1. RIGHT FIRST TIME MANUFACTURING STANDARD OPERATING PROCEDURES 2. CONFIDENTIALITY STATEMENT This document contains the Product Technical policies and procedures for the Chicos Brand of Chicos FAS, Inc. Sections of this Chicos Right First Time Manufacturing Standard Operating Procedures will apply to Soma Intimates as well. Please reference the Soma Intimates Extranet page for details explaining which sections of this manual apply to Soma Intimates. Any quality processes that were developed for Soma Intimates unique product categories will be identified on the Soma Intimates Extranet. This document is confidential and proprietary property of Chicos FAS, Inc. and Chicos Retail Services, Inc. It is not to be copied or reproduced nor its contents disclosed in whole or in part without the express written consent of Chicos. Copyright 2008 by Chicos Retail Services, Inc. All rights reserved. 3. CHICO'S NEW SUPPLIER ONBOARDING OVERVIEW 1 - ONBOARDING FACTORY TECHNICAL EVALUATION FORM & EXECUTIVE OVERVIEW 2 - TECH EVALUATION FABRIC AND GARMENT PERFORMANCE REQUIREMENTS 3 - FABRIC PERF FABRIC DEVELOPMENT 3A - FABRIC DEV FABRIC INSPECTION 3B FABRIC INSP APPENDIX 3B APPENDIX 3B APPROVED TESTING SERVICES 3C TESTING SERVICES FABRIC AND GARMENT PERFORMANCE STANDARDS 3D PERF STANDARDS APPENDIX 3D - TESTING MATRICES FOR PERFORMANCE SPECIFICATIONS APPENDIX 3D FLAMMABILITY 3E FLAMMABILITY COLOR 4 - COLOR WEAR TRIAL - PROCEDURE 5 - WEAR TRIAL PRODUCT DEVELOPMENT APPROVAL PROCESS 6 - PRODUCT APPVL MINIMUM PRODUCT QUALITY GUIDELINES FOR CONSTRUCTION (APPAREL, ACCESSORIES, WATCHES & JEWELRY) 7 - MINIMUM QUALITY APPROVED TRIM SUPPLIERS 8 - APPVD SUPPLIER TECH PACK 9 - TECH PACK HOW TO MEASURE GUIDELINE 10 - HOW TO MEASURE PRODUCT FOLDER 11 - PRODUCT FOLDER PRE-PRODUCTION MEETING - PROCEDURE & PLANNING REPORT 12 - PP MEETING CUTTING ROOM - PROCEDURE 13 - CUTTING TRAFFIC LIGHT SYSTEM IN FACTORY - PROCEDURE 14 - TRAFFIC LIGHT COMMON GARMENT DEFECT TYPES AND ZONES 15 - DEFECT TYPES SEWING - PROCEDURE 16 - SEWING IN-LINE INSPECTION - PROCEDURE 17 - INLINE INSPECTION EMBELLISHMENT - PROCEDURE 18 - EMBELLISHMENT WASH DEVELOPMENT PROCESS 19 - WASH PROCESS PRESSING AND FINISHING - PROCEDURE 20 - PRESS & FINISH PACKAGING AND SHIPPING - PROCEDURE 21 - PACK & SHIP FINISHED GOODS AUDIT - FINAL RANDOM INSPECTION - PROCEDURE & INSPECTION REPORT 22 - FINAL INSPECTION QUALITY ALERT 23 - QUALITY ALERT PRODUCT RECALL FROM STORES 24 - RECALL RETURN TO VENDOR (RTV) PROCESS 25 - RTV REVISION HISTORY 26 - REVISION HIST ACCESSORIES FINISHED GOODS AUDIT 27 - ACCY FINAL INSP SAMPLE TAGGING PROCESS 28 - SAMPLE TAGGING POLICIES 29 - POLICIES CHICO'S RIGHT FIRST TIME MANUFACTURING STANDARD OPERATING PROCEDURES SECTION Chico's SOP Manual 06-01-10 Contents 4. Chicos SOP Manual 08-01-08 Section 1 - Page 1 of 1 DOWNLOADABLE DOCUMENTS Chicos has made the complete Right First Time Manufacturing Standard Operating Procedures Manual available on our Vendor Extranet: http://vendors.chicos.com All of the forms found in this Manual are available under the Vendor Manuals link on the Extranet. In addition, the Vendor Extranet has the latest copies of our Vendor Routing Guideline, Approved Label Suppliers and ordering forms, and factory profile forms available for download. 5. Chicos SOP Manual 08-01-08 Section 1 - Page 1 of 3 CHICOS NEW SUPPLIER ONBOARDING 1- PreQualification Corporate Social Responsibility (CSR) Review Vendor and Factory Profile completed and approved CSR Audit of WRAP Certification CTPAT Factory Technical Evaluation 2- Onboarding Brand Support Brochure Chicos story Carolyn our customer How we support our customer Expectations Partnership Program Management Policies Communication Documentation Purchasing Terms & Conditions Ticketing and Labeling (suppliers) Vendor extranet http://vendors.chicos.com Chicos SOP & Right First Time Quality Management System Qualifications & Certifications Raw Materials & testing Product Development Pre-Production Tech Pack PP Meeting Technology handoff Performance testing Sampling requirements Fit/PP/PP Size Sets/TOP/Photo Manufacturing process controls Right First Time Manufacturing Right First Time Quality Program OQL Rating Best Practices SOPs Operator Training Operational descriptions Operator Contract Operator quality and performance checks Pattern to cutting Assembly Wet and dry processing Finishing Packing and shipping In-line, final, and shipping inspections Chicos Distribution Center - roles and responsibilities 6. Chicos SOP Manual 08-01-08 Section 1 - Page 2 of 3 Chicos SOP Manual 3rd party audits Self audits Testing Delivery Communication HD Video conferencing capabilities Documentation & Information Management 3- Supplier Ranking Three tier ranking Supplier Scorecard 7. Chicos SOP Manual 08-01-08 Section 1 - Page 3 of 3 CHICOS NEW SUPPLIER ONBOARDING CHECKLIST 1-What about Chicos? CSR Review Technical Evaluation Extranet Routing & Packing Logistics Quality Manual Factory Profiles CSR docs Copyright & Terms & Conditions - etc Process what to expect from us Mailer Primary means of advertising high visibility, late decisions larger qtys more difficult styling - NOT a Mail-Order Catalog no extra time 3 rd Party Contacts BV/ITS/Coats/YKK/A&E, etc Policies Auditing, testing, QA to consumer Communication who - Production/sourcing, Sourcing Ops, CSR, Product HD Video Conferencing capabilities Structure design -Product-tech-merchant-production/sourcing- sourcing Ops Documentation 24-48 hrs in advance + Practice docs to customs compliance Terms & Conditions Normally FOB - net 20 ROG our DC not handover date Routing & Packing Chargebacks Logistics air/sea ratio Raw Materials testing certification of labs inspection auditing Product Development product file Preproduction meetings product File Manufacturing follow PP meeting notes - best practices product file Delivery stays put unless agreed Communication when to advise Support for supplier from our side Sourcing Ops 2- What about the new supplier? Public/Private? Business size & customers which countries % for export Product Annual Turnover - $/units In house development? Factories owned? Joint Venture? CMT only? Capabilites? Management commitment to quality? 8. Supplier: ____________________________________________________________ Date: _________________________ Location: ___________________________________________________________________________________________ Mill/Supplier Profile Sample Yardage Fabric/Trim Data Sheet (FDS/TDS) Hand Loom/Lab Dip Initial Test Report (ITR) Quality/Hand Standard Tailoring Yardage (WHBM) Trim Submission Process Transparency Brand Representative: (Print) _________________________________ Initial: _________ Date: _____________________ Supplier Representative Signature: ______________________________________________________________________ Supplier Representative (Print): _________________________________________________________________________ Comments: _________________________________________________________________________________________ Development Additional Colorway Test Production Protocols Garment Test Production Fabric Submission Repeat/Flow Fabric Inspection Brand Representative: (Print) _________________________________ Initial: _________ Date: _____________________ Supplier Representative Signature: ______________________________________________________________________ Supplier Representative (Print): _________________________________________________________________________ Comments: _________________________________________________________________________________________ Color Standards/Maintenance Lab Dip Approval Records Records Retention Bulk Run Cards Light Sources Color Submission Procedures Lightbooth/Viewing Requirements Light Boxes (Check Defuser Plate) Colorist/Farnsworth Munsell 100 Hue Test Equipment Maintenance Records Equipment/Software Requirements Digital Tolerance Email/Communication Digital Standards/Methods of Measurement Brand Representative: (Print) _________________________________ Initial: _________ Date: _____________________ Supplier Representative Signature: ______________________________________________________________________ Supplier Representative (Print): _________________________________________________________________________ Comments: _________________________________________________________________________________________ Overall Comments: Chico's SOP Manual 07-23-12 Section 1A - Page 1 of 1 9. Date Completed Supplier Name Factory Name Address Category % Category % Womens Suiting City Mens Fdn-Bra Chico's No. Employees Kids Fdn-Panty Contact Person Knits Accessory WH|BM Contact Title Wovens Jewelry Telephone Sweater Metal Soma email Leather/Outer % Product % Product % Product % Private $ FOB 1 Public units 2 State period 3 Joint Venture % US 4 Other (explain) % Other 5 (where) 0 Factory Sq Footage Sewing or Knitting Machines Product 1 Product 2 Sewing Lines Avg Ops Product 3 Sewing Modules Avg Ops Product 4 Cut/knit Emps Shifts Sew/link Emps Shifts In House Dry Clean Available Fnsh/pkg Emps Shifts Contract Other QA Emplys Shifts Capacity/wk Machine Type Qty Qty Qty Customer Make Min Model Lights U30 D65 Pass 2.5 Workstation IncA 0 Pass 4.0/Fail 2.5 Plotter Fail 4.0Converted 0 Qty Total 0 Insp Sample Qty Model Sizes Make Defect Descript. Maj Product Description Fit Mannequins CAD System Light Booth Basic Equipment Summary Automatic & Specialized Equipment Main Brand Machine Type Main Brand Machine Type Main Brand Basic Wash Denim Garment Dye Laundry, Wet & Dry Process & Dry Clean Total Average Capacity Linking Machines (if applicable) Average Monthly Capacity Factory Manufacturing Setup Subcontracting Units Name Location Operation Main Products Manufactured: total top 5 Factory Ownership structure Business Volume Top 5 customers Country No. Contract Workers Business Categories CHS Division (all that apply) Factory Contact to complete shaded areas Length of relationship with this factory Chico's