SUMMARY REPORT Q1/2014
Index of Contents:
Supplier uptake update Comments on program progress (Q1 ’14) Progress status overview on supplier uptake Work-plan completion vs work-plan agreed timelines by supplier Program trend analysis KPI’s Worker satisfaction index Worker management dialogue maturity index
2
Supplier Uptake Progress Overview of Supplier On-boarding Status by Brands Program
Dell
HP
Philips
Apple
Nokia
TOTAL
48 + 7
11
7
15 + 7
12
3
Contract signed (Move to implementation)
48 + 7
11
7
15 + 7
12
3
Pending
0
0
0
0
0
0
EPA in implementation
0
0
0
0
0
0
EPA in preparation (newly onboard)
0
0
0
0
0
0
Philips
Apple
Nokia
Number of Fast Track Program suppliers is in blue lettering
Geographic Location by Brands Program
Dell
HP
TOTAL
48 + 7
11
7
15 + 7
12
3
Guangdong Area
37 + 4
11
6
8+4
9
3
Shanghai Area
10 + 3
0
1
6+3
3
0
1
0
0
1
0
0
Other
Number of Fast Track Program suppliers is in blue lettering
3
Total Factories on board (by Mar. 31)
Geographic location, total factories (by Mar. 31)
Total=55
Total=55 3
12
11
13
1
7 41
22 Dell
HP
Philips
Apple
Nokia
South
Shanghai Area
Other
Comment on Progress Over the last three months, the program has continued to progress, with 47 suppliers implementing Work Plans and 8 suppliers conducting/preparing Entry Point Assessments. However, due to the Chinese New Year seasonal holidays at the end of January, some training activities had to be rescheduled after holiday, when the workers returned in February. There now are currently 55 suppliers in total in the program, including the new ‘Fast Track’ factories. IDH launched the ‘Fast Track’ program which will be conducted as a condensed program in 12 months (vs 18 months), and this has extended the availability window for factories to join the program into Q2’14. Among the current 55 suppliers, there are 7 suppliers enrolled in the ‘Fast Track’ program.
Impact Review Meeting During Q1 IDH focused on following up from the ‘IMPACT’ event, held at the supplier meeting in Shenzhen in Dec ’13. The IDH team prepared and distributed a summary of the best practices and impact report, showing where we have currently been able to identify the emerging signs of impact at the factories as a result of the IDH program and curriculum. The impact analysis is focused on measuring performance improvement in areas related to improving worker satisfaction, worker / management dialogue maturity and overall productivity (related to the ROI model produced in 2013). The report also focuses on analysis & correlation of data collected from the factories, showing comparative benchmarking and identifying outliers amongst the IDH member factories. The initial impact report was shared with the IDH steering group and reflection group during Q1. Key Focus Points: 1) The program will close for new factories to join (including the Fast Track) during Q2’14. We are now engaged in the final push for new entrants to the Fast Track program. 2) Several of the brands in the IDH program expressed an interest in developing the impact assessment report and building on the data analysis to understand the potential for further improvements.
4
Progress Status – Summary of the status of the active suppliers in the program and the WMD service providers they are working with. No.
