Gap Inc.

Quality Assurance Manual

February 2012
(A Supplement to the Vendor Handbook)
 QA Manual 2011

TABLE OF CONTENTS

Table of Contents .................................................................................................................................................................................... 2

Introduction, Scope & Contacts............................................................................................................................................................. 4

INTRODUCTION.................................................................................................................................................................................................... 4
PURPOSE .............................................................................................................................................................................................................. 4
POLICY ON QUALITY .......................................................................................................................................................................................... 4
SCOPE .................................................................................................................................................................................................................... 5
CONTACTS ............................................................................................................................................................................................................ 5
GIS OFFICES ......................................................................................................................................................................................................... 5

Requirements for Pre-Production and Pilot Runs .............................................................................................................................. 6

ORDER PLACEMENT INFORMATION: ............................................................................................................................................................ 7

MEETING PARTICIPANTS .................................................................................................................................................................................. 7
MEETING MATERIALS ........................................................................................................................................................................................ 8
MEETING TIMING ................................................................................................................................................................................................. 8

Pilot Run ................................................................................................................................................................................................... 9

PURPOSE OF THE PILOT RUN ......................................................................................................................................................................... 9

PILOT CUTTING .................................................................................................................................................................................................... 9
WET PROCESSING............................................................................................................................................................................................ 11
WP CONTACT INFORMATION......................................................................................................................................................................... 12

Bulk Production Requirements ............................................................................................................................................................ 13

IN-PROCESS INSPECTION .............................................................................................................................................................................. 13

IN-PROCESS INSPECTION FORMS ............................................................................................................................................................... 13
CUTTING INSPECTION PROCEDURES ........................................................................................................................................................ 13
TRIM & SEWING INSPECTION PROCEDURES ........................................................................................................................................... 14
SHIPMENT AUDITS ............................................................................................................................................................................................ 14
AUDIT METHODS ............................................................................................................................................................................................... 14
SHIPMENT INSPECTION FORMS ................................................................................................................................................................... 15

Acceptable Quality Level (AQL) .......................................................................................................................................................... 16

AQL STANDARDS .............................................................................................................................................................................................. 16

CRITICAL DEFECTS .......................................................................................................................................................................................... 17
MAJOR AND MINOR VISUAL DEFECTS ........................................................................................................................................................ 18
VISUAL AUDIT SAMPLING PLANS ................................................................................................................................................................. 19
VISUAL AUDIT PROCEDURE FOR NON-DESTRUCTIVE .......................................................................................................................... 21
MEASURING THE WEIGHT OF SWEATERS ................................................................................................................................................ 22
MEASUREMENT AUDIT PROCEDURE .......................................................................................................................................................... 23
MEASUREMENT AUDIT SAMPLING PLANS................................................................................................................................................. 24
PACK AUDIT REQUIREMENTS ....................................................................................................................................................................... 25
FULL CARTON PACK PROGRAMS ................................................................................................................................................................ 27
FULL CARTON PACK AUDIT PROCEDURES ............................................................................................................................................... 27
SECONDS AND OVERRUNS ........................................................................................................................................................................... 27
COMMUNICATION AND RECORDS ............................................................................................................................................................... 28

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Safety Procedures ................................................................................................................................................................................. 29

NEEDLES & FOREIGN METAL CONTAMINATION ...................................................................................................................................... 29

CHARGEBACK POLICY..................................................................................................................................................................................... 29
NEEDLE CONTROL PROCEDURES ............................................................................................................................................................... 30
OTHER SHARP METAL OBJECT CONTAMINATION .................................................................................................................................. 32
NEEDLE DETECTION PROCEDURES ........................................................................................................................................................... 33
METAL-FREE DETECTION AND PACKING ZONE....................................................................................................................................... 36
VERIFICATION OF FACTORY’S NEEDLES AND FOREIGN METAL CONTAMINATION CONTROL PROCEDURES .................... 36
NEEDLE CONTROL LOGS................................................................................................................................................................................ 37

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INTRODUCTION, SCOPE & CONTACTS

INTRODUCTION

This Quality Assurance Manual for Vendors is developed by Gap Inc. as a supplement to the Vendor Handbook and
outlines the quality expectations of all apparel products. The requirements have been carefully established considering
ongoing business conditions and Gap Inc.’s constant desire to excel in the quality of the product they design and develop.

Gap Inc.’s Quality Assurance program is not intended to replace the vendor’s own quality control program as Gap Inc.
expects its vendors and suppliers to develop a positive culture of quality to enable them to deliver products that comply
with all Gap Inc.’s requirements. This culture must begin with vendor management’s commitment to develop a quality
organization and to embrace a proactive approach to drive continuous improvement in product quality. Gap Inc. expects
vendors to particularly focus on following areas:

• Allocating appropriate resources to ensure quality systems are working and effective.

• Encouraging active participation of all workers in improvement efforts.

• Ensuring that manufacturing processes are stable, capable, and under control at all times and are producing
defect free products.

• Ensuring that adequate in-process inspections and testing are in place to monitor quality.

• Documenting systems, processes, procedures, etc. to maintain effective operations.

• Creating open, honest and timely communication with Gap Inc.’s sourcing offices.

PURPOSE

The purpose of the Quality Assurance Manual is to communicate product quality requirements to vendors, suppliers and
agents as it outlines the policies, procedures and quality expectations. Vendors, suppliers and agents that do business
with Gap Inc. must be familiar with the contents of this manual and the Appendix worksheets and forms. Certain Chapters
are written to outline procedures for Gap Inc’s internal QA teams. However, the vendor may use it to train their QA teams
or use it in any manner to supplement their QA processes.

POLICY ON QUALITY

Gap Inc.’s policies on quality of apparel products are developed by defining various measures and by setting standards
that vendors are required to meet or exceed when shipping every purchase order to Gap Inc.

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SCOPE

This manual deals with quality requirements of apparel products only. This manual is also a useful resource for Gap Inc.’s
internal Quality Assurance, Production and Merchandising teams.

This manual is the property of Gap Inc. While in your company’s possession, the Manual is to be maintained in strict
confidence and must not be divulged to anyone other than those who need to know its contents for the purpose of your
dealings with Gap Inc. or its vendors. The Manual shall be returned to Gap Inc. immediately upon termination of your
dealings with Gap Inc. or its vendors, or upon Gap Inc.’s request.

CONTACTS

For any questions or clarification on this Manual please contact your regional QA leads at the GIS office listed below or
Corporate QA at following address:

Gap Inc. Corporate Quality Assurance

th
2 Folsom, 6 Floor / San Francisco, California 94105 USA
Email: Corporate_Quality_Assurance@Gap.com

GIS OFFICES

GIS Hong Kong

20-22/F, BEA Tower, Millennium City 5 / 418 Kwun Tong Road, Kwun Tong / Kowloon, Hong Kong
Tel: 852.2.730.9883
Fax: 852.2.736.8903

GIS India
B-1/I-2, Mohan Co-operative Industrial Estate / Mathura Road, New Delhi, India
Tel: 91.11.418.22222
Fax: 91.11.628.0978

GIS Korea
Meritz Tower 11-13th Floors / 825-2, Yeoksam-dong, Gangnam-gu / Seoul, Korea
Tel: 822-6733-6000
Fax: 822-6733-6088

GIS Mediterranean
Akabe Is Merkezi, Buyukdere Cad / No. 78-80 Kat: 3, Mecidiyekoy / Istanbul, 34390, Turkiye
Tel: 90 212 370 41 00
Fax: 90 212 217 15 43

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REQUIREMENTS FOR PRE-PRODUCTION AND PILOT RUNS

Pre-Production Requirements

• This section has been written as a guideline for Gap Inc.’s QA and PI/WP personnel, but the vendor can apply
and adopt it to train their internal QA staff as well.