SOP Manual 01-01-2012 Section 2A - FP - Page 1 of 1 10. SUPPLIER FACTORY LOCATION DIVISION EVALUATION DATE _ _ _ _ AUDITOR & ORGANIZATION _ _ _ _ TOTAL SCORE 0 0 0 0 TOTAL AREAS x MAXIMUM POINTS 0 10 0 0 OVERALL RATING 0.00 0.00 0.00 0.00 NA= Not applicable 0 = No records, procedure or Manual exists 5 = Half the records, procedures or Manuals are in place & being used 10 = Benchmarking Activity - 100% of the time 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Management _ _ _ _ Customer base compatibility _ _ _ _ Product Strength compatibility _ _ _ _ Order size compatibility _ _ _ _ Production management setup _ _ _ _ Engineering & compensation of workers _ _ _ _ Economic stability _ _ _ _ Business perspective - from point of view of Senior Management _ _ _ _ Philosophies & Disciplines _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score In house design _ _ _ _ In house CAD _ _ _ _ CAD System - compatible with brand's CAD systems. Updated with current software updates [RECORDS] _ _ _ Product file - created during new product development & maintained after style/product adoption [RECORDS] _ _ _ _ Dedicated sample room - _ _ _ _ Notes of sampling issues in product file _ _ _ _ Light booth - containing brand's approved light sources _ _ _ _ HD Video Conferencing Capability _ _ _ _ Housekeeping _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 10 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Confidential Document - Not to be distributed without authorization of Chico's FAS VP or Director Sourcing _ Business Overview Product Development & Sampling _ _ _ SCORING CRITERIA - Auditor will use his or her judgment to assess the level of each point from 0 to 10 using the following guidelines APPAREL AND FASHION ACCESSORIES FACTORY TECHNICAL EVALUATION FORM Chico's SOP Manual 06-01-13 Section 2 - Page 1 of10 11. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure for pre-production process available and used by relevant associates.[MANUAL] _ _ _ _ Internal spec package- done by translating buyers specs to local language for easy communication. [RECORDS] _ _ _ _ Pre-Production meeting- for all styles attended by senior representatives of all involved departments. Minutes & documentation are distributed to all relevant areas. [RECORDS] _ _ _ _ Approved Sample- issued to production with a colored tag for Pilot Run Reference.[PROCEDURE] _ _ _ _ Pre-Production Pilot Lot (Size Set) - evaluated, approved prior to cutting bulk production. [RECORDS] _ _ _ _ Sample evaluation- evaluated by trained technician. [RECORDS] _ _ _ _ Mannequins- CHS approved mannequins used for fit evaluation during pre- production and production stages.[PROCEDURE] _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Structure - QA Team reporting to Managing Director _ _ _ _ SOPs - In place for all manufacturing activities [RECORDS] _ _ _ _ In Line Inspection - performed to AQL 1.5 at critical manufacturing points [RECORDS & PROCEDURE] _ _ _ _ Certified auditor - Identified, trained & responsible to brand for Quality & SOP implementation [PERSONNEL] _ _ _ _ Written Audit Procedure-for conducting a final audit to brand's standard is available & used by relevant associates[MANUAL] _ _ _ _ Final Audit Area- with fixtures & tools available to conduct final audits. [LOCATION] _ _ _ _ Illumination- around 150 foot candle/1500 LUX with brand's approved light sources as part of the light source [LOCATION] _ _ _ _ Information- Style file, trim card, Material/shade standard/band, S.O., UPC sheet available to conduct final audit. [RECORDS] _ _ _ _ Final Sealed bag sample- available for final audit. [PROCEDURE] _ _ _ _ Barcode scanner available and calibrated on a routine basis. [PROCEDURE & RECORDS] _ _ _ _ Final audits- are conducted per CHS sampling plans for visual, measurement & packing accuracy. [PROCEDURE] _ _ _ _ Audit reports- CHS approved formats are used while conducting audits [RECORDS] _ _ _ _ OQL - Outgoing Quality Level is reported & acceptable _ _ _ _ Reporting System- Used to update management & initiate corrective action _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Pre-Production Controls QA Systems & Support Chico's SOP Manual 06-01-13 Section 2 - Page 2 of10 12. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Training area - Training room or vestibule, separate from the main production line [LOCATION] _ _ _ _ Formalized training program - with testing & certification to ensure qualification. [PROCEDURE & RECORDS] _ _ _ _ Cross Training - In training area or in line with testing & certification to ensure qualification. [PROCEDURE & RECORDS] _ _ _ _ Career Advancement Program - In place to offer development opportunities [records] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure- for Raw Material Management including receiving, inventory, inspection & testing processes & used by relevant associates [MANUAL] _ _ _ _ Activity Log- For all Raw Material Management activities - receiving report, Inventory movement, etc. [RECORDS] _ _ _ _ Illumination level in raw material warehouse is adequate at around 50 foot candles or 500 LUX.[LOCATION] _ _ _ _ Fabric or raw material inspection- machine available, fabric width, yardage & 4 point audit plan. [RECORDS] _ _ _ _ Shade variation- checked per dye lot at side, center, side and end to end. [RECORDS} _ _ _ _ Skew test- done per dye lot. [RECORDS} _ _ _ _ Fabric or raw material weight- using a weighing scale & punch cutter. Weighing scale is calibrated internally or by 3rd party. [RECORDS] _ _ _ _ Shrinkage test- 100% on stretch and non-stretch per dye lot. Knit & woven fabrics [RECORDS] _ _ _ _ Shade grouping- by dye lot for non-washed product and 100% of the rolls for wet processed raw material. [RECORDS] _ _ _ _ In-house lab- to perform basic testing with light box and dark room. Lab also used for trim testing. [LOCATION] _ _ _ _ Mill inspection and test reports- cross checked during in-house inspection and testing.[ RECORDS] _ _ _ _ Inventory Control- Inventory identification & Locator system [PROCEDURE] _ _ _ _ Raw Material Storage- Raw materials are stored in an appropriate manner, indoors, packaged, and by lot [PROCEDURE] _ _ _ _ Raw Material Handling- Raw materials are handled in a manner that ensures purchased quality is maintained. [PROCEDURE] _ _ _ _ Weighing scale calibration- by 3rd party laboratory or internal audit team.[RECORDS} _ _ _ _ Housekeeping - appropriate for type of operation _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Training program Raw Material Management - Primary Chico's SOP Manual 06-01-13 Section 2 - Page 3 of10 13. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure- for Raw Material Management including receiving, inventory, inspection & testing processes & used by relevant associates [MANUAL] _ _ _ _ Activity Log- For all Raw Material Management activities - receiving report, Inventory movement, etc. [RECORDS] _ _ _ _ Illumination level - in warehouse is adequate at around 50 foot candles or 500 LUX.[LOCATION] _ _ _ _ Trim Information- buyers trim spec sheet, internal trim spec or BOM. and UPC data sheet used during receiving audits.[PROCEDURE] _ _ _ _ Sewing trim quality audit- 2.5 AQL sampling plan. [RECORDS] _ _ _ _ Labels, tags & sticker quality audit- 2.5 AQL sampling plan. [RECORDS] _ _ _ _ Testing for color fastness- for trims based on after treatment process or care instructions.[RECORDS] _ _ _ _ Quick check barcode scanner- to check accuracy of barcodes of UPC size stickers and pre-pack stickers and scanner is calibrated on a routine basis.[RECORDS] _ _ _ _ Pre-shrinking of elastic, tapes etc prior to cut and sew _ _ _ _ Weighing scale calibration- by 3rd party laboratory or internal audit team.[RECORDS} _ _ _ _ Packaging materials- Quality of hangers, polybags, cartons, etc. checked to 2.5 AQL sampling plan [RECORDS] _ _ _ _ Trim card- prepared and approved by responsible officer and distributed to relevant areas.[PROCEDURE] _ _ _ _ In house printing- of price labels. Correct equipment & systems [LOCATION] _ _ _ _ Housekeeping - appropriate for type of operation _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Approved brand's Fit Forms - available on site for verification of fit. [LOCATION] _ _ _ _ CGM capability- computer pattern making, grading and marker making available and all patterns from each stage saved in an organized manner.[LOCATION] _ _ _ _ Calibration & preventive maintenance of plotters- on a routine basis at least monthly. [RECORDS] _ _ _ _ Marker Signoff- Marker yield, orientation, location of pieces, ID, etc. reviewed & approved by senior pattern engineer. [PROCEDURE] _ _ _ _ Marker/Raw Material Shrinkage Signoff- Shrinkage allowance of marker reviewed against shrinkage tests & approved by senior pattern engineer. [PROCEDURE] _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Patterns, Marker Making & Molding Raw Material Management - Trims, Sundries & Packaging Chico's SOP Manual 06-01-13 Section 2 - Page 4 of10 14. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure for cut Planning & materials allocation available & in use by relevant associates. [MANUAL] _ _ _ _ Written procedure for cutting quality and production controls available and used by relevant associates.[MANUAL] _ _ _ _ Raw Material & Trim Allocation- Materials allocated to cutting ticket by lot & piece number [RECORDS] _ _ _ _ Raw Material & trim picking- Raw materials picked from cutting ticket by allocated piece with verification to BOM. [PROCEDURE] _ _ _ _ Marker Signoff- Marker yield, orientation, location of pieces, ID, etc. reviewed & approved by cutting room manager prior to use. [PROCEDURE] _ _ _ _ Marker/Raw Material Shrinkage Signoff- Shrinkage allowance of marker reviewed against shrinkage tests & approved by responsible officer [PROCEDURE] _ _ _ _ Illumination level over cutting table is adequate around 100 foot candles or 1000 LUX.