By Brand
1
D1
2
D2
3
D3
4
D4
5
D5
6
D6
7
D7
8
D9
9
D10
10
D11
11
D12
12
H1
13
H2
14
H4
15
H5
16
H8
17
H9
18
H10
19
P3
Status
EPA
Implementation Starting Point
Work Plan
KPI Collection
Involving WMD SPs
On Track
Completed
Jan. 2013
On Track
Submitted by Mar. 2014
TUV, TIMELINE
On Track
Completed
Jan. 2013
On Track
Submitted by Dec. 2013
TIME LINE
On Track
Completed
Jan. 2013
On Track
NOT SUBMITTED
CLSN, TIMELINE
On Track
Completed
Jan. 2013
On Track
Submitted by Jan. 2014
TIMELINE
On Track
Completed
Jan. 2013
On Track
NOT SUBMITTED
LESN, TIMELINE
On Track
Completed
Mar. 2013
On Track
Submitted by Dec. 2013
TIMELINE
On Track
Completed
Oct. 2013
On Track
NOT SUBMITTED
TIMELINE
Move to new location On Track
Re-doing EPA
May 2014
To be revised
-
TBD
Completed
Jan. 2014
On Track
NOT SUBMITTED
Taos
On Track
Completed
Jan. 2014
On Track
NOT SUBMITTED
Taos
On Track
Completed
Jan 2014
On Track
NOT SUBMITTED
TUV
On Track
Completed
Jan. 2013
On Track
Submitted by Mar. 2014
TUV
On Track
Completed
Jan. 2013
On Track
Submitted by Mar. 2014
Timeline
On Track
Completed
Sep. 2013
On tract
Submitted by Mar. 2014
Timeline
On Track
Completed
Jun. 2012
On track
NOT SUBMITTED
TUV
On Track
Completed
Oct. 2013
On track
Submitted by Mar. 2014
TUV
On Track
Completed
Jan. 2014
On track
NOT SUBMITTED
Taos
On Track
Completed
Jan 2014
On track
NOT SUBMITTED
TBD
Re-joined
Completed
Aug. 2013
On Track
Submitted by Mar. 2014
TAOS
5
20
P5
21
P6
22
P7
23
P8
24
P9
25
P10
26
P11
27
P12
28
P13
29
P14
30
P15
31
P16
32
P17
33
P18
34
A1
35
A2
36
A3
37
A4
38
A5
39
A6
40
A7
41
A9
On Track
Completed
Jan. 2013
On Track
Submitted by Mar. 2014
Timeline
On Track
Completed
Mar. 2013
On Track
Submitted by Feb. 2014
TUV
On Track
Completed
Mar. 2013
On Track
Not Submitted
TUV
On Track
Completed
Mar. 2013
On Track
Submitted by Feb. 2014
LESN
On Track
Completed
Sep. 2013
On Track
Submitted by Feb. 2014
TUV
On Track
Completed
Oct. 2013
On Track
Submitted by Mar. 2014
TUV
On Track
Completed
Oct. 2012
On Track
Submitted by Feb. 2014
SUSA
On Track
Completed
Oct. 2013
On Track
Not submitted
TUV
On Track
Completed
Oct-. 2013
On Track
Submitted by Mar. 2014
E&T
On Track
Completed
Nov. 2013
On Track
Not Submitted
BLC
On Track
Completed
Oct. 2013
On Track
Submitted by Mar. 2014
BLC
On Track
Completed
Oct. 2013
On Track
Not Submitted
TAOS
Withdrawn
Completed
Pending
-
-
E&T
On Track
Completed
Mar. 2014
On Track
Submitted by Mar. 2014
E&T
On Track
Completed
Mar. 2013
On Track
Submitted by Mar. 2014
LESN
On Track
Completed
Mar. 2013
On Track
Submitted by Mar. 2014
LESN
On Track
Completed
Mar. 2013
On Track
Submitted by Mar. 2014
CLSN
On Track
Completed
Mar. 2013
On Track
Submitted by Mar. 2014
LESN
On Track
Completed
Aug. 2013
On Track
Submitted by Mar. 2014
TAOS
On Track
Completed
Oct. 2013
On Track
Submitted by Mar. 2014
Timeline
On Track
Completed
Oct. 2013
On Track
Not submitted
Timeline
On track
Completed
Oct. 2013
On Track
Submitted by Mar. 2014
Taos
6
42
A10
43
A11
44
A12
45
A13
46
N1
47
N2
48
N3
On Track
Completed
Jan. 2014
On Track
Submitted by Mar. 2014
E&T
On Track
Completed
Jan. 2014
On Track
Submitted by Feb. 2014
BLC
On Track
Completed
Jan. 2014
On Track
Not submitted
Timeline
On Track
Completed
Mar. 2014
On Track
Submitted by Mar. 2014
BLC
On Track
Completed
Completed
On Track
Not submitted
TBD
On Track
Completed
Completed
On Track
Submitted by Mar. 2014
Taos
On Track
Completed
Completed
On Track
Not submitted
Timeline
7
Program Status Overview: Work Plan Completion VS Work Plan Timeline Summary showing the progress of each supplier on their WMD and Non-Dialogue WP (work plan) vs the agreed project timeline from the EPA (Entry Point Assessment).
