SUMMARY REPORT Q4/2013
Supplier Uptake Progress
Overview of Supplier On-boarding Status by Brands Program
Dell
HP
Philips
Apple
Nokia
TOTAL
48
11
7
15
12
3
Contract signed (Move to implementation)
41
9
6
14
9
3
Pending
0
0
0
0
0
0
EPA in implementation
7
2
1
1
3
0
EPA in preparation (newly onboard)
0
0
0
0
0
0
Philips
Apple
Nokia
Geographic Location by Brands Program
Dell
HP
TOTAL
48
11
7
15
12
3
Guangdong Area
37
11
6
8
9
3
Shanghai Area
10
0
1
6
3
0
Other
1
0
0
1
0
0
2
Total Factories on board (by Dec. 31)
Geographic location, total factories (by Dec. 31)
Total=48
Total=48 3
12
10
11
1
7
37
15 South Dell
HP
Philips
Apple
Shanghai Area
Other
Nokia
Comment on Progress Over the last three months, the program has continuously progressed with 41 suppliers implementing Work Plans and 7 suppliers conducting/preparing Entry Point Assessments. There are currently 48 suppliers in total in the program. The window for new entrants to join the full IDH program will close in Q1 ’14, however IDH has also launched the ‘Fast Track’ program which will be conducted in 12 months (vs 18 months) and this will extend the program into Q2 for new factories to join.
Impact Review Meeting During Q4 IDH held a supplier event in Shenzhen focused on sharing best practices and identifying impact from the factories working in the program so far. The event was well supported with enthusiastic involvement from both factories and brands. Working with the stakeholders IDH was able to identify some positive examples of impact achieved at the factories. This has been summarized and shared with all program members and will be used to drive continued active participation in the program. Some factories will complete the IDH program during 2014, as the overall program now reaches the mid-way point. This is a new phase for the program. Brands will conduct mid-term reviews with all factories 9 months before completion to ensure that the overall work-plans are being followed and the program is on track.
New Supplier on-boarding / Fast Track During Jan & Feb IDH will hold webinar events with potential new factory candidates to join the Fast Track program. These factories will enter the program before the end of Q2’14 and follow the condensed curriculum as well as the e-learning on specific performance topics.
3
Key Focus Points: 1) To reach the target of 75 suppliers, the Fast Track has been launched and this program will begin during Q1’14. 2) During the impact review in Dec the stakeholders found many examples of the benefits of best practice sharing and this will continue to be a key part of the implementation phase. 3) Factory management commitment and active participation from workers is key in achieving dynamic dialogue and impact. The output from the impact review sessions will be used by the brands to gain more momentum in senior management engagement at the factories.
4
Progress Status No.
1 2 3
4 5 6 7 8 9 10 11 12 13 14
15 16 17 18 19 20
By Brand
Status
EPA
Implementation Starting Point
Work Plan
On Track
Completed
Jan-13
On Track
NOT SUBMITTED
TUV, TIMELINE
On Track
Completed
Jan-13
On Track
April and May sent
TIME LINE
On Track
Completed
Jan-13
On Track
NOT SUBMITTED
CLSN, TIMELINE
On Track
Completed
Jan-13
On Track
Submitted by July 2013
TIMELINE
On Track
Completed
Jan-13
On Track
Submitted by July 2013
LESN, TIMELINE
On Track
Completed
Mar-13
On Track
Submitted by Sep 2013
TIMELINE
New starter
Completed
Oct-13
On Track
-
TIMELINE
In progress
-
-
-
TBD
D9
On boarding
Scheduling
-
-
-
TBD
D10
On boarding
Scheduling
-
-
-
TBD
D11
On boarding
In progress