[LOCATION] _ _ _ _ Equipment- correct equipment & appropriate for use [PROCEDURE] _ _ _ _ Preventive maintenance- in place for all equipment. [RECORDS] _ _ _ _ Raw Material- Issued raw material compared to the actual raw material pulled for the cut [PROCEDURE] _ _ _ _ Raw Material relaxation- in place for stretch material and cut into sections for further relaxation. [PROCEDURE] _ _ _ _ Spread inspection- performed & documented by cutting room QA team. [RECORDS] _ _ _ _ Bundle/cut report- used as a production tool for bundle control.[RECORDS] _ _ _ _ Cut accuracy audit- performed & documented by cutting QA team.[RECORDS] _ _ _ _ Numbering of parts- for all parts [PROCEDURE] _ _ _ _ Handling of cut Parts- appropriate for type of material and products [PROCEDURE] _ _ _ _ Bulk Parts- procedure in place to maintain quality & quantity integrity for bulk cut parts such as pocketing & slit trim [PROCEDURE] _ _ _ _ Housekeeping - appropriate for type of operation _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure for fusing quality and machine maintenance available for use by relevant associates. [MANUAL] _ _ _ _ Illumination level over fusing area is adequate around 100 foot candles or 1000 LUX.[LOCATION] _ _ _ _ Preventive maintenance & routine cleaning- in place for fusing machines / belts.[RECORDS] _ _ _ _ Fusing standard- temperature, pressure and speed pre-established for each type of material and fusible. [RECORDS]. _ _ _ _ Thermo strip papers- to check fuse line temperature on a minimum of twice daily basis and references of strips kept in a log book.[RECORDS] _ _ _ _ Bond strength- Newton Scale used to verify pressure while records are kept in a log book.[RECORDS] _ _ _ _ Quality audits- performed to AQL 1.5 to verify material color change, strike off etc of fused parts. [RECORDS] _ _ _ _ Housekeeping - appropriate for type of operation _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Fusing Cutting Production Chico's SOP Manual 06-01-13 Section 2 - Page 5 of10 15. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Illumination- around 100 foot candle/1000 LUX over sewing machine, and around 150 foot candle/1500 LUX over inspection table. Task Lights where required [LOCATION] _ _ _ _ Preventive maintenance & routine cleaning procedures in place.[RECORDS] _ _ _ _ Needle- broken parts retrieval in place & routine change in place for special material. [RECORDS] _ _ _ _ TOP (Top of Production) - drawn from Pilot Run prior to commencement of bulk production. [PROCEDURE] _ _ _ _ Operator Contract (example) - posted at each machine signed by operator, QA, and line supervisor. [PROCEDURE] _ _ _ _ Posting of Standards- At each operation, describing method & quality requirements [PROCEDURE] _ _ _ _ Bundle/piece control- is used to maintain integrity of sewn product [PROCEDURE]. _ _ _ _ Templates or markers- used per shrinkage pattern to mark critical placements using tailoring chalk or invisible pens.{PROCEDURE] _ _ _ _ Under pressing is done for applicable operations to maintain better quality.[PROCEDURE] _ _ _ _ Skill inventory- available for supervisors use to balance line so that back log can be prevented during production.[RECORDS] _ _ _ _ Engineering of methods- to produce in an efficient manner [RECORDS]. _ _ _ _ Production record/Traffic Light (or Similar) - by operator available and checked by supervisors & QA at least 4 times daily.[RECORDS] _ _ _ _ Overall Efficiency Level- Measured & reported & appropriate for factory {RECORDS] _ _ _ _ Technically skilled staff- in place for each line to do start up of production. [PERSONNEL] _ _ _ _ In-process quality audits - embedded in the line to prevent irreparable product.[RECORDS] _ _ _ _ End-line audits- performed to 1.5 AQL prior to release to next process.[RECORDS] _ _ _ _ Product transportation is done in a proper manner by production lot number, etc. to next process. [PROCEDURE] _ _ _ _ Work in Process- Level is appropriate to maintain efficiency & quality [LOCATION] _ _ _ _ Housekeeping - appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Assembly Area Chico's SOP Manual 06-01-13 Section 2 - Page 6 of10 16. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Illumination- around 100 foot candle/1000 LUX over sewing machine or work area, and around 150 foot candle/1500 LUX over inspection table. Task Lights where required [LOCATION] _ _ _ _ Preventive maintenance & routine cleaning procedures in place.[RECORDS] _ _ _ _ Needle- broken parts retrieval in place & routine change in place for special material. [RECORDS] _ _ _ _ Operator Contract (example) - posted at each machine signed by operator, QA, and line supervisor. [PROCEDURE] _ _ _ _ Posting of Standards- At each operation, describing method & quality requirements [PROCEDURE] _ _ _ _ Bundle/piece control- is used to maintain integrity of product [PROCEDURE]. _ _ _ _ Templates or markers- used per shrinkage pattern to mark critical placements using tailoring chalk or invisible pens.{PROCEDURE] _ _ _ _ Skill inventory- available for supervisors use to balance line so that back log can be prevented during production.[RECORDS] _ _ _ _ Engineering of methods- to produce in an efficient manner [RECORDS]. _ _ _ _ Production record/Traffic Light (or Similar) - by operator available and checked by supervisors & QA at least 4 times daily.[RECORDS] _ _ _ _ Overall Efficiency Level- Measured & reported & appropriate for factory {RECORDS] _ _ _ _ Technically skilled staff- in place for each line to do start up of production. [PERSONNEL] _ _ _ _ In-process quality audits - embedded in the line to prevent irreparable product.[RECORDS] _ _ _ _ End-line audits- performed to AQL 1.5 prior to release to next process.[RECORDS] _ _ _ _ Product transportation is done in a proper manner by production lot number, etc. to next process. [PROCEDURE] _ _ _ _ Work in Process- Level is appropriate to maintain efficiency & quality [LOCATION] _ _ _ _ Health & Safety - temperature is comfortable, machines are guarded. [LOCATION] _ _ _ _ Housekeeping - appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Embellishment - Beading, Printing, Embroidery, etc. Chico's SOP Manual 06-01-13 Section 2 - Page 7 of10 17. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Part of parent company _ _ _ _ Separated from other departments _ _ _ _ Management Philosophy & Discipline _ _ _ _ Written SOP- inclusive of Statistical QA Systems [RECORDS] _ _ _ _ Visitor working area- with necessary power & communication access [LOCATION] _ _ _ _ Sampling & Development area _ _ _ _ Adequate sample machinery & staff _ _ _ _ Process knowledge in sample department- equals production knowledge _ _ _ _ Fashion forward knowledge _ _ _ _ Wet process abilities _ _ _ _ Dry process abilities _ _ _ _ Documentation - of all trials & processes [RECORDS] _ _ _ _ Technology Transfer - from R&D to samples to production [RECORDS & PROCEDURE] _ _ _ _ Load Management- by weight - not count or volume [PROCEDURE] _ _ _ _ Water & chemistry - checks during operations [PROCEDURE & RECORDS] _ _ _ _ Wet & Dry Standards - on hand & in use by relevant associate [PROCEDURE] _ _ _ _ Illumination- around 100 foot candle/1000 LUX while inspection areas have brand's approved light sources lights of around 150 foot candle/1500 LUX. [LOCATION] _ _ _ _ Preventive maintenance & routine cleaning procedures in place.[RECORDS] _ _ _ _ Safety- all safety guards in place & functional as designed [LOCATION] _ _ _ _ Computer controlled machinery _ _ _ _ Proper use of chemistry- for product & end use _ _ _ _ Ozone & UV barriers - used on all sensitive garments [RECORDS] _ _ _ _ Wet box evaluation station-in use with proper lighting [LOCATION] _ _ _ _ Load & production Tracking - in place [RECORDS] _ _ _ _ Written formulas and process chemistry at machine [RECORDS] _ _ _ _ Work in Process- Level is appropriate to maintain efficiency & quality [LOCATION] _ _ _ _ Written Production scheduling [RECORDS] _ _ _ _ Proper Chemical Storage _ _ _ _ Proper measurement of chemistry _ _ _ _ Proper use - of standards & shade bands _ _ _ _ Basic testing _ _ _ _ Proper safety equipment - including eyewash stations - in place & in use [PROCEDURE] _ _ _ _ MSDS sheets & Hazardous spill plan - immediately available to associates [RECORDS] _ _ _ _ Evacuation Plan- posted & understandable [RECORDS] _ _ _ _ Fire Plan- posted & understandable [RECORDS] _ _ _ _ Ease of interaction _ _ _ _ Housekeeping - appropriate for type of operation - free of excessive water & waste product. [LOCATION] _ _ _ _ Waste Water treatment - compliant with local & globally accepted standards. [RECORDS &LOCATION] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Wet & Dry Processing Chico's SOP Manual 06-01-13 Section 2 - Page 8 of10 18. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written Procedure- for finishing quality, production & maintenance controls available & used by relevant associates. [MANUAL] _ _ _ _ Packing & Routing Guideline- Current CHS Packing & Routing Guideline available & in use by relevant associates [MANUAL] _ _ _ _ Illumination- around 100 foot candle/1000 LUX while inspection areas have brand's approved light sources lights of around 150 foot candle/1500 LUX. [LOCATION] _ _ _ _ Preventive Maintenance- in place for all equipment (thermostats working, clean pressing covers & Teflon shoes for hand irons). [RECORDS] _ _ _ _ Approved Pressing standard- established and communicated displayed for use by pressing operators with work instructions.