N1 A10 A9 A7 A6 A5 A4 A3 A2 A1 D12 D11 D10 D9 D7 D6 D5 D4 D3 D2 D1 H10 H9 H8 H5 H4 H3 H2 H1 P17 P16 P15 P14 P13 P12 P11 P10 P9 P8 P7 P6 P5 P3
Nok ia
Apple
Dell
HP
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline WP Timeline
W-M Dialogue
Non-Dialogue
WP Timeline
8
Trend Analysis - KPI’s measuring worker and productivity data to indirectly link social factors with business performance. Worker Turnover (%)
Program trend overall is relatively flat, however the average turnover peak in Q1’14 (CNY) reduced compared to Q1’13. Underlying (seasonally adjusted) turnover is decreasing slightly overall, if we adjust out the peaks in CNY.
Worker Turnover
Program Average
Rework Rate (%)
Program Leader
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Oct-12
Nov-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
35 30 25 20 15 10 5 0
Linear (Program Average)
Program trend is reducing overall. However, there is a spike in Q1’14, possibly related to increased worker turnover in Jan (CNY).
Rework Rate (%)
Program Average
Program Leader
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00
Linear (Program Average)
9
Average Monthly Net Wages (RMB)
Program trend is increasing slowly which mostly reflects the adjustments of legal minimum wage. Q1’14 wages are lower due to the seasonal reduction in working hours, as in previous years, but on average wages flat vs 2H’13.
Average Monthly Net Wages
Program Average
Average Weekly Working Hour (Hours)
Program Leader
Mar-14
Jan-14
Feb-14
Dec-13
Nov-13
Oct-13
Sep-13
Jul-13
Aug-13
Jun-13
May-13
Apr-13
Feb-13
Mar-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
5,300 4,800 4,300 3,800 3,300 2,800 2,300 1,800 1,300
Linear (Program Average)
Program working hours are showing a marginally increasing trend. Q1’14 reflects the seasonal reduction for the CNY holiday, but the adjusted Q1 working hours are flat compared to 2H’13.
Average Weekly Working Hours 60 50 40 30 20 10
Seasonal Adjusted Average
Program Average
Program Leader
Linear (Program Average)
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
0
10
Program average and leader KPI data points KEY PERFORMANCE INDICATORS – Comparative Analysis *Compared to last quarter data in bracket Factory Name
Program Average
Leader
WMD Benchmarks (Non-rep comm systems) in EPA
6.08
9.20
WMD Benchmarks (Rep systems) in EPA
4.29
6.50
6.44
8.44
# of work-related injuries
0.59
0.00
# of days lost due to work-related injuries
16.72
0.00
Average weekly working hours in the calendar month
48.60
29.70
Average # of rest days
6.83
17.00
307,535.60
N/A
17.45
0.00
Average monthly net wage (RMB)
2,579.54
3,784.00
Average monthly gross wage (RMB)
2,786.25
4,102.00
Ratio of OT Premium to Gross Wages
1,631.42
N/A
1st quartile of monthly net wage (RMB)
2,233.74
4,495.50
2nd quartile of monthly net wage (RMB)
2,626.93
3,938.00
1st quartile of monthly gross wage (RMB)
2,398.51
4,455.00
2nd quartile of monthly gross wage (RMB)
2,822.71
4,450.00
303.21
0.00
28533.36
506448.48
Rework Rate (%)
2.92
0.00
Turnover (%)
16.89
5.57
Worker-Management Dialogue
Worker Satisfaction Worker Satisfaction Indicator from EPA Working Condition
Total monthly working hours in the calendar month % of workers working more than 60h in the week
Environmental Condition Kilowatts used per product unit Business Impact Unit Produced Per Hour (UPPH)
11
Worker Satisfaction Index Comparison by Supplier: Measured at Entry Point Assessment & repeated at Exit Point Assessment (no suppliers completed exit point as yet). Directly measuring program impact on worker satisfaction before & after.