• In-depth preparation is a critical step to ensure success of any manufacturing program.

• Gathering timely and accurate information of styles and production details from the Merchandising is a critical
preparation step.

Purpose of Pre-Production Meetings

The purpose of the pre-production meeting is to ensure that all teams that are involved get an opportunity to go over the
details and are able to develop plans to deliver product that complies with all the brand requirements.

The intent of preparation is to facilitate early detection of potential quality failures and help develop action plans to prevent
in bulk production issues and post-sale consumer dissatisfaction.

Pre-production requirements are outlined below.

Preparing for Pre-Production Meeting

Pre-production Samples:

In preparation for a pre-production meeting, once a final Garment Size Specifications sheet (GSS) with size set comments
is available, a factory must prepare either a jump size set or a full size set of pre-production samples, incorporating all the
fit comments, for evaluation during the pre-production meeting.

QA will evaluate the samples on:

• Measurement

• Construction

• Sewing method

• Trims/accessory placement

PI/WP will evaluate the samples on:

• Potential safety issues

This step is expected to help speed up the production process as potential production issues are likely to surface during
such runs and can be addressed before the start of bulk production. This can be a critical step for large programs.

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ORDER PLACEMENT INFORMATION:

• QA should get a Confirmed Placement Summary (CPS) from the merchandising department that provides
visibility to styles being placed with each vendor and its facilities.

• QA must therefore work with merchandising and the factory to obtain production information such as production
planning, raw materials and accessories status, etc.

• This will help the QA to plan meetings and/or visits to support pre-production activities.

MEETING PARTICIPANTS

• The pre-production meeting must involve all parties responsible for the quality of the product.

• The following personnel are recommended to be in a pre-production meeting.

• By request - WP should make an effort to schedule and coordinate the meeting to time it with facility’s production
planning or other such key meetings.

5.1 From the Factory

• Factory manager/Production manager

• Production floor supervisor/s (cutting/sewing/finishing/packing)

• Gap certified QA

• Merchandiser

5.2 From Gap Inc.

• QA/Garment technician/appropriate QA handling the program

• Merchandiser

• PI/WP (Product safety for kids/baby program) if based at source or if available.

o It is recommended that either the spoke merchant or the hub merchant get involved in pre-production
meetings as well.

o Involve the PI product safety specialist in these meetings as necessary if there are special safety issues that
need clarification.

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MEETING MATERIALS

• The pre-production meeting may be conducted with samples and key relevant production information as listed
below.

o Garment Size Specifications with size set comments

o Purchasing Order

o Trims card (the factory can prepare this in advance)

o Dye lots (as made available by the mill)

o Pre-production garment samples

o Sample with final size set comments sent by merchants

o Product Safety Line review comments or equivalent (for kids/baby programs)

o Approved wash standard

• Special comments & specific quality issues must be recorded on a Pre-production Sample Evaluation Checklist
(Appendix I, form #2 of QA Manual) to ensure proper follow up action by the factory, in-house QA, and the line
supervisor.

• For baby/kids garment production, QA must review any product safety recommendations contained in the line
review report so that they are correctly implemented in production.

MEETING TIMING

• The most appropriate time to hold a pre-production meeting is before the cutting operation.

• As previously stated the intent of pre-production meetings is to consolidate all information and to ensure that all
parties have the same details and understanding of the program.

• If possible the evaluation of pre-production samples should also be done prior to the meeting.

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PILOT RUN

PURPOSE OF THE PILOT RUN

• The main objective of a pilot run is to review and anticipate potential production issues that may arise during
various operations such as cutting, sewing, finishing, pressing and also to review any issues related to
measurements, product safety, performance and overall quality.

• For programs that require special wet processing treatments, the pilot run samples may be kept aside for wash
pilot at a later date when the wash standard is approved.

• The factory should start a pilot run soon after the pre-production meeting.

PILOT CUTTING

• Cutting is the first process prior to the commencement of a pilot run. QA should review the following points at the
pilot cutting stage with the factory personnel and/or in-house QA:

o Proper shrinkage has been built into the paper patterns. (Markers)

o GSS used is “Final” and critical fit comments are interpreted onto the paper pattern.

o Fabric testing has been done & meets all Gap Inc’s Performance Protocols and Specifications.

o Dye lot or shades have been sorted and grouped; out of tolerance (i.e. off shade) rolls removed & put aside
for a later discussion with the fabric mill. (Utilizing a visual method)

o Face and back of fabric has been clearly defined and identified. This is critical for certain fabrics where the
back may be used as the face e.g. sheeting, poplin or satin fabrics or nap direction for corduroys.

Stretch fabrics have been properly relaxed.

• Factory should proceed with the cutting operation only when above details are verified and confirmed

• The details should be reported on an Shipment Inspection Report (Appendix I, form #8, QA Manual), using the
Fabric/Cutting Checklist and defect portion.

• If questions arise concerning specifications, fabric or material standards, color or shade, QA must contact the
merchandising representative for clarification. It is a good practice to verify with merchandising representative if
there are discrepancies between their own information and those of the factories before proceeding with bulk
production.

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9.1 Pilot Run Set up

• The pilot run should be set up to simulate a small production run comprising of the entire size range or having at
least a jump size range in three possible color ranges. (i.e. from wash blanket – lightest and darkest rolls)

• The minimum recommended units are 200.

• Depending on the availability of colors, the vendor may be required to do more than one pilot run.

• QA must check that all components, trims, accessories and labels are available to meet the production schedule.

• If certain components or trims are not available a pilot run may be done using prototype or available trims and
components.

• In such cases QA will ensure that a proper audit is later performed to verify that the correct trims and components
are used in bulk production.

9.2 Evaluating Pilot Run

• As pilot runs are mini production runs, they are audited according to Gap Inc.’s visual and measurement audit
standards for shipment.

• These standards may vary according to the brand, and are located within the QA Manual.

• However, the sample size to be audited should not exceed 50 pieces.

• The audit results should provide the quality level so that the vendor can address any noncompliance issues in
bulk production.

Pilot runs are evaluated in following areas:

o Hand feel and color against approved standards.

o If standards are not available examples of fabric colors and range of shades (shade bands) should be
forwarded to the merchandiser or production representative for their approval.

o Placement and size of pattern pieces against specification sheet.

o Seam construction, thread color and size against specification sheet.

o Check that all small parts for baby’s and kids’ wear are securely attached and are meeting product safety
regulations.

o Attachment quality of buttons, rivets and grommets on adult garments.

o Garment measurements against specification sheet.

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• QA must inform merchandising of any quality issues that cannot be corrected and are beyond control of the
vendor (e.g. excessive fabric defects making cutting difficult). Merchandising will work with SF GP to set an
acceptable tolerance for such PO’s.

WET PROCESSING

10.1 Setting Shade Band Standards and Tolerance

• Will use the visual shade blanked SOP

10.2 Wash Pilot/First Bulk Trial

• Once the shade band tolerance is set and the aesthetics approved, PI/WP follows up with the factory on
performing a wash pilot so that final bulk production aesthetics and tolerance can be confirmed.

• Garments from pilot run or from bulk production may be used in a wash pilot, depending on timing of final wash
approval.

