Bangladesh – German Development Cooperation

Factory Monitoring

December 2007
PROGRESS (promotion of social, environmental and production standards in the ready-made garment sector) is a joint program of the Bangladesh
Ministry of Commerce and the German Federal Ministry of Economic Cooperation and Development (BMZ), implemented by GTZ.
Address: House 10 C, Road 90, Gulshan 2, Dhaka 1212, Bangladesh. Tel: +880 2 9887567, Fax: + 88028823099, E-mail: progress@gtz.de, 1 Website: www.gtz.de
1 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Overview

Preparation steps
Monitoring steps
• Agenda for introductory meeting
• Examination of Documents
• Walkthrough
• Workers’ Interview
• CAP Preparation
• Sample of Corrective Action Plan
• Exit Meeting

2 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring

Preparation Steps

• Define scope of work;

• Select team (team composition, expertise, etc.);
• Assign jobs (who does what, how, when);
• Schedule program (date of visit, time, etc.);
• Make list of kits, tools needed;
• Arrange logistic supports.

3 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring

Preparation Steps

• Update team;
• Collect documents (monitor’s checklist, CAP / reporting formats, copy of relevant
laws, etc.);
• Arrange monitoring equipments, such as camera, light meter, sound meter,
calculator, etc.
• Communicate with auditee factory.

4 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring

AGENDA FOR INTRODUCTORY MEETING

• Introduce the team;

• Invite management to briefly present the factory;
• Explain the goal & purpose of the factory monitoring;
• Explain monitoring procedure & estimated time;
• Ask permission for taking photos, workers’ interviews, guides, etc.
• Extend invitation to join the exit meeting.

5 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring
Examination of Documents

• Business licenses / permits, building design approval, fire,

boiler certificates, etc.

• Company’s social and other policies & procedures;

• Training records on health & safety, recruitment, wages,

benefits, disciplinary procedure etc.

• Records on leave (all types of leave including maternity

benefit), production, accident, medical treatment, broken
needles, fire drill, evacuation drill, etc.

• Records on working hours;

• Personnel files (ID card, employment contracts including

those of security guards, age docs, leave documents,
disciplinary actions, etc.);

• Salary sheets, pay slips, overtime sheets etc.

6 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring
Walkthrough

During walkthrough an auditor needs to check:

• Child labour / young worker;

• Documents / registers used by the factory;
• Occupational health, safety & welfare issues;
• Environmental management systems;
• General health condition of the workers;
• Harassment / Abuse / Discrimination, if it happens;
• Disciplinary system;
• Forced labour.

7 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring

Workers’ Interview

Interviews mainly focus on:

• Workers’ knowledge about relevant laws, company rules, compliance issues. wage,
working hours, overtime calculation, paid leaves & company rules, employment contract,
factory management treatment, etc.
• Incidents of violence, sexual harassment, or disciplinary practices.

8 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring

CAP Preparation

CAP preparation needs to take into account:

• Non conformity has to be described in a precise manner;

• Reference of non conformity should be accurate;
• Recommendation should be comprehensible and exactly related to the non conformity;
• CAP must be signed by the factory management, if agreed.

9 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Sample of Corrective Action Plan

CORRECTIVE ACTION PLAN

Factory: ABC Knitwears Ltd. Date of inspection:15 July 2007

Issue Recommendation Completion date

Reference: Section of It is recommended that the Within 16 July

Bangladesh Labour Law 2006.
It was noted through workers’
interviews and documents’
review that the workers of the
cutting section had worked 16
hours per week in March 2007.
Reference: Section of
Bangladesh Labour Law 2006.
It was noted through
walkthrough that two fire
extinguishers in the sewing
section of 2nd floor were expired
on 14 March 2007.
10
factory should not exceed 2007.
12 hours of overtime per
week.
It is recommended that the Within 16 July
factory should always keep 2007.
all the fire extinguishers
functional to use in case of
emergency.
PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

Factory Monitoring

Exit Meeting

At the end of the monitoring visit, an exit meeting

has to be held with the factory management:

•Positive aspects are to be appreciated first;

•Corrective Action Plan (CAP) to be discussed and usually agreed upon;
•A time limit for taking corrective action also to be agreed upon;
•Thank the management for all their cooperation and support.

11 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group
 Bangladesh – German Development Cooperation

THANK YOU

12 PROGRESS’ Component on Social and Environmental Compliance, implemented by GFA Consulting Group