Factory Name
Below Average Above Average 1 A1 2 3 4 5 6 7
A2 A3 A4 A5 A6 A7
8 9 10 11 12 13
A8 A9 A10 A11 A12 A13
14 15 16 17 18 19
D2 D3 D4 D5 D6 D7
20 21 22 23 24 25
D8 D10 D11 D12 H1 H2
26 27 28 29 30 31
H3 H4 H5 H6 H8 H9
32
H10
Overall Scale (1-10)
Working Relationships (0-100)
Wage Fairness and Transparency (0-100)
Working Hours (0-100)
Facilities (0-100)
Health and Safety (0-100)
Career/Personal Development (0-100)
6.44
68.59
63.07
41.01
57.76
65.49
63.35
6.34
64.53
63.67
59.93
56.09
56.22
57.55
5.67 6.33 6.30 6.87 6.46 6.72 6.88
63.18 68.08 67.59 66.22 65.07 68.65
63.92 67.81 60.22 67.52 58.09 63.94
23.40 37.09 24.95 64.75 53.19 46.79
46.57 58.94 65.44 61.85 51.23 55.53
59.08 60.23 69.91 67.76 66.93 70.14
55.00 64.09 65.27 63.16 64.24 73.02
65.16 62.74 65.91 63.01 67.38 68.92
64.75 60.70 57.50 52.56 66.58 59.97
44.92 54.30 60.08 15.47 27.74 18.41
59.79 46.64 51.85 31.41 60.36 59.75
70.75 67.19 64.18 64.07 57.91 61.81
65.50 58.02 52.05 59.73 61.76 66.24
77.88 62.87 69.84 64.40 68.47 64.67
77.76 54.49 70.50 54.23 73.58 54.55
58.23 31.70 45.38 29.25 46.17 36.55
69.59 51.42 61.80 49.32 59.81 44.07
82.46 57.82 71.74 45.56 70.08 50.78
72.09 55.00 59.78 52.46 62.33 59.04
63.01 66.70 67.00 65.76 65.37 66.65
51.36 59.74 64.12
41.54 45.87 48.46 56.02 49.82 60.33
61.92 63.46 57.35 60.68 45.31 74.90
58.28 59.31 64.07
56.34 54.09 60.48
27.24 33.33 20.41 18.29 31.48 28.14
65.69 62.70 63.08 66.59 79.48 62.73 69.36
72.33 57.77 57.64 70.02 72.83 64.17
48.45 59.64 33.67 41.89 64.80 13.78
66.57 56.87 56.27 62.65 71.12 43.65
60.71 59.87 61.18 73.20 81.50 58.04
51.46
25.73
39.59
43.85
53.91 52.70 45.23 64.38 80.41 53.11 62.85
6.70 6.27 5.31 6.12 6.03 7.55 5.71 6.70 5.40 6.70 5.68 5.53 5.95 5.83 5.71 5.55 6.22 6.53 6.21 5.68 6.70 7.73 5.44 5.37
56.66 57.72 57.80
12
33
N1
6.83
67.39
59.71
60.31
65.09
65.19
62.99
34
N2
6.02
63.84
57.56
51.99
36.45
63.11
58.58
35 36 37 38 39 40
N3 P3 P4 P5 P6 P7
7.36
75.86 78.62 83.73 66.39 67.32 70.20
70.79 77.24 83.05 65.29 65.92 71.44
50.43 77.25 67.11 10.26 28.97 59.06
71.64 72.29 80.70 64.51 61.34 60.51
82.54 85.56 90.84 67.88 64.49 77.69
76.43 70.55 77.97 61.66 58.33 63.41
41 42 43 44 45 46
P8 P9 P10 P11 P12 P13