[PROCEDURE] _ _ _ _ Trim distribution & usage- Hang tags, UPC stickers etc are distributed & stored by style, size and color so as to prevent mix ups during packing. [PROCEDURE] _ _ _ _ In-process audits- to 1.5 AQL for quality, measurements & packing accuracy. [RECORDS] _ _ _ _ Heat sealer, 3M600 or BHT free tape- used to close poly bags and space around garment is correct, bags not too big. [PROCEDURE] _ _ _ _ Shade stickers- are used on poly bag and carton to identify shade lots being shipped by style. [PROCEDURE] _ _ _ _ Carton markings are correct to latest manual update and sample cartons for each store & country available for cross reference. [PROCEDURE] _ _ _ _ Carton label placement- guides or templates are used for correct placement of UPC, Pre-Pack, CIB and UCC-128 stickers. [PROCEDURE] _ _ _ _ Security Tape- used to close cartons. [PROCEDURE] _ _ _ _ Housekeeping - appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written Procedure- for Shipping & Documentation available & used by relevant associates. [MANUAL] _ _ _ _ Packing & Routing Guideline- Current CHS Packing & Routing Guideline available & in use by relevant associates [MANUAL] _ _ _ _ Documentation - complete history of previous 6 months shipping documentation on file & available for reference. [RECORDS] _ _ _ _ Customs Reference Manual - current & on hand & used for reference [MANUAL] _ _ _ _ Replenishment capability _ _ _ _ Pick & Pack Capability _ _ _ _ TPM Interface _ _ _ _ ASN Capability _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Shipping & Documentation Finishing, Pressing & Packing Chico's SOP Manual 06-01-13 Section 2 - Page 9 of10 19. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Assigned Representative- Speaking English as point person for all issues. [PERSON] _ _ _ _ Vendor Updates- available on Chico's Extranet is viewed by merchandising as well as production staff. [PROCEDURE] _ _ _ _ Certified Factory Auditor - Identified, trained & responsible to brand for Quality & SOP implementation [PERSONNEL] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score General working conditions- acceptable per CHS requirements [LOCATION] _ _ _ _ Emergency exit & safety precautions - available and clearly visible [PROCEDURE] _ _ _ _ Hazardous materials/chemicals - proper storage & use. Correct Personal Safety Equipment is at work areas. Information & operation training conducted at least annually. [RECORD & LOCATION] _ _ _ _ Overall cleanliness - of washroom, cafeterias and drinking water is acceptable [LOCATION] _ _ _ _ Worker safety measures- are established at all areas for operators, cutters etc [PROCEDURE] _ _ _ _ First Aid Kits - in place & in the work area. Unlocked & fully stocked.[PROCEDURE] _ _ _ _ Personal Safety Equipment- in in use & correct for operation.[PROCEDURE] _ _ _ _ Safety Training - Conducted at least twice per year. [RECORDS] _ _ _ _ Bulletin boards and code of conduct- are posted at important points [PROCEDURE] _ _ _ _ Housekeeping - appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating C-TPAT Security Compliance 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Perimeter surroundings- is secured and guards present [LOCATION] _ _ _ _ Building access- for visitors controlled and identification tags used [PROCEDURE] _ _ _ _ Vehicle entry access- is controlled at entrance [PROCEDURE] _ _ _ _ Packed goods- are stored in enclosed [LOCATION] _ _ _ _ Security presence- during unloading and loading of packed goods [PROCEDURE] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating _ _ _ _ _ _ _ _ _ COMMENTS FROM AUDITOR _ _ General Compliance Customer Interface Chico's SOP Manual 06-01-13 Section 2 - Page 10 of10 20. _ _ _ _ _ _ _ _ 0.00 0.00 0.00 0.00 NA= Not applicable 0% = No records, procedure or Manual exists 50% = Half the records, procedures or Manuals are in place & being used 100% = Benchmarking Activity - 100% of the time 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 _ _ _ _ _ _ _ _ _ _ _ _ _ _ Chico's SOP Manual 01-01-2012 Section 2A-EO - Page 1 of 1 21. Date Completed Supplier Name Factory Name Address Category % Category % Womens Suiting City Mens Fdn-Bra Chico's No. Employees Kids Fdn-Panty Contact Person Knits Accessory WH|BM Contact Title Wovens Jewelry Telephone Sweater Metal Soma email Leather/Outer % Product % Product % Product % Private $ FOB 1 Public units 2 State period 3 Joint Venture % US 4 Other (explain) % Other 5 (where) 0 Factory Sq Footage Sewing or Knitting Machines Product 1 Product 2 Sewing Lines Avg Ops Product 3 Sewing Modules Avg Ops Product 4 Cut/knit Emps Shifts Sew/link Emps Shifts In House Dry Clean Available Fnsh/pkg Emps Shifts Contract Other QA Emplys Shifts Capacity/wk Customer Make Min Model Lights U30 D65 Pass 2.5 Workstation IncA 0 Pass 4.0/Fail 2.5 Plotter Fail 4.0Converted 0 Qty Total 0 Insp Sample Qty Model Sizes Make Defect Descript. Maj Product Description Fit Mannequins CAD System Light Booth Basic Wash Denim Garment Dye Laundry, Wet & Dry Process & Dry Clean Total Average Capacity Linking Machines (if applicable) Average Monthly Capacity Factory Manufacturing Setup Subcontracting Units Name Location Operation Main Products Manufactured: total top 5 Factory Ownership structure Business Volume Top 5 customers Country No. Contract Workers Business Categories CHS Division (all that apply) Factory Contact to complete shaded areas Length of relationship with this factory Chico's SOP Manual 07-01-2012 Section 2C - FP - Page 1 of 1 22. SUPPLIER FACTORY LOCATION DIVISION EVALUATION DATE _ _ _ _ AUDITOR & ORGANIZATION _ _ _ _ TOTAL SCORE 0 0 0 0 TOTAL AREAS x MAXIMUM POINTS 0 0 0 0 OVERALL RATING 0.00 0.00 0.00 0.00 NA= Not applicable 0 = No records, procedure or Manual exists 5 = Half the records, procedures or Manuals are in place & being used 10 = Benchmarking Activity - 100% of the time 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Management _ _ _ _ Customer base compatibility _ _ _ _ Product Strength compatibility _ _ _ _ Order size compatibility _ _ _ _ Production management setup _ _ _ _ Engineering & compensation of workers _ _ _ _ Economic stability _ _ _ _ Business perspective - from point of view of Senior Management _ _ _ _ Philosophies & Disciplines _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score In house design _ _ _ _ In house CAD _ _ _ _ CAD System - compatible with brand's CAD systems. Updated with current software updates [RECORDS] _ _ _ _ Product file - created during new product development & maintained after style/product adoption [RECORDS] _ _ _ _ Dedicated sample room - _ _ _ _ Notes of sampling issues in product file _ _ _ _ Light booth - containing brand's approved light sources _ _ _ _ HD Video Conferencing Capability _ _ _ _ Housekeeping _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Business Overview Product Development & Sampling _ _ _ Confidential Document - Not to be distributed without authorization of Chico's FAS VP or Director Sourcing _ SCORING CRITERIA - Auditor will use his or her judgment to assess the level of each point from 0 to 10 using the following guidelines SWEATERS AND SWEATER KNIT PRODUCT FACTORY TECHNICAL EVALUATION FORM Chico's SOP Manual 06-01-13 Section 2C - Page 1 of11 23. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure for pre-production process available and used by relevant associates.[MANUAL] _ _ _ _ Internal spec package- done by translating buyers specs to local language for easy communication. [RECORDS] _ _ _ _ Pre-Production meeting- for all styles attended by senior representatives of all involved departments. Minutes & documentation are distributed to all relevant areas. [RECORDS] _ _ _ _ Approved Sample- issued to production with a colored tag for Pilot Run Reference.[PROCEDURE] _ _ _ _ Pre-Production Pilot Lot (Size Set) - evaluated, approved prior to cutting bulk production. [RECORDS] _ _ _ _ Sample evaluation- evaluated by trained technician. [RECORDS] _ _ _ _ Mannequins- CHS approved mannequins used for fit evaluation during pre-production and production stages.[PROCEDURE] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Structure - QA Team reporting to Managing Director _ _ _ _ SOPs - In place for all manufacturing activities [RECORDS] _ _ _ _ In Line Inspection - performed to AQL 1.5 at critical manufacturing points [RECORDS & PROCEDURE] _ _ _ _ Certified auditor - Identified, trained & responsible to brand for Quality & SOP implementation [PERSONNEL] _ _ _ _ Written Audit Procedure-for conducting a final audit to brand's standard is available & used by relevant associates[MANUAL] _ _ _ _ Final Audit Area- with fixtures & tools available to conduct final audits. [LOCATION] _ _ _ _ Illumination- around 150 foot candle/1500 LUX with brand's approved light sources as part of the light source [LOCATION] _ _ _ _ Information- Style file, trim card, Material/shade standard/band, S.O., UPC sheet available to conduct final audit. [RECORDS] _ _ _ _ Final Sealed bag sample- available for final audit. [PROCEDURE] _ _ _ _ Barcode scanner available and calibrated on a routine basis. [PROCEDURE & RECORDS] _ _ _ _ Final audits- are conducted per CHS sampling plans for visual, measurement & packing accuracy. [PROCEDURE] _ _ _ _ Audit reports- CHS approved formats are used while conducting audits [RECORDS] _ _ _ _ OQL - Observed Quality Level is reported & acceptable _ _ _ _ Reporting System- Used to update management & initiate corrective action _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating QA Systems & Support Pre-Production Controls Chico's SOP Manual 06-01-13 Section 2C - Page 2 of11 24. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Training area - Training room or vestibule, separate from the main production line [LOCATION] _ _ _ _ Formalized training program - with testing & certification to ensure qualification. [PROCEDURE & RECORDS] _ _ _ _ Cross Training - In training area or in line with testing & certification to ensure qualification. [PROCEDURE & RECORDS] _ _ _ _ Career Advancement Program - In place to offer development opportunities [records] _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure- for Yarn including receiving, inventory, inspection & testing processes & used by relevant associates [MANUAL] _ _ _ _ Activity Log- For all Raw Material Management activities - receiving report, Inventory movement, etc. [RECORDS] _ _ _ _ Illumination level in yarn warehouse is adequate at around 50 foot candles or 500 LUX.