Jan 2014
-
-
D12
On boarding On Track
Completed
Jan-13
On Track
Submitted by July 2013
TUV
On Track
Completed
Jan-13
On Track
Submitted by July 2013
Timeline
Resumed
Completed
Sep-13
On tract
-
CLSN
On Track
Completed
Jun-12
On track
-
TUV
New starter
Completed
Oct-13
-
-
TUV
In progress
-
-
-
TBD
H9
On boarding
H10
On boarding
D1 D2 D3
D4 D5 D6
KPI Collection
Involving WMD SPs
D7
H1 H2
H4 H5 H8
TBD
Re-joined
Completed
Aug-13
On Track
-
On Track
Completed
Jan-13
On Track
Submitted by August 2013
TAOS
P3 P5
Timeline
5
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
37 38 39 40 41
On Track
Completed
Mar-13
On Track
Submitted by August 2013
TUV
On Track
Completed
Mar-13
On Track
Submitted by July 2013
TUV
On Track
Completed
Mar-13
On Track
Submitted by July 2013
LESN
New starter
Completed
Nov-13
-
-
TBD
New starter
Completed
Oct-13
On Track
-
Timeline
New starter
Completed
Oct-13
On Track
-
TAOS
New starter
Completed
Sep-13
On Track
-
TUV
New starter
Completed
Oct-13
On Track
Scheduled in Nov
TUV
New starter
Completed
Oct-12
On Track
Scheduled in Nov
SUSA
New starter
Completed
Oct-13
On Track
Scheduled in Nov
TUV
New starter
Completed
Oct-13
On Track
Scheduled in Nov
SUSA
New starter
Completed
Pending
-
-
TBD
New starter
Completed
March 2014
On Track
Completed
Mar-13
On Track
Submitted by August 2013
LESN
On Track
Completed
Mar-13
On Track
Submitted by August 2013
LESN
On Track
Completed
Mar-13
On Track
Submitted by August 2013
CLSN
On Track
Completed
Mar-13
On Track
LESN
New starter
Completed
Aug-13
On Track
Submitted by September 2013 Submitted by August 2013
New starter
Completed
Oct-13
On Track
-
Timeline
New starter
Completed
Oct-13
On Track
-
Timeline
New starter
Completed
Oct-13
On Track
-
Taos
P6 P7 P8 P14 P15 P16 P9 P10 P11 P12 P13 P17 P18 A1 A2
A3 A4 A5
TAOS
A6 A7 A9
6
42 43 44 45 46 47 48
Completed
-
-
-
TBD
A10
On boarding
Completed
-
-
-
TBD
A11
On boarding New starter
Completed
New starter
Completed
Completed
Completed
Approve
-
TBD
N1
Phase I completed
Completed
Completed
Approve
-
TBD
N2
Phase I in progress
Completed
Completed
Approve
-
TBD
N3
Phase I in progress
January 2014
A12 A13
7
Program Status Overview: Work Plan Completion VS Work Plan Timeline
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 H2 H1 P16 P15 P14 P13 P12 P11 P10 P9 P8 P7 P6 P5 P4 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 W-M Dialogue
Non-Dialogue
Check & Act
WP Timeline
8
Trend Analysis Data Tracked Back To January 2012 June 2012 January 2013 March 2013 June 2013 September 2013 December 2013
Number of Suppliers 11 1 1 4 16 13 7
Worker Turnover (%)
Program trend overall is relatively flat, however the average increased in Dec, which is related to the seasonal increase, as seen in 2012. The underlying (seasonally adjusted) turnover rate is decreasing slightly overall
Program
Rework Rate (%)
Program
dec-13
nov-13
okt-13
sep-13
aug-13
jul-13
jun-13
mei-13
apr-13
mrt-13
feb-13
jan-13
dec-12
nov-12
okt-12
sep-12
aug-12
jul-12
jun-12
mei-12
apr-12
mrt-12
feb-12
jan-12
35,00 30,00 25,00 20,00 15,00 10,00 5,00 0,00
Linear (Program)
Program trend is reducing overall, although rework rates increased during Q4 ’13, which was also seen during Q4’12.
3,50 3,00 2,50 2,00 1,50 1,00 0,50
Program
Program
dec-13
nov-13
okt-13
sep-13
aug-13
jul-13
jun-13
mei-13
apr-13
mrt-13
feb-13
jan-13
dec-12
nov-12
okt-12
sep-12
aug-12
jul-12
jun-12
mei-12
apr-12
mrt-12
feb-12
jan-12
0,00
Linear (Program)
9
Average Monthly Net Wages (RMB)
Program trend is increasing during Q4’13, which is linked to the increasing trend of working hours (as seen below).