• WP will approve wash pilot/first bulk trial and also production range. Vendors should submit wash shade bands
for all styles, however, we need to confirm with the brands if still valid.

10.3 Evaluating a Wash Pilot

• A wash pilot is performed on the first 500 garments of a bulk production run or as early as possible when a wash
standard has been approved and set.

• The wash pilot must include appropriate light, medium and dark shades or dye lots to enable proper assessment
of bulk production and generation of a shade band.

• A representative sample size of 50 pieces of garments are inspected according to a statistical sampling plan and
evaluated for the following criteria:

Shade tolerances are within shade bands or dye lots. Check this by:

• Stacking up the different shades and reviewing them against the shade band.

• Vendor can rework as necessary to match the standard.

• Shades that are out of tolerance must be sorted and communicated to merchant for further decision.

• QA may reject small quantities of production if outside of standard tolerance of shade band and if it does not
impact size ratio.

• High-lows and abrasive effects are in the correct position & not over abraded:

o Hold a garment up when checking for high low and abrasive effect and numbers of nicks against
approved standards.

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o Key areas of garments to check are the edges along waistbands, bottom hem, outseam and inseams,
pocket edge and belt loops.

Hand sanding, permanganate, localized bleaching, whisker-finish:

• Hang a garment up when checking for correct positioning and size of an appropriate finish.

o This helps to give a more accurate assessment of the required three- dimensional look.

o In most cases, for localized effects done by hand sand/PP, they should be gradually faded out at the
edge for a natural look.

o Hand feel and color against approved standards.

• QA should always seek technical assistance and the attendance of a hub wet processing specialist to address
and resolve wet processing problems at the pilot stage.

• Once the wash standard is set, in-house QA should follow up on the process by monitoring routine bulk
production to ensure shade continuity and matching to approved standard.

WP CONTACT INFORMATION

For any questions concerning the implementation of this standard operating procedure, please contact the following

• Cesar Guerrero: cesar_guerrero@gap.com

• Geoffrey Cheung: geoffrey_cheung@gap.com

• Prem Singh: prem_singh@gap.com

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BULK PRODUCTION REQUIREMENTS

IN-PROCESS INSPECTION

The purpose of an In-Process inspection is to check the following: raw materials, marker layout, spreading, cutting,
sewing, wet processing, screen printing, pressing and other embellishments. Sampling plan should not be used at this
stage since a lot size is a bundle. For woven and knit production, the first In-Process inspection begins when
knitting/weaving commences.

While inspecting semi-finished goods and batches during work-in-process, QA must keep records on defects found for
discussion and communication with the manufacturer/GIS production representatives.

The number of defects found during a cutting, measurement or visual inspection should be noted on the various In-
Process reports. It is not the purpose of the In-Process inspection to try and measure percent defective, but to identify
potential problems that arise during these operations. These In-Process reports will be the basis for data collection and
evaluation and to help drive improvements in the operations.

IN-PROCESS INSPECTION FORMS

At the relevant In-Process Inspection stages, QA will use the following forms:

• In-Process Inspection Report (Appendix I, form # 4)

• In-Process Audit Worksheet (Appendix I, form #5 & 6)

• In-Process Graphics Worksheet (optional ~ not included)

Please note these forms must be used as is during the In-Process Inspection. If there are questions or change requests
regarding the forms, contact the GIS QA lead or Corporate QA in San Francisco.

CUTTING INSPECTION PROCEDURES

The following are QA procedures when performing an In-Process cutting inspection:

• Verify and record fabric test reports.

• After cutting, perform visual and measurement (i.e. top to bottom ply, hard pattern to cut pieces) inspection of cut
parts using the In-Process Inspection Report (use the Fabric/Cutting Checklist and defective portion) (Appendix I,
form #4).

• Discuss the problems found and recommend solutions to factory management.

• If the factory can not correct the problem, the production representative should be contacted for corrective action.

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• If questions regarding specifications, fabric/material standards, color, etc. arise, the production representative
should be contacted for corrective action.

TRIM & SEWING INSPECTION PROCEDURES

The following are QA procedures when performing an In-Process inspection:

• All fabrics, components, trims, and labels should be checked against production approved standards, and must
reflect correct country of origin and fibers and component contents.

• Review and record all required Gap, Inc. fabrics, components, and product test reports.

• Verify needle control and safety procedures are being followed.

• Check to make sure that all components, trims, and labels are available to meet production schedules.

• Perform random checks in sewing lines and finishing.

• Verify factory is inspecting at least six pieces of each operator’s semi-finished goods to check for workmanship
defects ~ Record finding on the appropriate In-process Inspection report.

• Check hand and color against approved standards ~ If standards are not available, send the production
representative examples of fabric colors and range of shades.

SHIPMENT AUDITS

The purpose of a shipment audit is to determine the quality of the products by its visual appearance, measurement to
specifications and packing execution. The shipment audit must be performed before the finished product is shipped. This
is done in order to minimize the risk of shipping defective product to Gap Inc. distribution centers, stores or other
designated locations.

AUDIT METHODS

Two audit methods as listed below can be used in relation to the timing of the audit. Non-destructive Audit is preferred as
it is considered the proactive approach.

Non-destructive Audit

A non-destructive audit is usually performed for measurements, visuals, and packaging before the garments are boxed.
Packing audits must be performed during the boxing/packing process to verify labels, assortments, and counts.

Destructive Audit

This type of audit covers measurement, visual and packaging audits and is performed during packing process when
garments are boxed for shipping.

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SHIPMENT INSPECTION FORMS

At the relevant shipment inspection stage QA will use the following forms:

• Visual Inspection Worksheet (Appendix I, form #7)

• Finished Garment Measurement Sheet (Appendix I, form #9)

• Box Audit (Appendix I, form #10)

Please note, these forms must be used as is during the Shipment Inspection. If there are questions or change requests
regarding the forms, contact the GIS QA lead or Corporate QA in San Francisco.

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ACCEPTABLE QUALITY LEVEL (AQL)

Acceptable Quality Level is the maximum percent defective that, for the purpose of sampling inspection, is considered
satisfactory as a manufacturing process average.

The table on the following page shows the AQL for each brand. Gap Inc. requires that vendors must meet or exceed
these standards on every purchase order shipped to Gap Inc.

AQL STANDARDS

Table 1: AQL Standards for Gap, Old Navy, Athleta & Outlet brands

ANSI/ASQC Zi.4 1993 Single Sampling Plan, Level I

Hardlines
Gap Body Gap Gap
Adult & Baby Gap Old Navy Athleta BRFS all
Kids Outlet
Brands

Critical Defects 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Major Visual
2.5 2.5 2.5 4.0 2.5 2.5 4.0 2.5
Defects

Minor Visual
4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Defects

2.5 (A)

Measurement ________
4.0 4.0 6.5 4.0 6.5 6.5 6.5
Audit* ___

4.0 (B)

0.25
OCR/Ticket
0.25 major 0.25 major 0.25 major 0.25 major 0.25 major 0.25 major 0.25 major
Audit
major

* = Defect is a Defect.

*(A) = Gap Body departments 165,167 & 168.

*(B) = Gap Body (excluding departments 165,167 & 168).

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Table 2: AQL Standards for Banana Republic

ANSI/ASQC Zi.4 1993 Single Sampling Plan, Level I = BR & BR UK

ANSI/ASQC Zi.4 1993 Single Sampling Plan, Level II = BR Japan & BR Monogram

BR & BR UK BR Japan & BR Monogram

Critical Defects 0.1 0.1

Major Visual Defects 2.5 2.5*

Minor Visual Defects 2.5 0

Measurement Audit* 2.5 Wovens & Denim** 2.5 Wovens (a) & Denim(a)**

4.0 Knits & Sweaters 4.0 Knits & Sweaters

OCR/Ticket Audit 0.25 0.1

major major

* = Defect is a defect.