[LOCATION] _ _ _ _ Yarn inspection- machine available, verify yarn count, Yarn size, knots, thick & thin Spots and inspection sampling rule. [RECORDS] _ _ _ _ Color Shade control - sort and store by dye lot or by greige lot. [RECORDS] _ _ _ _ Color fastness test - done per color. [RECORDS} _ _ _ _ Shade variation - Statistical verification of consistency of shade between cones of the same dye lot. [RECORDS] _ _ _ _ Moisture regain test - perform by color. [ RECORDS ] _ _ _ _ Knit-down inspection: perform by color. [ RECORDS ] _ _ _ _ In-house lab- to perform basic testing with light box and dark room. Lab also used for trim testing. [LOCATION] _ _ _ _ Spinner inspection and test reports- cross checked during in-house inspection and testing.[ RECORDS] _ _ _ _ Inventory Control- Inventory identification & Locator system [PROCEDURE] _ _ _ _ Raw Material Storage- Raw materials are stored in an appropriate manner, indoors, packaged, and by lot [PROCEDURE] _ _ _ _ Raw Material Handling- Raw materials are handled in a manner that ensures purchased quality is maintained. [PROCEDURE] _ _ _ _ Weighing scale calibration- by 3rd party laboratory or internal audit team.[RECORDS} _ _ _ _ Housekeeping appropriate for type of operation _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Training program Yarn Warehouse - Primary Chico's SOP Manual 06-01-13 Section 2C - Page 3 of11 25. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure- for Raw Material Management including receiving, inventory, inspection & testing processes & used by relevant associates [MANUAL] _ _ _ _ Activity Log- For all Raw Material Management activities - receiving report, Inventory movement, etc. [RECORDS] _ _ _ _ Illumination level - in warehouse is adequate at around 50 foot candles or 500 LUX.[LOCATION] _ _ _ _ Trim Information- buyers trim spec sheet, internal trim spec or BOM. and UPC data sheet used during receiving audits.[PROCEDURE] _ _ _ _ Sewing trim quality audit- 2.5 AQL sampling plan. [RECORDS] _ _ _ _ Labels, tags & sticker quality audit- 2.5 AQL sampling plan. [RECORDS] _ _ _ _ Testing for color fastness- for trims based on after treatment process or care instructions.[RECORDS] _ _ _ _ Quick check barcode scanner- to check accuracy of barcodes of UPC size stickers and pre-pack stickers and scanner is calibrated on a routine basis.[RECORDS] _ _ _ _ Pre-shrinking of elastic, tapes etc prior to cut and sew _ _ _ _ Weighing scale calibration- by 3rd party laboratory or internal audit team.[RECORDS} _ _ _ _ Packaging materials- Quality of hangers, polybags, cartons, etc. checked to 2.5 AQL sampling plan [RECORDS] _ _ _ _ Trim card- prepared and approved by responsible officer and distributed to relevant areas.[PROCEDURE] _ _ _ _ In house printing- of price labels. Correct equipment & systems [LOCATION] _ _ _ _ Housekeeping - appropriate for type of operation _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUB TOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Approved Brand's Fit Forms - available on site for verification of production knitting formula. [LOCATION] _ _ _ _ Knitting Formula - Computer softwear for producing knitting formula with yarn size, fiber content, gauge, grading, tension, hand feel, specifications. [LOCATION] _ _ _ _ Knitting formula Initial testing- performed to verify measurement specifications, tensions, garment weight, hand feel, etc. [PROCEDURE] Knitting formula Final - Sign-off by Knitting engineer for bulk production [PROCEDURE] Housekeeping - appropriate for type of operation SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Knitting Formula Raw Material Management - Trims, Sundries & Packaging Chico's SOP Manual 06-01-13 Section 2C - Page 4 of11 26. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure- for winding, knitting , panel production activities [MANUAL] Illumination level over winding and knitting section is adequate around 100 foot candles or 1000 LUX.[LOCATION] Yarn & Trim Allocation- yarn allocated to winding and knitting by color and by dye lots [RECORDS] Winding Yarn - same color yarn at same section [LOCATION] Waxing Yarn - same color yarn at same section [LOCATION] Approved brand's Pre-production samples - available on site and used for verification of Yarn content, Yarn size, tension, Gauge, Pattern, weight, hand feel [PROCEDURE] _ _ _ _ Automatic knitting first panel inspection - conducted daily from each machine, each panel, each style, each color, everyday. [RECORD] Hand Flat Bed Knitting first panel inspection - conducted daily from each knitting line, each panel, each style, each color, everyday. [RECORD] Automatic-Knitting - Tension Control - check each shift change, check first knitted panels then check every 6 hours by knitting engineer. [RECORD] _ _ _ _ Hand Flat Bed Knitting - Tension Control - 100% check from first 12 pcs by knitting engineer then every 2 hours for tension consistency. [RECORD] Inline Audits - conducted to prevent irreparable product. [PROCEDURE] Color Separation - Light, Medium, dark colors are separated in different knitting section to avoid contamination [RECORD] Bundling - Panels are placed in a plastic bag for sensitive blends and yarns that tend to have a high degree of fly fiber.[PROCEDURE] Panel Management - Panels from the same production knitting bundle are identified by unique number to ensure final product consistency. [RECORD] Knitted Panel Inspection - 100% of panels inspected for shade consistency and defective panels are replaced or mended [RECORD] _ _ _ _ Light Table - must be used for all gauges for knitted panel inspection. [PROCEDURE] Mending - All Panels rejected for knitting defects are mended before passing to next operation, mended panels are returned to original bundle. [PROCEDURE] Preventive Maintenance - of knitting machines on a weekly basis [RECORDS] _ _ _ _ Housekeeping - appropriate for type of operation SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Winding of Yarn, Knitting and Panels inspection Area Chico's SOP Manual 06-01-13 Section 2C - Page 5 of11 27. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure for linking and stitching is available & in use by relevant associates. [MANUAL] _ _ _ _ Quality audits- performed to 1.5 AQL to verify panel 100% inspection results. [RECORDS] Illumination level over linking and stitching section with task lighting as required is adequate around 100 foot candles or 1000 LUX .[LOCATION] _ _ _ _ Panels & Trim Allocation- Panels allocated to linking by lot & piece number [RECORDS] _ _ _ _ Approved brand's Pre-production samples or duplicates available on site and used for verification of linking method and tension. [LOCATION] _ _ _ _ Posting of Standards- At each operation, describing method & quality requirements [PROCEDURE] Linking instruction available and posted for each linker by style. [PROCEDURE] Linking Inspection : 100% check of each operation and style for holes, missed loops, correct linking yarn tension, stitch counts.[RECORD] _ _ _ _ Linking Machines - Protective guards on machines not in use. _ _ _ _ Linking Machines - Machine numbering system. _ _ _ _ Color Separation - Light, Medium, dark colors are separated to avoid yarn contamination [RECORD] _ _ _ _ Units are bundled - Units are placed in a plastic bag for sensitive blends and yarns that tend to have a high degree of fly fiber. Units per bundle appropriate for product.[PROCEDURE] _ _ _ _ Three dimensional light form - in use for inspection [PROCEDURE] Mending - All units rejected for Linking defects are mended before passing to next operation. Mended units are returned to original bundle. [PROCEDURE] Preventive maintenance- in place for all linking machine. [RECORDS] Housekeeping - appropriate for type of operation [ LOCATION] _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Linking & Stitching Area Chico's SOP Manual 06-01-13 Section 2C - Page 6 of11 28. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure for washing is available for use by relevant associates. [MANUAL] _ _ _ _ Illumination level over washing area is adequate around 100 foot candles or 1000 LUX.[LOCATION] _ _ _ _ Quality audits with three dimensional light form (before washing) - performed to AQL 1.5 to verify knitting and linking quality [RECORDS] Health & Safety - temperature is comfortable, machines are guarded, including eyewash stations - in place & in use [PROCEDURE & LOCATION] MSDS sheets & Hazardous spill plan - Immediately available to associates [RECORDS] Preventive maintenance of washing, extraction and drying machines - on a routine basis at least weekly [RECORDS] _ _ _ _ Garment transportation - is done in a manner appropriate for fiber content garment type. [PROCEDURE] Load & Production Tracking - in place [RECORDS] Proper storage of chemicals Proper measurement of chemistry Proper use - of standards & shade bands Approved brand's Pre-production samples or duplicates - available on site for verification of after washed standards : color, hand feel, hairiness etc. [PROCEDURE] _ _ _ _ Approved washing - Recipes or washing formulas posted for each color and style at machine and in use. [RECORD] _ _ _ _ Water quality : is consistent or filtered before use. PH is tested daily [RECORD] _ _ _ _ Bulk washing - quality inspections performed to ensure compliance to approval standards and reported to drive corrective actions [PROCEDURE] _ _ _ _ Waste Water Treatment - compliant with local & globally accepted standards. [RECORD & LOCATION] Housekeeping - appropriate for operation - free of excessive water and waste product [LOCATION] _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Washing Area Chico's SOP Manual 06-01-13 Section 2C - Page 7 of11 29. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written procedure for pressing quality, is available for use by relevant associates. [MANUAL] Illumination- around 100 foot candle/1000 LUX over pressing tables and measuring tables.