5.300 4.800 4.300 3.800 3.300 2.800 2.300 1.800
Program
Average Weekly Working Hour (Hours)
Program
dec-13
nov-13
okt-13
sep-13
aug-13
jul-13
jun-13
mei-13
apr-13
mrt-13
feb-13
jan-13
dec-12
nov-12
okt-12
sep-12
aug-12
jul-12
jun-12
mei-12
apr-12
mrt-12
feb-12
jan-12
1.300
Linear (Program)
Program working hours are showing a marginally increasing trend. Working hours show a increase during Q4, which is the seasonal norm, before an anticipated reduction in Q1 (New year).
70 60 50 40 30 20 10
Program
Program
dec-13
nov-13
okt-13
sep-13
aug-13
jul-13
jun-13
mei-13
apr-13
mrt-13
feb-13
jan-13
dec-12
nov-12
okt-12
sep-12
aug-12
jul-12
jun-12
mei-12
apr-12
mrt-12
feb-12
jan-12
0
Linear (Program)
10
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
6.39
8.27
# of work-related injuries
1.28
0.00
# of days lost due to work-related injuries
9.37
0.00
Average weekly working hours in the calendar month
56.05
39.50
Average # of rest days
4.66
9.00
402753.33
N/A
22.91
0.00
Average monthly net wage (RMB)
2952.63
4668.00
Average monthly gross wage (RMB)
3130.07
4957.50
Ratio of OT Premium to Gross Wages
36.39
N/A
1st quartile of monthly net wage (RMB)
2701.19
5778.50
2nd quartile of monthly net wage (RMB)
2880.90
4769.16
1st quartile of monthly gross wage (RMB)
2823.56
5815.00
2nd quartile of monthly gross wage (RMB)
3077.11
5030.50
2.56
0.00
68296.04
887661.62
Rework Rate (%)
1.52
0.04
Turnover (%)
14.24
11.07
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 Suppliers
Facilities (0-100)
Health & Safety (0-100)
Career & Personal Developme nt (0-100)
40.51
56.49
64.97
62.55
54.49
31.70
51.42
57.82
55.00
78.62
77.24
77.25
72.29
85.56
70.55
77.88
77.76
58.23
69.59
82.46
72.09
66.65
60.48
28.14
60.33
74.90
57.80
6.53
65.69
72.33
48.45
66.57
60.71
53.91
6
6.70
69.84
70.50
45.38
61.80
71.74
59.78
7
6.21
62.70
57.77
59.64
56.87
59.87
52.70
8
8.27
83.73
83.05
67.11
80.70
90.84
77.97
9
5.40
64.40
54.23
29.25
49.32
45.56
52.46
10
5.68
63.08
57.64
33.67
56.27
61.18
45.23
11
6.33
68.08
67.81
37.09
58.94
60.23
64.09
12
6.34
64.53
63.67
59.93
56.09
56.22
57.55
13
6.04
66.39
65.29
10.26
64.51
67.88
61.66
14
5.67
63.18
63.92
23.40
46.57
59.08
55.00
15
6.20
67.32
65.92
28.97
61.34
64.49
58.33
16
6.30
67.59
60.22
24.95
65.44
69.91
65.27
17
7.04
70.20
71.44
59.06
60.51
77.69
63.41
18
6.70
66.59
70.02
41.89
62.65
73.20
64.38
19
5.26
65.26
48.72
17.89
46.52
41.99
63.03
20
6.70
68.47
73.58
46.17
59.81
70.08
62.33
21
6.87
66.22
67.52
64.75
61.85
67.76
63.16
22
6.46
65.07
58.09
53.19
51.23
66.93
64.24
23
6.74
70.67
67.11
37.74
62.04
79.21
67.74
24
5.68
64.67
54.55
36.55
44.07
50.78
59.04
25
6.23
67.80
47.05
36.86