* = Starting Spring 2010.

(a) = Except for Measurement which remains at level I sampling plan.

Note: The use of an AQL does not imply that the vendor has the right to supply any defective product to Gap Inc.
Therefore, Gap Inc.’s expectation is that the vendor will incorporate adequate controls in the manufacturing process and
quality inspections at appropriate stages to deliver a defect free shipment.

CRITICAL DEFECTS

A Critical Defect is defined as anything that can potentially pose a hazard or cause an injury or be considered harmful to
the product user. A Critical Defect can be, but is not limited to, sharp points and edges, broken needles, loose
components or other foreign items which are potentially harmful and/or may pose a hazard. Improper or inaccurate
country of origin or fiber, component content markings and Consumer Product Safety Commission (CPSC) “snug fitting
sleepwear” measurements that are greater than tolerance are also considered Critical Defects. (For details on design
restrictions for snug fitting children’s sleepwear please refer to Section III on Flammability outlined in the Softlines Manual
located on Gap Source Library (GSL).

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Visual Critical Defects

To find Critical Defects pertaining to product safety, component content markings and country of origin, the method used
is visual inspection.

Measurement Critical Defects

To find Critical Defects pertaining to “snug fitting sleepwear”, the method used is the measurement audit.

The AQL for appraising Critical Defects is 0.1

If a critical defect is found either during visual inspection or during measurement of snug fitting sleepwear audit, the audit
automatically fails and requires the entire lot to be inspected. All critical measurements must be removed before the lot
can be submitted for a second audit.

Procedure for Measurement Audit of “Snug Fitting Sleepwear”

• Determine if the product is “snug fitting sleepwear" by looking at the sketch on the front page of the spec (GSS). It
will state if it is a "snug fitting sleepwear" style subject to CPSC regulations. On the measurement page of the
Karat GSS governed by CPSC regulations will be in CAPITAL LETTERS. On the measurement page of the PLM
GSS governed by CPSC the initials “CPSC” will be at the beginning of each point of measure description.

• Use the standard measurement sampling plan as stated in the measurement audit procedures section of this
manual. (Refer to the Measurement Audit Sampling Plan: Page 18).

• Any CPSC regulated measurement - those in CAPITAL LETTERS or with the CPSC at the beginning of the
description - that is greater than tolerance on the plus (+) side will be considered a critical measurement defect.

• Any CPSC regulated measurement - those in CAPITAL LETTERS or with the CPSC at the beginning of the
description - that is greater than tolerance on the minus (-) side will be considered a measurement defect.

• The AQL for appraising Critical Measurement Defects is 0.1 and shipping decision should be made only when the
audit is in compliance.

MAJOR AND MINOR VISUAL DEFECTS

Visual defect is defined as a product flaw that prevents the product from realizing its full market value. There can be
several reasons for visual defects and can be attributed to fabric defects, defective trims or components, poor
workmanship, construction defects, poor housekeeping, poor handling, transportation damage, etc. The visual defects
are classified as Major or Minor based on the location on the garment.

Visual Audit Methods

There are two methods for auditing visual defects. The vendor should contact the GIS quality manager to get the
recommendation on what method to be used.

Option 1: Non-Destructive Visual Audit (audit performed before garments boxed).

Option 2: Visual Auditing begins after boxing/packing process has started.

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Visual Audit Forms and Reference Sheets

At relevant stages of the Visual Audit, use the following forms:

• Shipment Inspection Report (Appendix I, form #8).

• Visual Inspection Worksheet (to be used for non-destructive audits that occur over an extended period of time)
(Appendix I, form #7).

Please note these forms and sheets must be used as is during the Visual Audit. At relevant stages of the Visual Audit,
reference the Classification of Visual Defects Sheets (Appendix II).

VISUAL AUDIT SAMPLING PLANS

Table 3: Visual Audit Sampling Plan for BabyGap, GapKids, Gap Adult, Gap Body, Banana Republic, Banana
Republic UK, Old Navy, Athleta, BRFS, & Gap Outlet

ANSI/ASQC Z1.4 1993 Single Sampling Plan Level (I)

Shipment Size Garment Visuals Ticket Check (OCR)

Lot
Sample Size Critical AQL AQL AQL AQL
0.1
2.5 4.0 Pass/Fail 0.25
Pass/Fail
Pass/Fail Pass/Fail

0-500 20 0/1 1/2 2/3 0/1

501-1,200 32 0/1 2/3 3/4 0/1

1,201-3,200 50 0/1 3/4 5/6 0/1

3,201-10,000 80 0/1 5/6 7/8 0/1

10,001-35,000 125 0/1 7/8 10/11 1/2

35,001- UP 200 0/1 10/11 14/15 1/2

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Table 4: Visual Audit Sampling Plan for Banana Republic Japan & Banana Republic Monogram

ANSI/ASQC Z1.4 1993 Single Sampling Plan Level (II)

Shipment Size Garment Visuals Ticket Check (OCR)

Lot
Sample Size Critical AQL AQL AQL

0.1 2.5* 0.1

Pass/Fail Pass/Fail Pass/Fail

1-25 5 0/1 0/1 0/1

26-50 8 0/1 0/1 0/1

51-90 13 0/1 1/2 0/1

91-150 20 0/1 1/2 0/1

151-280 32 0/1 2/3 0/1

281-500 50 0/1 3/4 0/1

501-1,200 80 0/1 5/6 0/1

1,201-3,200 125 0/1 7/8 0/1

3,201-10,000 200 0/1 10/11 0/1

* = Defect is a defect.

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VISUAL AUDIT PROCEDURE FOR NON-DESTRUCTIVE

This type of audit may take place over an extended period of time i.e. more than one day. When the non-destructive visual
audit is performed over more than one day, the results are recorded on the Visual Inspection Worksheet (Appendix I, form
#7).

This worksheet must be reviewed and signed by factory management. The information on this worksheet must be
transferred and attached to the Shipment Inspection Report (Appendix I, form #8). If any defects are found during this
visual audit, a Gap Inc. representative will ensure that corrective action is taken to address the defects.

Sample Size for Auditing

Sample size that is to be used for auditing will depend on the size of the lot and sampling plan used. The lot size is the
total number of units in a given shipment. Samples are to be taken randomly and must include all sizes and colors.
Therefore in such cases samples should be drawn based on the ratio of each size and color to the total units in that
shipment.

When multiple Purchase Orders are ready for shipment, they can be combined and the audit performed on a sample
taken from this combination. However, if the audit fails all Purchase Orders will fail and if it passes all Purchase Orders
will pass.

Major Defects

During this audit any defects as described below will be counted as major:

• Incorrect size strip (31x31 strip on a 34x31 pair of pants).

• Incorrect flasher.

• Incorrect logo label (wrong size).

• Incorrect non-OCR (BARCODED) price ticket (These items must correspond to the Bill of Materials (BOM) as to
item number and size).

• More than one major defect per product should only be counted as one major defect.

• Above items are coordinated by size and style.

Minor Defects

If consistent minor defects are seen that affect the overall appearance of the product, the shipment audit fails. This failure
must be brought to the attention of the production representative. However, there is no need to notify production
representative when the minor defects are within acceptable range.

