Vendor Factory Evaluation Program (VFE + FE)

Vendor Factory Evaluation (VFE) is a tool used by suppliers to monitor and review a factory's ability to meet its expected goals. VFE concentrates on supplier and quality management, production control and processes, production inspection plans, control of non-conforming materials, corrective actions, pre-audit, setup and maintenance, location conditions, social compliance, CTPAT as well as production areas that focus on processes and products as they are applied to production activities under basic conditions.

Scope:

VFE will be employed by the supplier as follows:

1) Any time a new plant without an existing VFE will be considered to be included in the target plant matrix. The use of VFE is compulsory and must comply with the TCPS factory review required.

"The new factory is defined as a factory without a current FE (within the past 12 months) on file with the goal:

A new factory must have at least 3 months of manufacturing records and may include any of the following:

• Initial review of factory
• A new factory enters the target matrix
• Supplier is erecting a new building and it's a new BPM ID.
• The production line will start producing a different type of product

Note: "New ownership of existing factory does not require new FE"

2) Any time a factory has an additional product category besides ones are being manufactured at the factory, the use of target VFEs is necessary and must comply with the TCPS factory review required.

3) Any time an existing factory enhance their production capacity which excesses the four existing factories in a production complex, the use of target VFEs is required and must comply with the required TCPS factory assessment.

4) As a tool to conduct an assessment, monitoring and maintaining the continuous plant performance, sellers can use VFE at any time and do not need to submit this VFE to TCPS if they are allowed to use for tracking or maintaining factory performance.

Roles and responsibilities

Supplier:

• Suppliers need to complete a VFE review honestly, carefully and accurately.

The goal requirement is that the supplier promotes continuous improvement through the regular and continuous use of VFE and the TCPS FE CAP support. If there is a difference of 20% in the VFE and FE results, suppliers may incur a considerable reimbursement, according to QPS HQ QA policies.

The TCPS field will confirm and validate the information in TCPS conducting the FE.