[LOCATION] _ _ _ _ Quality audits with lighted form Inspection (after washing) - performed to AQL 1.5 Inspection to verify knitting and linking quality. [RECORDS] Mending - Rework all defectives [PROCEDURE] Preventive maintenance - in place for all equipment, (Thermostats working, clean pressing table cloth and Teflon shoes for hand irons) [RECORD] _ _ _ _ Pressing tools : Wooden block or Metal frame must have clear size markings and all signed off by pattern engineer [PROECDURE] _ _ _ _ Quality of pressing block - thickness is correct and no rough edges. [RECORD] Approved brand's Pre-production samples or duplicates available on site for verification of after pressed standard : shape and measurements. [PROCEDURE] _ _ _ _ Steam Pressure and moisture content : inspect for first batch of production, adjustment of steam pressure with records, based on hourly basis [PROCEDURE] _ _ _ _ Pressed Sweaters : maximum for fine gauge : 24 pcs in one pile, 6 pcs for coarse gauge [RECORD] _ _ _ _ Relaxation (before packaging) - minimum 1 shift relaxation before packing. Stacked product is covered with cloth sheet to minimize yarn contamination. Size measuring : pressed sweater must be measured 100 % all critical points [RECORD] _ _ _ _ Housekeeping - appropriate for type of operation [ LOCATION] SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Pressing & Measuring Area Chico's SOP Manual 06-01-13 Section 2C - Page 8 of11 30. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Illumination- around 100 foot candle/1000 LUX over sewing machine or work area, and around 150 foot candle/1500 LUX over inspection table. Task Lights where required [LOCATION] _ _ _ _ Preventive maintenance & routine cleaning procedures in place.[RECORDS] _ _ _ _ Needle- broken parts retrieval in place & routine change in place for special material. [RECORDS] _ _ _ _ Operator Contract (example) - posted at each machine signed by operator, QA, and line supervisor. [PROCEDURE] _ _ _ _ Posting of Standards- At each operation, describing method & quality requirements [PROCEDURE] _ _ _ _ Bundle/piece control- is used to maintain integrity of product [PROCEDURE]. _ _ _ _ Templates or markers- used per shrinkage pattern to mark critical placements using tailoring chalk or invisible pens.{PROCEDURE] _ _ _ _ Skill inventory- available for supervisors use to balance line so that back log can be prevented during production.[RECORDS] _ _ _ _ Engineering of methods- to produce in an efficient manner [RECORDS]. _ _ _ _ Production record/Traffic Light (or Similar) - by operator available and checked by supervisors & QA at least 4 times daily.[RECORDS] _ _ _ _ Overall Efficiency Level- Measured & reported & appropriate for factory {RECORDS] _ _ _ _ Technically skilled staff- in place for each line to do start up of production. [PERSONNEL] _ _ _ _ In-process quality audits - embedded in the line to prevent irreparable product.[RECORDS] _ _ _ _ End-line audits- performed to AQL 1.5 prior to release to next process.[RECORDS] _ _ _ _ Product transportation is done in a proper manner by production lot number, etc. to next process. [PROCEDURE] _ _ _ _ Work in Process- Level is appropriate to maintain efficiency & quality [LOCATION] _ _ _ _ Health & Safety - temperature is comfortable, machines are guarded. [LOCATION] _ _ _ _ Housekeeping - appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Embellishment - Beading, Printing, Embroidery, etc. Chico's SOP Manual 06-01-13 Section 2C - Page 9 of11 31. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written Procedure- for inspection and mending and used by relevant associates. [MANUAL] _ _ _ _ Illumination- around 150 foot candle/1000 LUX for inspection area while mending areas are around 100 foot candle/1000 LUX. [LOCATION] _ _ _ _ Defect classification list - examples in area and in use for reference by inspectors. _ _ _ _ Approved samples with acceptable quality standard- approval samples on site and in use, standard method of inspection posted and used [PROCEDURE] _ _ _ _ Mending section - units to be repaired and repaired units are separated in labeled areas. [PROCEDURE] _ _ _ _ Mended Units - Audited to 1.5 AQL to confirm acceptable In-process audits- to 1.5 AQL for quality, measurements. [RECORDS] _ _ _ _ Shade stickers- are used on poly bag and carton to identify shade lots being shipped by style. [PROCEDURE] _ _ _ _ Carton markings are correct to latest manual update and sample cartons for each store & country available for cross reference. [PROCEDURE] _ _ _ _ Carton label placement- guides or templates are used for correct placement of UPC, Pre-Pack, CIB and UCC-128 stickers. [PROCEDURE] _ _ _ _ Security Tape- used to close cartons. [PROCEDURE] _ _ _ _ Housekeeping - appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Written Procedure- for Shipping & Documentation available & used by relevant associates. [MANUAL] _ _ _ _ Packing & Routing Guideline- Current CHS Packing & Routing Guideline available & in use by relevant associates [MANUAL] _ _ _ _ Documentation - complete history of previous 6 months shipping documentation on _ _ _ _ Customs Reference Manual - current & on hand & used for reference [MANUAL] _ _ _ _ Replenishment capability _ _ _ _ Pick & Pack Capability _ _ _ _ TPM Interface _ _ _ _ ASN Capability _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Assigned Representative- Speaking English as point person for all issues. [PERSON] _ _ _ _ Vendor Updates- available on Chico's Extranet is viewed by merchandising as well as production staff. [PROCEDURE] _ _ _ _ Certified Factory Auditor - Identified, trained & responsible to brand for Quality & SOP implementation [PERSONNEL] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating Shipping & Documentation Inspection, Mending and packing area Customer Interface Chico's SOP Manual 06-01-13 Section 2C - Page 10 of11 32. 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score General working conditions- acceptable per CHS requirements [LOCATION] _ _ _ _ Emergency exit & safety precautions - available and clearly visible [PROCEDURE] _ _ _ _ Hazardous materials/chemicals - proper storage & use. Correct Personal Safety _ _ _ _ Overall cleanliness - of washroom, cafeterias and drinking water is acceptable [LOCATION] _ _ _ _ Worker safety measures- are established at all areas for operators, cutters etc [PROCEDURE] _ _ _ _ First Aid Kits - in place & in the work area. Unlocked & fully stocked.[PROCEDURE] _ _ _ _ Personal Safety Equipment- in in use & correct for operation.[PROCEDURE] _ _ _ _ Safety Training - Conducted at least twice per year. [RECORDS] _ _ _ _ Bulletin boards and code of conduct- are posted at important points [PROCEDURE] _ _ _ _ Housekeeping - appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating C-TPAT Security Compliance 1st visit 2nd visit 3rd visit 4th visit Score Score Score Score Perimeter surroundings- is secured and guards present [LOCATION] _ _ _ _ Building access- for visitors controlled and identification tags used [PROCEDURE] _ _ _ _ Vehicle entry access- is controlled at entrance [PROCEDURE] _ _ _ _ Packed goods- are stored in enclosed [LOCATION] _ _ _ _ Security presence- during unloading and loading of packed goods [PROCEDURE] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ SUBTOTAL POINTS 0 0 0 0 SUBTOTAL MAXIMUM POINTS 0 0 0 0 SUBTOTAL RATING 0.0 0.0 0.0 0.0 Comments Supporting Rating _ _ _ _ _ _ _ _ COMMENTS FROM AUDITOR _ _ _ General Compliance Chico's SOP Manual 06-01-13 Section 2C - Page 11 of11 33. _ _ _ _ _ _ _ _ 0.00 0.00 0.00 0.00 NA= Not applicable 0% = No records, procedure or Manual exists 50% = Half the records, procedures or Manuals are in place & being used 100% = Benchmarking Activity - 100% of the time 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 _ _ _ _ _ _ _ _ _ _ _ _ _ _ Chico's SOP Manual 07-01-2012 Section 2C-EO - Page 1 of 1 34. Date Completed Supplier Name Factory Name Address Category % Category % Womens Suiting City Mens Fdn-Bra Chico's No. Employees Kids Fdn-Panty Contact Person Knits Accessory WH|BM Contact Title Wovens Jewelry Telephone Sweater Metal Soma email Leather/Outer % Product % Product % Product % Private $ FOB 1 Public units 2 State period 3 Joint Venture % US 4 Other (explain) % Other 5 (where) 0 Factory Sq Footage Product 1 Product 2 Product 3 Product 4 Available In House Contract Machine Type Qty Capacity/wk Qty Qty Min Pass 2.5 0 Pass 4.0/Fail 2.5 Fail 4.0Qty IncA Converted 0 Workstation U30 D65 Total 0 Insp Sample Qty Lights Model Model Defect Descript. Maj Product Description Make CAD System Make Light Booth Automatic & Specialized Equipment Machine Type Main Brand Machine Type Main Brand Main Brand Fnsh/pkg Emps Shifts Other Basic Equipment Summary QA Emplys Shifts Production Emps Shifts Wet & Dry Process Assembly Modules Avg Ops Assembly Lines Avg Ops Total Average Capacity Linking Machines (if applicable) Average Monthly Capacity Factory Manufacturing Setup Subcontracting Units Name Location Operation Main Products Manufactured: total top 5 Factory Ownership structure Business Volume Top 5 customers No. Contract Workers (all that apply) Country Length of relationship with this factory Business Categories CHS Division Factory Contact to complete shaded areas Chico's SOP Manual 08-01-2012 Section 2C - FP - Page 1 of 1 35. _ _ _ _ _ _ _ 0 0 0 0 0 0 0 0 0.00 0.00 0.00 0.00 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 _ _ _ _ created during new product development & maintained after style/product adoption [RECORDS] _ _ _ _ _ _ _ _ containing brand's approved light sources (U30. D65) _ _ _ _ - used to verify conformity to Brand requirements _ _ _ _ _ _ _ _ _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 Most of the records, procedures, process controls in place and being actively used. Examples of where this score will be used include: a single QA standard and process controls used on all production for all customers. Customers are mostly better brands. Consistent PP meetings and notes - distributed to the production floor. Management actively involved on the production floor. _ Not Applicable. An example of where this score will be used include: Subcontract documentation. If all process are performed in house and no subcontracting is performed, score NA. No records, procedure, process control, or Manual exists. A complete mismatch between expectations and what is the reality in the factory. Examples of where this score will be used include: Customer Base Compatability - low end retailers as the only customer. Security Tape - clear tape used to seal boxes instead of tamper-evident tape. No barcode scanner on site. Mold making performed offsite. No PP meetings at all. Some of the records, procedures, processes, Manuals in place. Examples of where this score will be used include: Some PP meetings held, some notes made. Customer Base compatability - a mix of better brand and low end retailers. Lighting heavily dependent on natural light through factory windows - what will the lighting level be when it is dark outside? QA processes used for specific customers only - not for all customers. _ _ _ Chico's SOP Manual 08-01-2012 Section 2C - DE_Page 1 of6 36. for pre-production process available and used by relevant associates.