Labeling

Incorrect country of origin and/or incorrect fiber content label on any portion of the shipment will result in failure of the
shipment. For details on country of origin information please refer to Softlines Manual Section I, located on Gap Source
Library (GSL).

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Shade Variation

If shade variations occur within a shipment, the production representative must be notified and samples should be sent for
approval. The vendor should also re-inspect 100% and sort units by shade band. The results of shade variation observed
during re-inspection must be reported to the production representative for a decision. If the production representative
requests that the shades be separated then all cartons should be checked and accordingly segregated for different
shades.

OCR Audit

Any trim that contains OCR (BARCODE) information must be audited during the visual auditing process. This will be a
separate audit and results must be posted to the Shipment Inspection Report (Appendix I, form #8). When an incorrect
OCR trim/label/ticket is detected, the facility must perform an additional audit of OCR trims to determine the severity of the
problem as well as the correction.

MEASURING THE WEIGHT OF SWEATERS

Gap, Old Navy and Athleta Sweaters:

Three pieces of the median size (the average of the smallest to the largest in the range) are weighed. The results are
added together, and then divided by three (3). This will determine the average weight per sweater.

Banana Republic Sweaters:

Sweaters of every size in a program must be weighed individually and calculated for average weight based on the
required size ratio in a placement memorandum according to the below listed procedures:

• Assuming that the required size ratio is 1:2:2:1 (XS/S/M/L).

• Randomly select four sweaters of every size; weigh them individually and record the results for the interim audit
report.

• Calculate the average weight of each sweater size by adding the four (4) readings together and dividing by four
(4).

• Based on the size ratio 1:2:2:1, the average overall weight of a sweater is calculated in the following manner:

(avg. wt. of sizes “xs” x size ratio 1) + (avg. wt. of size “s” x size ratio 2) + (avg. wt. of size “m” x size ratio 2) +
(avg. wt. of size “l” x ratio 1) /six (6) = overall weight of sweater.

Visual Audit Acceptance Criteria

• If the number of visual defects is equal to or less than the number allowed per the sampling plan, the audit
passes. The defective products found are to be sent back for repair or seconds.

• If the number of visual defects is more than the number allowed, the audit fails. The production representative is
to be notified to determine the disposition of the shipment. The vendor has the option to perform 100% inspection
to get an assessment of percentage that is defective.

• If the audit fails, record in the comment column as to when the re-audit will take place. When the re-audit is done
use the same procedures as new audit, including packing.

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• Pass or fail status of Visual Audit is determined based on the sample plan and the corresponding AQL Standards
for each Brand as listed in Tables 1, 2, 3 & 4.

MEASUREMENT AUDIT PROCEDURE

Measurement Defects

While performing a shipment audit, all measurements that are out of tolerance are considered “Measurement Defects.”

Procedure for Measurement Audit:

Measurements should be taken on products after wash, after press and sometimes before packing.

Measurement audits must be done using a metal or fiberglass tape measure. Vinyl and plastic tape measures are
prohibited.

• Fiber glass tape measures should be calibrated using a Metal ruler.

• Vendor’s in-house QA supervisor must calibrate the QA /DA fiberglass tape measures monthly.

• All calibrations should be recorded and dated for reference as requested by Gap Inc QA.

Only critical measurement points highlighted on the specification sheet (PLM specification sheets utilize QC “yes” boxes
to denote the criticals) are taken at the time of the shipment audit. A product with more than one measurement defect is
counted as one defect only.

• Select samples at random.

• Measure products at critical measurement points which are noted with a QC “yes” on the PLM specification sheet.

• Record all measurements taken on the Finished Garment Measurement Sheet (Appendix I, form #9).

• Highlight all measurement defects but make sure that a product with more than one measurement defect is
counted as one defect only.

Determining the Acceptance of a Measurement Audit

Acceptance is based on the AQL (See AQL Standards Tables #1 - 4) pass/fail levels for Measurement defects.

Accept

• An audit is considered acceptable when total numbers of measurement defects is less than or equal to the
number of defects allowed (see guideline and calculations below).

Fail

• An audit is considered failed when total numbers of measurement defects exceed the number of defects allowed
(see guideline and calculations below).

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Exceptions

The above criteria does not apply to the children’s “snug fitting sleepwear” program as it is governed by the CPSC
Children’s Snug Fitting Sleepwear Regulations.

MEASUREMENT AUDIT SAMPLING PLANS

Table 5: Sampling Plan for Measurement and Pass/Fail Chart – Single Color

ANSI/ASQC S1.4 1993 Single Sampling Plan Level (1)

Sample Size AQL 2.5 AQL 4.0 AQL 6.5

Lot Size by Color Pass/Fail Pass/Fail Pass/Fail

Five (5) sizes or less 20 1/2 2/3 3/4

More than five (5) sizes 32 2/3 3/4 5/6

Table 6: Sampling Plan for Measurement & Pass/Fail Chart– Multiple Colors

ANSI/ASQC Z1.4 1993 Single Sampling Plan Level (1)

Sample Size AQL 2.5 AQL 4.0 AQL 6.5

Lot Size by Color Pass/Fail Pass/Fail Pass/Fail

1 Color 20 1/2 2/3 3/4

2 Colors 32 2/3 3/4 5/6

3 Colors 50 3/4 5/6 7/8

4 Colors 80 5/6 7/8 10/11

5 Colors 80 5/6 7/8 10/11

More than (5) Colors 125 7/8 10/11 14/15

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Vendor Managed Inventory (VMI) Audit Procedures

Gap QA will check the pre production sample, take part in pre production meetings and will conduct random shipment
audits at the vendor site.

Select regions have empowered Gap Designated Auditors (DA) to release the goods for shipment if no quality issues are
found. Any audit (measurement, visual, OCR, packing) that fails is repaired/reprocessed and re-audited before shipment.
If the DA fails an audit they will contact Gap QA for disposition. If the audit passes the DA audit, the PO will ship. There
are safeguards in place around this process, and Gap will de-certify a DA if they find issues.

ALL AUDITS MUST PASS CURRENT MEASUREMENT, VISUAL, OCR, AND PACKING STANDARDS AS PER
OUR ESTABLISHED SAMPLING TABLES BEFORE SHIPPING TO GAP INC. DISTRIBUTION CENTERS (DCS).

Production Lot and DPO Audits

FOR VMI STYLES, MEASUREMENT, VISUAL, AND OCR AUDITS ARE PERFORMED ON PRODUCTION LOTS
VERSUS DPO’S BECAUSE THE UNITS ARE READY EARLIER THAN THE ACTUAL SHIP DATES. IF THERE IS
TO BE ANY REWORK OR REPROCESSING THIS ALLOWS THE VENDOR THE TIME NEEDED TO MAKE THE
APPROPRIATE CORRECTIONS PREVENTING DELAY OF SHIPMENTS. PRODUCTION LOTS ARE DEFINED
AS UNITS THAT ARE READY TO BE PACKED WITH APPROPRIATE SIZE AND QUANTITY BREAKDOWNS.

PACKING AUDITS ARE PERFORMED AT THE DPO LEVEL VERIFYING COUNTS, LABELING, AND
ASSORTMENT ACCURACY.

PACK AUDIT REQUIREMENTS

The vendor is required to perform the packing audit to determine packing accuracy compliance. The shipment is to be
checked for assortment accuracy, counts verification, and labeling accuracy. This is the final audit before goods are
shipped.