41.49
48.44
61.14
26
7.01
67.91
53.38
31.08
64.38
49.62
65.56
27
6.72
68.65
63.94
46.79
55.53
70.14
73.02
28
6.06
69.91
40.65
30.08
50.97
62.97
66.55
29
6.23
65.60
61.50
39.47
45.74
63.68
64.33
30
6.83
67.39
59.71
60.31
65.09
65.19
62.99
31
6.70
62.74
60.70
54.30
46.64
67.19
58.02
32
6.88
65.16
64.75
44.92
59.79
70.75
65.50
Overall Scale (1-10)
Working Relationships (0-100)
Wage Fairness & Transparency (0-100)
Working Hours (0-100)
6.39
68.04
62.49
1
5.71
62.87
2
8.00
3
7.55
4
6.22
5
Factory
Below Average Above Average
12
33
7.48
77.96
77.20
57.74
67.57
74.78
77.62
34
7.73
79.48
72.83
64.80
71.12
81.50
80.41
35
6.55
73.89
68.63
35.74
62.27
71.03
66.51
36
6.02
63.84
57.56
51.99
36.45
63.11
58.58
37
5.55
65.37
54.09
31.48
49.82
45.31
57.72
38
5.53
63.01
51.36
27.24
41.54
61.92
58.28
39
7.36
75.86
70.79
50.43
71.64
82.54
76.43
40
6.27
65.91
57.50
60.08
51.85
64.18
52.05
41
5.31
63.01
52.56
15.47
31.41
64.07
59.73
42
5.44
62.73
64.17
13.78
43.65
58.04
53.11
43
7.38
44
5.95
73.00 66.70
62.22 59.74
67.87 33.33
74.07 45.87
77.78 63.46
69.63 59.31
45
6.12
67.38
66.58
27.74
60.36
57.91
61.76
46
5.37
69.36
51.46
25.73
39.59
43.85
62.85
47
6.03
68.92
59.97
18.41
59.75
61.81
66.24
48
5.71
65.76
56.34
18.29
56.02
60.68
56.66
49
5.83
67.00
64.12
20.41
48.46
57.35
64.07
Worker Management Dialogue Maturity Index Comparison by Suppliers Rep systems
Non-rep comm systems overall (1~10)
System & roles (0~20)
6.08
16%
32%
16%
4.29
1
4.80
15%
50%
15%
5.25
2
5.60
25%
30%
25%
6.00
3
5.60
15%
45%
15%
4.75
4
6.00
10%
15%
10%
3.00
5
6.40
15%
15%
15%
4.25
6
5.20
15%
35%
15%
4.00
7
6.40
15%
35%
15%
4.50
8
6.80
15%
40%
15%
4.75
9
5.60
10%
20%
10%
2.75
10
6.80
15%
35%
15%
4.00
11
4.00
25%
55%
25%
5.75
12
6.80
20%
50%
20%
6.50
13
6.00
10%
25%
10%
3.75
Supplier/Factory Name Above Average Below Average
Representation Resources & participation (0~20) (0~20)
Overall (1~10)
13
14
6.40
15%
60%
15%
5.25
15
4.40
20%
45%
20%
6.25
16
4.00
15%
30%
15%
3.50
17
4.40
20%
20%
20%
3.25
18
5.20
15%
30%
15%
4.50
19
5.60
15%
40%
15%
4.50
20
4.40
15%
40%
15%
4.75
21
6.40
20%
45%
20%
6.00
22
5.20
15%
40%
15%
4.75
23
8.80
15%
30%
15%
3.75
24
5.20
10%
20%
10%
2.50
25
4.80
15%
15%
15%
2.75
26
7.20
20%
50%
20%
5.75
27
4.80
15%
40%
15%
4.25
28
8.40
25%
40%
25%
5.50
29
8.40
15%
20%
15%
3.25
30
6.40
10%
20%
10%
2.75
31
6.00
10%
15%
10%
3.25
32
6.40
10%
20%
10%
3.00
33
4.80
10%
20%
10%
3.00
34
8.00
20%
50%
20%
5.50
35
5.60
15%
30%
15%
4.25
36
5.60
20%
15%
20%
3.50
37
6.40
25%
35%
25%
6.00
38
4.80
15%
50%
15%
5.00
39
5.20
10%
25%
10%
3.75
40
8.40
15%
20%
15%
3.75
41
9.20
20%
30%
20%
4.75
42
7.60
10%
20%
10%
2.75
43
7.60
20%
15%
20%
3.50
14