HG/MR/SOP/CO/03

Hannan Group Standard Operating Procedure Issue 2

Page 1 of 4
(Hannan Fashion’s Ltd./Fancy Fashion Sweaters Ltd./Hannan Knit & Textiles Ltd./Hannan Knitwears Ltd.)

Procedure for Control of Customer Property

Purpose:
This procedure defines the method used by Hannan Group in the control of customer-
supplied product.

Scope:
This procedure applies to all customer supplied materials including components, tools and
equipment, premises, intellectual property and personal data.

Responsibility and Authority:

Merchandising department is responsible for feed backing the quality problems of the
articles supplied by customers;
Purchasing department is responsible for purchasing the articles through the suppliers
nominated by customers.
Warehouse is responsible for receiving and storing the articles provided by customers.
Quality department is responsible for implementing inspection of the articles received and
reporting if such problem as damaging, deterioration, etc. is found.
Production department is responsible for using the articles safely in the manufacturing
process and reporting any abnormality caused by the articles provided by customers.

Details of Procedure:
Management of Customers’ Physical Property:
1. Requirement for Articles
a. The technical department will determine the quantity of the articles required for
production based on the quantity of orders. And the merchandising department will
report to customers the information of quantity, while the purchasing department will
confirm the purchasing orders and requirements with the suppliers nominated.
2. Receiving Articles
a. When the articles provided by customers arrive at the factory, warehouse shall
designate a specialist to verify the name, quantity, style No. and order No. of articles
against the Form of Delivering Articles.
b. When all information is verified without any error, the specialist will fill out
Receiving Form and the form together with the Form of Delivering Articles will be
handed over the quality department.
c. Quality department arrange IQC to perform the inspection

Approved Revision Revision

Prepared by: Signature Signature
by: No: Date:
Head of Quality Managing 14.07.2018
01
Department Director
 HG/MR/SOP/CO/03
Hannan Group Standard Operating Procedure Issue 2
Page 2 of 4
(Hannan Fashion’s Ltd./Fancy Fashion Sweaters Ltd./Hannan Knit & Textiles Ltd./Hannan Knitwears Ltd.)

3. Inspection of Articles and Control of Nonconformity

a. The IQC, in accordance with the Inspection Standard and Specification, performs the
inspection, records the defects found and give out the preliminary results in the
inspection reports.
b. The quality manager and/or supervisor will review the inspection records with Fail
result and evaluate the possibility of accepting the articles with a waiver with all
departments related. If the evaluation finally determines that the articles cannot be
accepted, the merchandising department will inform the customer and the purchasing
department will contact the suppliers to ship the articles back.
c. If the evaluation determines to accept the articles with a waiver, the warehouse
specialist shall post the corresponding identification on the articles and move the
articles into a special area of the articles provided by customers.
d. If the unacceptable is found with the articles provided by customers by the quality
department or production department in the manufacturing processes, the quality
department will prepare the Records for Handling Abnormality of Quality and the
records will send the records to the merchandising department to communicate with
the customer how to deal with the case.
e. The unacceptable articles will be returned to the warehouse with the Form of
Returning Articles and the warehouse will store these articles in the area for the failed.
f. When the confirmation is received from the customer, the purchasing department will
return the unacceptable articles to the customer or the corresponding suppliers.
4. Identification of Articles
a. When the inspection is completed, and final handling measures are confirmed, the
articles will be posted with the corresponding identification by following the
Identification and Traceability Control Procedure.
b. If the result is accepted or accepted with a waiver, the articles will be moved into a
special area for articles provided by customers. This area is separated from the areas
storing the other articles purchased and divided by customers’ name. In each storing
sub-area, the customer’s name, articles’ name, style No., order No. and quantity shall
be posted out for easy location.
The logging book shall also be prepared for each kind of article provided by
customers.
c. If the result is rejected, the articles will be posted with the identification of Rejection
and moved into the area for the articles rejected, waiting for returning to the customer
or the corresponding suppliers.

Approved Revision Revision

Prepared by: Signature Signature
by: No: Date:
Head of Quality Managing 14.07.2018
01
Department Director
 HG/MR/SOP/CO/03
Hannan Group Standard Operating Procedure Issue 2
Page 3 of 4
(Hannan Fashion’s Ltd./Fancy Fashion Sweaters Ltd./Hannan Knit & Textiles Ltd./Hannan Knitwears Ltd.)

5. Control of Nonconformity Caused by Articles Accepted with Waiver

a. When the articles are determined to be accepted with a waiver, the production
department shall use the articles with special caution and select out the articles
unaccepted during manufacturing processes.
b. The production department collects all articles unacceptable in a special area with
proper identification.
c. When the production is completed, all articles unaccepted will be returned to the
warehouse and the warehouse stores them in the area for the failed.
d. The purchasing department will return the unacceptable articles to the customer or the
corresponding suppliers.
6. Protection and Maintenance of Customers’ Physical Property
All kinds of customers’ physical property shall be protected and maintained by following the
Product Protection Control Procedure.
Management of Customers’ Intellectual Property
1. The drawings, software, dimensional specifications, etc. belong to this category.
2. Having received the properties, the departments shall verify the quantity and contents
against the information provided by the customer.
3. If any inconsistency is found, the merchandising department shall contact the customer
immediately to report the case and cooperate with the customer to find out the reason for
inconsistency and properties missed.
4. The departments receiving these intellectual properties shall prepare the logging book to
record all properties received.
5. To keep these properties confidence, the drawings, dimensional specification and orders
printed out shall be protected and distributed as the Documentation Control Procedure
required.
6. The software and drawings, dimensional specification, orders, etc. unprinted shall be kept
in the computers with password and a password shall be changed once per month.

7. Supporting Documents
Identification and Traceability Control Procedure SOP/QAD/PIT/11
Control Procedure of Nonconformity SOP/QAD/NCP/17
Inspection Standard and Specification

8. Records
Inspection Records of Materials

Approved Revision Revision

Prepared by: Signature Signature
by: No: Date:
Head of Quality Managing 14.07.2018
01
Department Director
 HG/MR/SOP/CO/03
Hannan Group Standard Operating Procedure Issue 2
Page 4 of 4
(Hannan Fashion’s Ltd./Fancy Fashion Sweaters Ltd./Hannan Knit & Textiles Ltd./Hannan Knitwears Ltd.)

Logging Book for Property Received

Form of Receiving Articles
Form of Delivering Articles
Records for Handling Abnormality of Quality
Form of Returning Articles

Related Documents:
Documents Name Document Number
Procedure for Control of Nonconforming Product

Approved Revision Revision

Prepared by: Signature Signature
by: No: Date:
Head of Quality Managing 14.07.2018
01
Department Director