There are two types of packing audits, one done by the vendor entitled Factory Audit (“FA”) and the other done by Gap
Inc. QA entitled Acceptance Audit (“AA”) to assess the packing accuracy. It is necessary to use “FA” and “AA” terms to
differentiate similar terms used in the Distribution Centers.

The “AA” is the responsibility of the facility/vendor and as per Gap Inc.’s Policy this audit is mandatory. Gap Inc.
QA or those designated by Gap Inc. to perform shipment audits will be responsible for a full “AA” of the vendor.

Pack Audit Defects include the following

• Incorrect quantity.

• Carton labeling errors.

• Incorrect Pre-Pack.

o Assortments.

o Amounts.

o Pre-Pack Stickers.

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• Carton not as specified (size and construction).

• Crushed or damaged cartons.

• Use of wire or metal strapping to strap cartons.

Pack Audit Procedure

• When performing the pack audit, the vendor must place “FA” on each box audited. This “FA” must be placed in a
one inch by one inch space (1x1) at the top right hand corner of the box information label (the label containing
Purchase Order, style, quantity, etc.). This “FA” must not be covered with tape or other labels because it will be
used as a guide by Gap Inc. field personnel and Gap Inc. distribution centers to verify audits and assess these
cartons.

• Upon failure of an assessment, the auditor will continue the random sampling, using the Factory Pack Audit
Sample Plan (see Table 14). If the Factory Pack Audit fails, the factory must then take appropriate action to
correct the problems found. Discuss the results with factory representatives. Receive and record the factory
action plan to correct the issues found in the audit. A re-audit will then be performed (not assessment) to verify
the packing errors were corrected. A re-audit will be performed and recorded on a separate Shipment Inspection
Report (Appendix I, form #8). This re-audit must be attached to the original report.

• Upon completion of this assessment and/or audit, complete the appropriate section in the Shipment Inspection
Report (Appendix I, form #8). Record the results of the “PA” and the results of the “FA”.

• If problems found create shipping delays, notify the merchandiser/production representative for corrective action.

Table 7: AQL and Sampling Plan for Pack Audit for Factory/Vendor:

ANSI/ASQC Z1.4 1993 Single Sampling Plan Level II - 0.65 AQL

Factory Pack Audit Sample Plan - AQL 0.65

# of cartons Sample Size Pass Fail

5-15 3 0 1

16-50 8 0 1

51-150 20 0 1

151-500 50 1 2

501-1,200 80 1 2

1,200- UP 125 2 3

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FULL CARTON PACK PROGRAMS

Each vendor who participates in Gap, Inc.’s full carton pack program should establish a packing audit system.

Prototype Pack

For each Full Carton Purchase Order, the vendor is required to have in their packing department a prototype packed
carton for training. This prototype is to be approved by Gap QA.

Sample Size

The Vendor should determine what quantity of cartons can be packed, and held, before closing the cartons.

This carton quantity becomes the population from which the sample is drawn. The way a sampling plan works is the larger
the population the smaller the sample size is as a percent of the population. To optimize the inspection time, the
maximum quantity of cartons packed and labeled but not closed is desired. Once that number is determined, the vendor
should choose the sampling size from the pack audit’s sampling plan (0.65 AQL).

FULL CARTON PACK AUDIT PROCEDURES

The factory is responsible for the full carton pack audit. The following are procedures for performing a full carton pack
audit:

• It is important for the vendor to keep the population size at a level that takes into consideration the staging area
available as well as the factory’s accuracy history. If an audit does not take place until the population is large, a
great deal of extra handling will take place if it fails. We recommend that in the beginning, a vendor that is new to
full carton pre-packs choose a small population to audit until history can be developed and expertise learned.

• A same criterion for major packing errors is to be used as a normal shipment audit; use the same criterion as
listed under Pack Audits (FA and AA procedures).

• Gap Inc. will perform an assessment after the audit is completed by the factory/vendor.

• Should vendors allow improperly packaged merchandise to ship, it will be the responsibility of the vendor to pay
for any special handling required later in order to correct those errors at Gap Inc.’s distribution centers.

SECONDS AND OVERRUNS

Vendors must be reminded that all seconds or overruns sold to anyone other than Gap Inc. must have all Gap Inc. logos,
labels, or other identification removed in accordance to the guidelines outlined in the Vendor Handbook. After all are
removed, then an audit must be scheduled with Gap QA to verify that the removal has been executed correctly.

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COMMUNICATION AND RECORDS

The vendor is responsible to communicate all failed shipment audits to merchandising and/or production representative
immediately for resolution. The vendor will keep all records of the audit for review by QA or any other person designated
by Gap Inc. It is mandatory for the vendor to maintain audit records for a period of 2 years and safety related records such
as “children’s snug fitting sleepwear” audits; snap and button attachment audits etc. for a period of 7 years.

While Gap QA must maintain a close communication with vendor’s in-house QA team, it is important to ensure that the
factory manager/production manager/line supervisor are also informed of quality and production issues to enable timely
action to address the issues.

In regards to product safety issues, Gap QA must maintain a high level of vigilance, and in addition to informing the
merchant, these issues must be highlighted to the QA manager/spoke office manager and GIS product safety team
copied on issues. The communication process to GIS product safety team is crucial when it involves out of tolerance
measurements for “children’s snug fitting sleepwear”, insecure snaps and buttons or uneven foundation issues. These
issues could have legal implications if not resolved.

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SAFETY PROCEDURES

Please refer to Softlines Manual, “Product Safety Standards & Procedures”, located on Gap Source Library (GSL).

NEEDLES & FOREIGN METAL CONTAMINATION

Gap Inc. will not accept any product containing foreign metal contaminants such as needles, needle fragments, or other
sharp metal objects (metal staples, pins, prongs, footwear nails / screws, etc.). In order to ensure product is free from
needles or other types of foreign metal contamination, Gap Inc. has adopted the following control procedures, which all
apparel manufacturers are required to implement. We further encourage each factory to go above and beyond with
additional means to ensure the safety of all products produced for Gap Inc.

CHARGEBACK POLICY

Violation of Gap Inc.’s needles and foreign metal contamination policy is unacceptable. When foreign metal contaminants
are found in Gap Inc. product, the quality control for the entire shipment is questioned and our reputation suffers. Thus, in
order to ensure vendor compliance with this policy to the highest degree, we have amended our Vendor Handbook such
that if a needle (whole or broken) or foreign metal contaminant is found in a product after shipment from the factory, a
chargeback will be assessed to the vendor.

Chargeback Policy Phases:

st
1 Violation  The vendor will be charged US $10,000 payable within 15 business days of notification.

nd
2 Violation  If the violation is from the same facility and occurs within 1 year of the first violation, the facility that
produced the product will be terminated as a Gap Inc. supplier.
 If the violation is from a different facility or occurs after 1 year from the first violation, a back charge of
US $25,000 will be assessed, payable within 15 business days of notification.

rd
3 Violation  If the violation is from a facility with a previous violation within 1 year of the second violation, the
facility will be terminated as a Gap Inc. supplier.
 If the violation is from a different facility than the first or second violations or occurs after 1 year of any
previous violation at that facility, a back charge of US $50,000 will be assessed, payable within 15
business days of notification.

th
4 Violation  Regardless of the facility which produced the product or when the fourth violation is found, the vendor
will be terminated as a Gap Inc. supplier.

Note: Any needle or foreign metal contamination incident occurring more than 3 years after the previous incident will be
treated like a first violation.

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For all violations, vendors are required to pay chargebacks via a bank check made out to Gap Inc. Vendors must mail
check payments to Gap Inc. corporate offices in San Francisco, CA as directed by their penalty notification letter. Only
under special circumstances, payments may be offset against next Purchase Order at Gap Inc.’s discretion.