[MANUAL] _ _ _ _ - done by translating buyers specs to local language for easy communication. [RECORDS] _ _ _ _ - for all styles attended by senior representatives of all involved departments. Minutes & documentation are distributed to all relevant areas. [RECORDS] _ _ _ _ - issued to production with a colored tag for Pilot Run Reference.[PROCEDURE] _ _ _ _ - evaluated, approved prior to production. [RECORDS] _ _ _ _ - evaluated by trained technician. [RECORDS] _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 QA Team reporting to Managing Director _ _ _ _ performed to AQL 1.5 at critical manufacturing points [RECORDS & PROCEDURE] _ _ _ _ -for conducting a final audit to brand's standard is available & used by relevant associates[MANUAL] _ _ _ _ - with fixtures & tools available to conduct final audits. [LOCATION] _ _ _ _ pull test conducted regularly during the day for finished products [RECORDS] _ _ _ _ drop test conducted regularly during the day for finished products [RECORDS] _ _ _ _ crocking test conducted regularly during the day for finished products [RECORDS] _ _ _ _ - around 150 foot candle/1500 LUX with brand's approved light sources as part of the light source [LOCATION] _ _ _ _ - Style file, trim card, standard/band, UPC sheet available to conduct final audit. [RECORDS] _ _ _ _ - available for final audit. [PROCEDURE] _ _ _ _ available and calibrated on a routine basis. [PROCEDURE & RECORDS] _ _ _ _ - are conducted AQL sampling plans for visual, measurement & packing accuracy. [PROCEDURE] _ _ _ _ Observed Quality Level is reported & acceptable _ _ _ _ Used to update management & initiate corrective action _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 Chico's SOP Manual 08-01-2012 Section 2C - DE_Page 2 of6 37. - for Raw Material Management including receiving, inventory, inspection & testing processes & used by relevant associates [MANUAL] _ _ _ _ - For all Raw Material Management activities - receiving report, Inventory movement, etc. [RECORDS] _ _ _ _ in raw material warehouse is adequate at around 50 foot candles or 500 LUX.[LOCATION] _ _ _ _ udit plan. [RECORDS] _ _ _ _ - checked lot to lot. [RECORDS} _ _ _ _ - by lot for products of different shade variations. [RECORDS] _ _ _ _ - to perform basic testing [LOCATION] _ _ _ _ - cross checked during in-house inspection and testing.[ RECORDS] _ _ _ _ - Inventory identification & Locator system [PROCEDURE] _ _ _ _ - Raw materials are stored in an appropriate manner, indoors, packaged, and by lot [PROCEDURE] _ _ _ _ - Raw materials are handled in a manner that ensures purchased quality is maintained. [PROCEDURE] _ _ _ _ - [RECORDS} _ _ _ _ _ _ _ _ appropriate for type of operation _ _ _ _ _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 - for Raw Material Management including receiving, inventory, inspection & testing processes & used by relevant associates [MANUAL] _ _ _ _ - For all Raw Material Management activities - receiving report, Inventory movement, etc. [RECORDS] _ _ _ _ - in warehouse is adequate at around 50 foot candles or 500 LUX.[LOCATION] _ _ _ _ 2.5 AQL sampling plan including Pull, drop & crocking test. [RECORDS] _ _ _ _ - 2.5 AQL sampling plan. [RECORDS] _ _ _ _ - for parts based on after treatment process.[RECORDS] _ _ _ _ - to check accuracy of barcodes of UPC size stickers and pre-pack stickers and scanner is calibrated on a routine basis.[RECORDS] _ _ _ _ - [RECORDS} _ _ _ _ - Quality of bubble wrap, polybags, cartons, etc. checked to 2.5 AQL sampling plan [RECORDS] _ _ _ _ of price labels like pre-pack /bulk ID stickers. Correct equipment & systems [LOCATION] _ _ _ _ appropriate for type of operation _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 Chico's SOP Manual 08-01-2012 Section 2C - DE_Page 3 of6 38. for Casting Planning & materials allocation available & in use by relevant associates. [MANUAL] _ _ _ _ for Casting quality and production controls available and used by relevant associates.[MANUAL] _ _ _ _ - Materials allocated to casting ticket by lot & piece number [RECORDS] _ _ _ _ -yield, orientation, location of pieces, ID, etc. reviewed & approved by casting room manager prior to use. [PROCEDURE] _ _ _ _ over casting machine and checking table is 100 foot candles or 1000 LUX.[LOCATION] _ _ _ _ - in-house rubber mold casting for full production _ _ _ _ in-house injection mold casting capability for full production _ _ _ _ in-house polishing and tumbling capability for full production _ _ _ _ - in place for all equipment. [RECORDS] _ _ _ _ Issued material compared to the actual material pulled for the casting [PROCEDURE] _ _ _ _ t- performed & documented by QA team.[RECORDS] _ _ _ _ - appropriate for type of material used. [PROCEDURE] _ _ _ _ procedure in place to maintain quality & quantity integrity for bulk casting parts.[PROCEDURE] _ _ _ _ appropriate for type of operation _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 - around 100 foot candle/1000 LUX over work area, and around 150 foot candle/1500 LUX over inspection table. Task Lights where required [LOCATION] _ _ _ _ & routine cleaning procedures in place.[RECORDS] _ _ _ _ - posted at each machine signed by operator, QA, and line supervisor. [PROCEDURE] _ _ _ _ At each operation, describing method & quality requirements [PROCEDURE] _ _ _ _ used to mark critical placements.[PROCEDURE] _ _ _ _ - available for supervisors use to assign operators. _ _ _ _ - Utilized in production _ _ _ _ by operator available and checked by supervisors & QA at least 4 times daily.[RECORDS] _ _ _ _ Measured & reported & appropriate for factory {RECORDS] _ _ _ _ - in place for each line to do start up of production. [PERSONNEL] _ _ _ _ - embedded in the line to prevent irreparable product.[RECORDS] _ _ _ _ - performed to AQL 1.5 prior to release to next process.[RECORDS] _ _ _ _ pull test conducted regularly during the day [RECORDS] _ _ _ _ drop test conducted regularly during the day[RECORDS] _ _ _ _ crocking test conducted regularly during the day [RECORDS] _ _ _ _ is done in a proper manner by production lot number, etc. to next process. [PROCEDURE] _ _ _ _ Level is appropriate to maintain efficiency & quality [LOCATION] _ _ _ _ temperature is comfortable, machines are guarded. [LOCATION] _ _ _ _ appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 Chico's SOP Manual 08-01-2012 Section 2C - DE_Page 4 of6 39. - for finishing quality, production & maintenance controls available & used by relevant associates. [MANUAL] _ _ _ _ Current CHS Packing & Routing Guideline available & in use by relevant associates [MANUAL] _ _ _ _ - 100 foot candle/1000 LUX while inspection areas have brand's approved light sources lights of 150 foot candle/1500 LUX. [LOCATION] _ _ _ _ in place for all equipment. [RECORDS] _ _ _ _ - Hang tags, UPC stickers etc. are distributed & stored by style, size and color so as to prevent mix ups during packing. [PROCEDURE] _ _ _ _ - to 1.5 AQL for quality, measurements & packing accuracy. [RECORDS] _ _ _ _ - used to close poly bags and approved bubble bag is used in packing [PROCEDURE] _ _ _ _ are correct to latest manual update and sample cartons for each store & country available for cross reference. [PROCEDURE] _ _ _ _ t- guides or templates are used for correct placement of UPC, Pre- Pack, CIB and code-128 stickers. [PROCEDURE] _ _ _ _ - used to close cartons. [PROCEDURE] _ _ _ _ appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 - for Shipping & Documentation available & used by relevant associates. [MANUAL] _ _ _ _ Current CHS Packing & Routing Guideline available & in use by relevant associates [MANUAL] _ _ _ _ complete history of previous 6 months shipping documentation on file & available for reference. [RECORDS] _ _ _ _ complete with verification of production checklist. [RECORDS] _ _ _ _ current & on hand & used for reference [MANUAL] _ _ _ _ _ _ _ _ _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 - Speaking English as point person for all issues. [PERSON] _ _ _ _ available on Chico's Extranet is viewed by merchandising as well as production staff. [PROCEDURE] _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 Chico's SOP Manual 08-01-2012 Section 2C - DE_Page 5 of6 40. - acceptable per CHS requirements [LOCATION] _ _ _ _ - available and clearly visible [PROCEDURE] _ _ _ _ - proper storage & use. Correct Personal Safety Equipment is at work areas. Information & operation training conducted at least annually. [RECORD & LOCATION] _ _ _ _ - of washroom, cafeterias and drinking water is acceptable [LOCATION] _ _ _ _ - are established at all areas for operators, cutters etc. [PROCEDURE] _ _ _ _ in place & in the work area. Unlocked & fully stocked.