65.26 78.41 69.91 67.91 70.67 67.80
48.72 71.11 40.65 53.38 67.11 47.05
17.89 38.33 30.08 31.08 37.74 36.86
46.52 85.65 50.97 64.38 62.04 41.49
41.99 66.11 62.97 49.62 79.21 48.44
63.03 79.17 66.55 65.56 67.74 61.14
47 48 49 50 51
P14 P15 P16 P17 P18
65.60 77.96 85.78 73.89 73.00
61.50 77.20 83.47 68.63 62.22
39.47 57.74 68.13 35.74 67.87
45.74 67.57 92.41 62.27 74.07
63.68 74.78 90.41 71.03 77.78
64.33 77.62 86.74 66.51 69.63
8.00 8.27 6.04 6.20 7.04 5.26 7.33 6.06 7.01 6.74 6.23 6.23 7.48 8.44 6.55 7.38
Worker Management Dialogue Maturity Index Comparison by Supplier: Measured at Entry Point Assessment & repeated at Exit Point Assessment (no suppliers completed exit point as yet). Directly measuring program impact on WMD before & after.
Supplier/Factory Name
Above Average Below Average
Non-rep comm systems overall (1~10)
Rep systems System & roles (0~20)
Representation & participation (0~20)
6.08
16%
32%
16%
4.29
Resources (0~20)
Overall (1~10)
1
A1
4.80
15%
50%
15%
5.25
2
A2
5.60
25%
30%
25%
6.00
3
A3
5.60
15%
45%
15%
4.75
4
A4
6.00
10%
15%
10%
3.00
5
A5
6.40
15%
15%
15%
4.25
6
A6
5.20
15%
35%
15%
4.00
7
A7
6.40
15%
35%
15%
4.50
8
A8
6.80
15%
40%
15%
4.75
9
A9
5.60
10%
20%
10%
2.75
10
A10
6.80
15%
35%
15%
4.00
13
11
A11
4.00
25%
55%
25%
5.75
12
A12
6.80
20%
50%
20%
6.50
13
A13
6.00
10%
25%
10%
3.75
14
D6
6.40
15%
60%
15%
5.25
15
D7
4.40
20%
45%
20%
6.25
16
D8
4.00
15%
30%
15%
3.50
17
D9
4.40
20%
20%
20%
3.25
18
D10
5.20
15%
30%
15%
4.50
19
D11
5.60
15%
40%
15%
4.50
20
D12
4.40
15%
40%
15%
4.75
21
H6
6.40
20%
45%
20%
6.00
22
H7
5.20
15%
40%
15%
4.75
23
H8
8.80
15%
30%
15%
3.75
24
H9
5.20
10%
20%
10%
2.50
25
H10
4.80
15%
15%
15%
2.75
26
N1
7.20
20%
50%
20%
5.75
27
N2
4.80
15%
40%
15%
4.25
28
N3
8.40
25%
40%
25%
5.50
29
P3
8.40
15%
20%
15%
3.25
30
P5
6.40
10%
20%
10%
2.75
31
P6
6.00
10%
15%
10%
3.25
32
P7
6.40
10%
20%
10%
3.00
33
P8
4.80
10%
20%
10%
3.00
34
P9
8.00
20%
50%
20%
5.50
35
P10
5.60
15%
30%
15%
4.25
36
P11
5.60
20%
15%
20%
3.50
37
P12
6.40
25%
35%
25%
6.00
38
P13
4.80
15%
50%
15%
5.00
39
P14
5.20
10%
25%
10%
3.75
40
P15
8.40
15%
20%
15%
3.75
41
P16
9.20
20%
30%
20%
4.75
42
P17
7.60
10%
20%
10%
2.75
43
P18
7.60
20%
15%
20%
3.50
14