Any chargeback or offset imposed under this policy will not diminish or affect any liability or indemnification obligations of
the vendor pursuant to its agreements with Gap Inc in the event that Gap Inc. is sued.

NEEDLE CONTROL PROCEDURES

Storing and Issuing Needles

The following procedures are required to control storage and issuing of needles to ensure that there are no spare needles
on the production floor:

• Operators should not possess any spare needles.

• Replacement needles should be stored in a locked cabinet accessible only by authorized personnel. For all work
shifts including overtime, there must be a responsible person designated to:

o Receive and store new needles.

o Issue new needles to the production floor / mechanics.

o Receive used needles in return for each one issued and for keeping records which document this.

• The Needle Inventory Log must record all needles received and issued. All needles must be accounted for (i.e.
the number of used and broken needles must reflect the daily issued quantity).

• All types of worn needles (machine, hand, tag-gun, etc.) must be removed from the sewing floor. Their removal
should be documented on and attached to the Used / Broken Needle Control Log. In certain cases, regional
Gap Inc. QA Managers may authorize different needle disposal methods such as disposing used / broken needles
in biohazard containers to support country-specific safety regulations. Regional QA Managers may also provide
direction on the disposal of old logs that exceed retention periods.

• The Gap Inc. Field QA or Product Safety Specialist will review these logs during their site visits and verify
adherence with procedures for issuing and disposing of needles.

Controlling Broken Needles

The following procedures are required to ensure in the case of needle breakage, all fragments are found or the potentially
contaminated garments / components are destroyed. Every effort should be made to minimize needle breakages.

• When machine, hand-sewing, or tag-gun needles break, every effort must be made to locate all fragments.

• The bundle which the operator is sewing must be thoroughly examined to locate broken fragments.

• The machinery, including the sewing machine throat plate, feed dogs, and the bobbin case must be checked.

• Use of a magnet to locate all fragments is recommended.

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• Good housekeeping of machines and all sewing areas is a requirement that assists in finding broken needle
fragments. Broken or used needles should not be around machines or on factory floor.

• If all fragments cannot be found, the component / garment being sewn and any components / garments on the
machine must be taken to a separate bin in the plant for further examination. The separate bin should be painted
red for identification purposes. A metal detection unit (hand-held or fixed) should be used to help locate the
needle fragments. An authorized person should conduct and document this examination.

• Components / garments may be returned to the sewing floor when all fragments are located, or all components /
garments have passed through needle detection without any alarm.

• If the factory does not have a needle detector and the fragments cannot be found, then the components /
garments in the work area of the needle breakage must be destroyed.

• The breakage of all types of needles, including recovered needle fragments, must be recorded in the Used /
Broken Needle Control Log immediately.

• For worker safety, contaminated needles, those that have punctured human skin (broken or unbroken) must be
disposed of in a blood-borne pathogen container.

o Please refer to Global Compliance and/or U.S. Occupational Safety and Health Administration (OSHA)
guidelines for further details on proper disposal of blood-borne pathogen containers.

o If this step is required, the factory must record in the Used / Broken Needle Control Log why the needle
parts were not kept.

• Every effort should be made to prevent needle breakages and the following best practices may assist in this:

o Needles are checked to ensure they are in good working condition and changed according to a specified time
frame. The number of needle changes per shift depends on the type of fabrication, sewing operation, and the
type of needle.

o Review Used / Broken Needle Control Log at least daily to identify trends so that prompt action can be
taken to prevent excessive needle breakage. Worn out, out of alignment machine parts, or operator handling
may cause needle breakage.

Controlling Hand-Sewing or Tag-Gun Needles

The following procedures are required to control hand-sewing and tag-gun needles:

• All hand-sewing or tag-gun needles must be accounted for and the number of needles issued must tally with the
number of used / returned needles for each shift.

• Appointed personnel must tally hand-sewing or tag-gun needles at the operator’s lunch break and at the end of
every shift. These results must be recorded on the Needle In & Out Log (Hand-Sewing, Tag-Gun Needles).

• Any broken or changed hand-sewing or tag-gun needles must be logged onto the Used / Broken Needle Control
Log. See Controlling Broken Needles section.

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Needle Control for Embroidery and Quilted Fabric

All the procedures in this chapter also apply to embroidery (hand and machine) and quilting operations. It is the vendor’s
responsibility to enforce compliance at their outside suppliers / contractors. In addition, the following procedures apply to
full width quilted / embroidery fabric:

• For full-width quilted / embroidery fabric, if the broken fragment cannot be located, a special sticker “Broken
Needle – Special Handling” must be attached at the end of each roll. Please see below for content and format
for the sticker. Sticker must have neon yellow ground color as shown below.

• All the panels cut from the roll with the “Broken Needle – Special Handling” sticker must pass through the
needle detector before being passed to the line for assembling process.

5 inches

8 inches

OTHER SHARP METAL OBJECT CONTAMINATION

In addition to whole or broken needles, the following are additional types of sharp metal object contaminates:

• Bundling wire • Razor blades / utility knives

• Footwear nails / screws • Scissors / clippers

• Mechanical tools (screwdrivers, hammers, etc.) • Straight pins

• Metal paper clips • Staple

• Prong snaps and rivets

Factories should take all possible measures to ensure that these items do not enter Gap Inc. product. The following
control procedures are required:

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 • No pins, wires, staples or metal clips may be used in any manufacturing process, including bundling, tacking,
securing components, or packaging of any product. Also, none of these items may be used in the sample room
nor should pins be used for notice boards in sewing room.

• If metal components must be used for a specific garment manufacturing process, such as laying fabric, the factory
must maintain a record to control the use.

• Scissors and clippers must be secured to workstations to prevent them from being accidentally packed with
garments. When they cannot be secured, an issue log must be maintained.

• The production area must be kept free of such dangerous items as broken glass, splinters, etc. This precaution is
particularly important as these items will not be picked up in needle detection. Failure to control these types of
dangerous items in production may also result in a vendor chargeback.

NEEDLE DETECTION PROCEDURES

Gap Inc. requires that ALL factories producing product in the following Brand and Age divisions utilize a needle
detector prior to packing:

• Baby (All Gap Inc. Brands)

• Kids (All Gap Inc. Brands)

• Japan Market (All Gap Inc. Brands; Adult, Kids, Baby)

• Intimate Apparel (All Gap Inc. Brands; Adult, Kids, Baby) including underwear/shirts, camisoles, robes,
sleepwear, and swimwear. Note: bras and swimwear-constructed like bras (underwire, hook & eye, etc.) are
excluded due to the high number of stainless steel trims that will cause false alarms during needle detection.

Kensin Components / Materials

All metal trims used in the above product categories should be developed and ordered as Kensin trims. Kensin trims
(zippers, shanks, rivets, buckles, snaps, hook & bar, D-rings, grommets, eyelets, etc.) contain metal components that can
be passed through the needle detector without alarm.

• Factories must have full accountability for their own needle detection procedures. Any potential needle detection
issues should be addressed the development stage and no later than Pre-Production meetings.

• Factories should re-confirm that ordered trims are kensin by testing them on needle detection machines prior to
the start of production.