[PROCEDURE] _ _ _ _ in in use & correct for operation.[PROCEDURE] _ _ _ _ Conducted at least twice per year. [RECORDS] _ _ _ _ and code of conduct- are posted at important points [PROCEDURE] _ _ _ _ appropriate for type of operation - clean of dirt & excessive waste [LOCATION] _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 - is secured and guards present [LOCATION] _ _ _ _ for visitors controlled and identification tags used [PROCEDURE] _ _ _ _ - is controlled at entrance [PROCEDURE] _ _ _ _ - are stored in enclosed [LOCATION] _ _ _ _ - during unloading and loading of packed goods [PROCEDURE] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 0 0 0 0 0 0 0 0 0.0 0.0 0.0 0.0 _ _ _ _ _ _ _ _ _ _ _ Chico's SOP Manual 08-01-2012 Section 2C - DE_Page 6 of6 41. _ _ _ _ _ _ _ _ 0.00 0.00 0.00 0.00 NA= Not applicable 0= No records, procedure, process control, or Manual exists. 5= Some of the records, procedures, processes, Manuals in place. 10= Most of the records, procedures, process controls in place and being actively used. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 _ _ _ _ _ _ _ _ _ _ _ _ _ _ Chico's SOP Manual 08-01-12 Section 2C-EO - Page 1 of 1 42. Chicos FAS SOP Manual 07-01-11 Section 2D Page 1 of 3 Standard of Execution Factory Technical Evaluation The Purpose of this SOE is to document the Factory Technical Evaluation (FTE) process. The FTE is a detailed, interactive, factory tour designed to assess the processes and controls in place at the factory to predict the likelihood that product will meet Brand expectations. FTEs are conducted through one of three channels Third Party (BV) Approved self assessment Chicos FAS SOPs/QA Cross Functional Team Members (CFT) Sourcing Operations/ Quality Assurance (SOPs) Global Compliance (GC) Chicos FAS Global Sourcing (GS) Process Overview: (Process Flow) Request for new factory through existing vendor or new vendor, by a Chicos FAS Merchant/Product Development/ Global Sourcing Team member. Sourcing approves start of process, forwards vendor contact information to GC, copy SOPs. Global Compliance requests Documents from Vendor with copy to SOPs Team Vendor replies to GC with all necessary documents. Vendor Profile Factory Profile C-TPAT Security Packet W-9 (domestic vendors only) Vendor Certification Signature Page After GC receives all documentation, the GC audit process is initiated with BV, copy to SOPs. SOPs initiates the FTE process. For Third Party FTEs, the SOP/QA Team forwards an electronic request to BV for FTE. For Self-Assessment, the FTE will be submitted with the activation paperwork. For Chicos FAS SOPs FTE, SOPs team will complete the FTE report. 43. Chicos FAS SOP Manual 07-01-11 Section 2D Page 2 of 3 Upon completion of Factory Technical Evaluation, SOPs reviews and makes rating recommendation. Review and Rating of Factory Technical Evaluation (FTE) Upon receipt of FTE the SOP/QA team will review and evaluate the FTE, assigning one of the following ratings: Acceptable Activation with no further follow up required. FTE and Continuous Improvement Plan (CIP) blank document is sent electronically to Sourcing team for distribution to vendor/factory. CIP document is to be completed by the vendor/factory and returned to the Sourcing team within 7 days. CIP is filed electronically in Global Compliance database along with FTE. Needs Improvement Activation with Corrective Action Plan (CAP) FTE and CAP blank document is sent electronically to Sourcing team for distribution to vendor/factory. CAP document is to be completed by the vendor/factory and returned to the Sourcing team within 7 days. CAP is reviewed by SOPs team for completeness and timeliness. CAP is filed electronically in Global Compliance database along with FTE. Unacceptable with Production Permitted (VP SOPs approval required) Rating of Unacceptable assigned and FTE and CAP blank document is sent electronically to Sourcing team The Sourcing team reviews and decides if the business requirement outweighs the risk. Key partners in this review must include SOPs team members. If the decision is to allow the factory to attempt to correct the areas of concern, the FTE & CAP blank document is sent to the Vendor/Factory for completion. CAP document is to be completed by the vendor/factory and returned to the Sourcing team within 7 days. CAP is reviewed by SOPs team for completeness and timeliness. If CAP is acceptable, recommendation is made to VP Sourcing Operations to activate as Unacceptable with Production permitted on strength of CAP. Activated only after CAP is received, reviewed and with approval from VP Sourcing Operations or SVP Production, Sourcing, & Quality Assurance. Activated with 60 to 90 day 3rd Party FTE follow up required. To be ordered at time of initial review. 3rd Party followup FTE requirement may be waived by Director of Sourcing Operations. CAP is filed electronically in Global Compliance database along with FTE. Unacceptable Do Not Activate 44. Chicos FAS SOP Manual 07-01-11 Section 2D Page 3 of 3 FTE and CAP blank document is sent electronically to Sourcing team for distribution to vendor/factory for the factorys use. No followup FTE will be scheduled. FTE is filed electronically in Global Compliance database along with CAP if received from factory. Communication to Vendor of Factory Technical Evaluation (FTE) Rating Global Sourcing will communicate the final status of factory activation status to the vendor. Evaluation ratings of FTE should be communicated in a timely manner (1 week) upon receipt to CFT. SOP/QA updates Database w/ Download results of FTE audit. 45. Chicos SOP Manual 08-01-08 Section 3 - Page 1 of 1 Fabric and Garment Performance Requirements 1 Introduction 2 Fabric Development and Testing Procedures Fabric Development 2.1 Fabric Specifications 2.2 Fabric & Garment Testing 2.3 Component Testing 2.4 Responsibilities for Testing 3 Fabric Inspection 3.1 Background 3.2 Responsibility for Fabric Inspection 3.3 Fabric Inspection Guidelines (Mills) 3.4 Assessment of Shading Characteristics 4 Testing Facilities 5 Fabric & Garment Performance Standards 5.1 Testing Matrix 5.2 Fabric / Garment Performance Requirements 5.3 Garment Component Testing 1. INTRODUCTION Chicos incorporates two models to produce garments for our customer. The traditional model has been for our merchant and product development groups to work through a vendor base to design and create new product. In this model the vendor is responsible for the selection and sourcing of the fabric, trims, and production of the garments and presenting a finished garment to our brand. This model will be used only on a limited basis for unique developments and speed. The process outlined in this manual will insure that the quality and performance requirements of the garment are met when presented to the Brand. The current vision for the Brand is for Chicos internal Design and Technical Departments to design the garment, select the fabrics and trims, create the garment patterns, and work through a vendor base to produce garments to our specifications. In this model we select the raw materials and mills that our vendors must use. We support the vendor base developing good working relationships with our mill base to insure that fabric issues are addressed and resolved before garment delivery is compromised. Each mill that is selected will be evaluated to insure that the mill has the systems and capability to produce fabric to our quality, performance, and delivery requirements. This section outlines the process that is used for developing and approving new fabrics, fabric performance and testing protocol, fabric quality assessment, garment and testing protocol, and approved laboratories in which testing can be done. The acceptance of an order from Chicos indicates that you as a partner are aware of these performance criteria. In addition, it implies that you will supply materials that will meet or exceed these standards. Any exception from these published standards must be obtained in writing from the VP of Fabric Sourcing & Technology of Chicos. 46. Chicos SOP Manual 07-24-12 Section 3A - Page 1 of 13 The selection of fabric plays a key role in the performance and aesthetic character of a garment. Fabric selection and development will be directed through the Director of Fabric Development. To have a fabric adopted, the mill, agent, or supplier must demonstrate that all fabrics selected meet the Brand expectations for appearance, hand, and performance. This is accomplished by: Providing a representative sample of the fabric quality that can be established a Fabric Standard. Completing a Fabric Data Sheet (FDS) that provides an analysis of the fabric that results in an accurate Fabric Technical Specification. (See Appendix 3D) Providing a preliminary mill Test Report on the fabric to insure conformance to the Performance Specifications outlined within this Manual. Fabric technical specifications are an essential ingredient in controlling product quality. They provide a reference document between the fabric mill, garment producer, and Chicos. They can be used to assess the conformance of the delivered product to the agreed specification. It will be used to insure the consistency of fabric being purchased and delivered should the fabric be sourced by several mills when producing fabrics in a different region of the world. The Fabric R&D Department is responsible for researching and developing fabrics and yarns that are in alignment with the aesthetic direction of design; in the price range needed by the merchants; with the performance characteristics necessary to produce a garment that meet our customers expectations. The Fabric R&D Department works with mills, agents, contractors, retail stores, antique boutiques, trade shows, fabric fairs, etc. to understand the fashion trends of market and to begin the selection and development process of fabrics that are brand right for the business. Once a