Non-Kensin Components / Materials

Certain products may not be able to pass through needle detectors because they have non-kensin components or other
types of materials which may trigger alarms during needle detection. This includes products with leather materials, sensor
tags, hard tags, etc. Some types of apparel (textile, non-textile, or leather), footwear (indoor slippers, leather, textile, or
synthetic), and soft / stuffed toys may also trigger alarms during needle detection. In these cases, factories should follow
these guidelines:

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 • It is recommended to scan sewing components (for those that are able to pass through needle detectors) prior to
the assembly of the finished product. This practice provides an additional checkpoint to monitor critical processes
that have a high possibility of incurring broken needles (e.g. bags, footwear, etc.).

• Factories must take extra caution when attaching sensor tags or other metal items. Attach them after the needle
detection process to ensure that there is no metal contamination in products.

• Use of Hand-Held Needle Detectors

o Factories should NOT consider hand-held detectors to be a replacement for approved tunnel-type needle
detectors. All products must still pass through tunnel-type needle detectors prior to the attachment of non-
kensin components / materials. Hand-held needle detectors can be used after attachment to provide greater
assurance of no metal contamination before packing.

o Factories should scan products with hand-held needle detectors (especially along seams) when regular
needle detection is not feasible on products containing non-kensin components / materials.

Needle Detection Machine Requirements

The needle detector is an extra safeguard to prevent against foreign metal contaminants in the product to be shipped.
However, the use of needle detectors must not replace due diligence in following Gap Inc.’s Needles and Foreign Metal
Contamination Control Procedures.

• The number of needle detectors must meet the peak production capacity of the facility.

• Needle detectors must be tunnel-type with a conveyer system and be able to detect ferrous metal with sensitivity
less than 1.2 mm sphere.

Approved Needle Detectors by Country of Origin / Manufacture

United Kingdom Japan Korea China

Cintex Hashima Dae Kwang (Besta) Easement

Lock Nissan (Mother’s Eye)

Safeline Sanko (Nikka Densok)

YDS

For contact information and further details on approved models, vendors should contact their GIS Hub office.

• The needle detector must be kept in a permanent location according to supplier’s instructions with a clear area
around sufficient to avoid electrical interference.

o A stabilizer / regulator is to be installed to minimize false alarms caused by power fluctuations, according to
the supplier recommendations.

o If needle detector is relocated, it must be re-calibrated by the equipment supplier.

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 o The needle detector must be serviced according to the supplier’s maintenance requirements. Records must
be kept of these services and any supplier recalibration. Gap Inc. QA or product safety officer will check these
records during safety audits.

• All personnel involved in operating and supervising the needle detector must be trained by the supplier to
understand the system, the operating procedures, and how to make minor adjustments.

• A calibration / sensitivity check must be carried out at least at the beginning, middle, and end of each working
shift, using the 1.2 mm diameter test card supplied with the unit.

o This calibration must be recorded in the Needle Detector Calibration Log. This log should be maintained by
the factory’s Product Safety Coordinator.

o If the needle detector fails during a calibration check, the machine must be stopped immediately and re-
calibrated by a trained operator. All products passed through after the previous calibration must be re-
checked.

o Once a needle detector fails a calibration test, it must not be used until corrected. Access to a back-up needle
detection unit is therefore highly recommended.

• A log is to be maintained at the PO level for each style passed through the needle detector. The log must be
signed by the packing supervisor. A copy is to be available for the Gap Inc. QA at final audit to verify that all
garments have passed through needle detection.

• Procedures must be in place to ensure that garments, including repaired and re-inspected garments, are not
released to packing without passing through needle detection. The following best practices can assist in this:

o Garments awaiting needle detection and those that have passed must be clearly separated and identified.

o Locating the needle detector in the finishing area such that the only access to the packing section is via the
needle detector. See Metal Free Detection & Packing Zone section.

• When the alarm sounds, the garment must be put to one side in a clearly marked area and a designated person
must check the garment for metal contamination.

o Use of a hand-held needle detector is recommended.

o If no metal contamination is found, the garment must be passed through the needle detector again. If garment
passes needle detection, it may be returned to the production area / passed to packing.

o If the alarm sounds on the second pass, the garment must be searched again for metal contamination. If the
problem cannot be identified, the garment must be destroyed and management informed.

o If metal contamination is found, once it has been removed, the garment must pass through detection again
before being returned to production/passed to packing. This is to verify that is there is more than one piece of
metal contamination found.

• Any metal contamination found must be logged in the Metal Detection Log and must include corrective action
taken to prevent a reoccurrence.

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METAL-FREE DETECTION AND PACKING ZONE

Gap Inc. requires that ALL factories producing product in the following Brand and Age divisions maintain some
type of segregated metal-free detection and packing zone:

• Baby (All Gap Inc. Brands)

• Kids (All Gap Inc. Brands)

• Japan Market (All Gap Inc. Brands; Adult, Kids, Baby)

• Intimate Apparel (All Gap Inc. Brands; Adult, Kids, Baby)

This zone should contain needle detectors and be located adjacent to the packing area. After products pass through
needle detectors, they should be packed into sealed boxes. Only sealed boxes should be moved to storage or shipment
area/s. Guidelines for this area include:

• Only those products passing needle detection are allowed in the metal-free zone.

• Repaired and / or re-inspected goods are only allowed in the metal-free zone after they have passed through
needle detectors.

• Only authorized workers are allowed to enter the metal-free zone. Authorized workers’ photos should be posted at
the entrance to the metal-free zone.

• While in the metal-free zone, workers are not allowed to use any needles or metal tools such as scissors,
clippers, cutters, knives, etc.

• At least 2 operators should be trained on how to properly run needle detectors and ensure that products are
properly scanned at all times.

• It is strongly recommended, but not mandatory, that metal-free zones be located within an enclosed area or room,
depending on factory construction and space.

VERIFICATION OF FACTORY’S NEEDLES AND FOREIGN METAL CONTAMINATION

CONTROL PROCEDURES

This is a clearly defined method to verify that factories are following Gap Inc.’s needles and foreign metal contamination
procedures. All Gap Inc. QA representatives who conduct in-factory audits on Gap Inc.’s behalf such as sourcing
channels / agents / QA, and product safety personnel are responsible for this task.

The inspection steps outlined below will allow you to quickly determine if factories are correctly following Gap Inc.’s
needles and foreign metal contamination control procedures:

• On a regular basis you should walk through the production lines to verify needle control procedures and complete
the Product Safety Standard Checklist.

• Ask a few operators at random to explain what they do if a needle breaks. If they are not following the correct
procedure, discuss your findings with the factory manager.

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 • Search the floor for used / broken needle parts or other types of metal contamination. Collect and save any you
find to discuss with factory management.

• Check around a few operators’ machines for spare / broken needles or other types of metal contamination. Lift the
machine head to see if used or broken needles are present in the oil pan. Collect and save needles to discuss
with factory management.

• Check the Used / Broken Needle Control Log for accuracy. Sign and date the log if it is in order. Make sure all
broken needle parts have been found and are taped to the log for each entry. If only part of the broken needle is
attached to Used / Broken Needle Control Log, further investigation is required.

NEEDLE CONTROL LOGS

As described above, various logs are required to track the enforcement of Gap Inc.’s needles and foreign metal
contamination procedures. Blank versions and examples of the following logs are included in Appendix III: Needle &
Foreign Metal Contamination Logs:

• Needle Inventory Log

• Used / Broken Needle Control Log (Machine, Hand-Sewing, Tag-Gun Needles)

• Needle In & Out Log (Hand-Sewing, Tag-Gun Needles)

• Metal Detection Log

• Needle Detector Calibration Log

If needed, additional columns and information can be added to the forms for documenting information. However existing
columns/formatting may not be removed from the log.

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