Factory audit

McDonald's, a large chain fast-food group, mainly sells hamburgers, french fries, fried chicken, sodas, salads, etc. In many countries, McDonald's represents an American lifestyle. The early translation name for the Chinese mainland region was "McDonald's Fast Food".

On July 4, 2010, American media reported that the McDonald's chicken sold contained chemical substances such as silicone polymers and tert-butylhydroquinone. In mid-January 2012, McDonald's raised the prices of some products in the Chinese market. In May 2012, McDonald's quietly launched its second price increase of the year, with an increase of 16.6%.

Today, McDonald's has become the leading global retail food service company. By the end of 2019, there were over 38,000 McDonald's restaurants worldwide, providing high-quality food and services to more than 69 million customers in over 100 countries and regions every day.

When conducting McDonald's factory inspection consultation, in addition to understanding the behavior code of the suppliers, it is also necessary to know the process of the factory inspection. The McDonald's factory inspection consists of 5 steps: pre-inspection briefing meeting, sample review, worker interview, factory inspection, and summary meeting.

1. Pre-inspection briefing meeting

Copy of the supervision authorization letter (Chinese/English); Overview of the inspection procedures; Request for assistance needed on the day.

2. Sample review

Review documents according to the "Factory Inspection Checklist" of McDonald's (see Appendix 1); Record sampling; Present policies and routines; Select employees for work interviews, compare with corresponding records and training records; The auditor may request to copy documents to demonstrate compliance with McDonald's requirements.

3. Worker interview

An important element of the inspection, conducted in a one-on-one format, the auditor will conduct interviews with employees in the factory inspection or select employees for interviews, the number of employees interviewed is equal to the number of document reviews, the auditor can increase the number of interviews as needed to improve accuracy.

The purpose of employee interviews: Direct communication with employees, obtaining information that cannot be obtained from other inspection procedures, comparing with other materials, ensuring accuracy and consistency, understanding factory operations from the employees' perspective.

4. Factory inspection

Inspect the overall situation of the factory, including dormitories and kitchens; This section also includes environmental protection, health, and safety; The auditor pays attention to whether there are child laborers, whether employees are abused or treated unfairly; Select employees for interviews.

5. Summary meeting 

TESTCOO

TESTCOO

McDonald's 

Appendix 1: List of McDonald's Factory Inspection Materials 

I. Management Department: 

Government documents 

1) Business license, Tax Registration Certificate (Local Tax, Central Tax) 

2) Environmental Impact Assessment Report, Pollution Discharge Permit 

3) Fire Inspection Report 

4) Safety inspection report for the building structures of the factory and dormitories 

5) Last year's social security annual review qualification certificate 

6) Social security contribution records (monthly, and can be queried through computer network) 

7) Government Notice on Annual Minimum Wage Standards (Latest) 

8) Government documents on social insurance contributions (latest) 

9) Food Court Sanitation Permit 

2. Certificates / Reports / Agreements 

Security Guard License (for all security guards) 

2) Emergency Medical Technician Certificate (for all emergency medical technicians) 

3) Health certificates of the cafeteria staff (valid within the specified period) 

4) Safety Director Certificate 

5) Electrician's License (with annual inspection) 

6) Electrician's Certificate (with annual inspection) 

7) Elevator Operator Certificate (with annual inspection) 

8) Inspection reports for pressure vessels, pressure valves, and pressure gauges 

9) Indoor hygiene inspection report 

10) Occupational Disease Physical Examination Report 

11) Compressor inspection report (valid within the specified period) 

12) Drinking water test report (one copy for each dormitory and factory area per year) 

13) Elevator annual inspection report and certificate of conformity (valid within the specified period) 

14) Medical Emergency Response Agreement (valid for a certain period of time) 

15) Medical waste disposal agreement and transfer records (for the past year) 

16) Hazardous Waste Transfer Agreement and "Transfer Form" 

17) Voluntary Overtime Work Agreement (valid for a certain period of time) 

18) Outsourcing agreement for the cafeteria (if applicable) (validity period) 

19) Security outsourcing agreement (if applicable during the validity period) 

3. Union Information 

1) Union Activity Files 

2) Employee representative ballots, vote count results, and notification of employee representative announcement 

3) Employee representatives' photos (The list should be updated in a timely manner and records of supplementary elections should be kept) 

4) Record of communication between employee representatives and senior management (once every two months) 

5) Employee suggestions and complaints records, as well as handling records 

4. Chemical Material Safety Data Sheet 

1) Chemical List 

2) MSDS (Material Safety Data Sheets) for all chemicals 

3) Chemical Safety Inspection Record (once a month) 

4) Chemicals Usage Record (once per month) 

5. EHS Information 

1) Factory floor plan 

2) Process Flow Diagram 

3) Firefighting organizational structure diagram 

4) EHS organizational structure diagram (must include employee representatives) 

5) Health and Safety Meeting Minutes (held every two months, and employee representatives must attend) 

6) EHS inspection records (once a month) 

7) Electrical safety inspection records (once a month) 

8) Fire drill photos (twice a year) 

9) Fire drill plan (twice a year) 

10) Fire Drill Report (Conducted twice a year) 

11) Fire Equipment Statistics Table (once a month) 

12) Fire inspection records (fire extinguishers, fire hydrants, alarm bells, emergency/exit indicator lights, passageways - once a month) 

13) Photos of emergency drills and emergency training registration forms (once a year) 

14) Medication Usage Record (once per month) 

15) Work injury and illness statistics and corrective measures (performed monthly, each time including a report on the investigation and handling of work injuries. If a work injury claim is made, relevant documents must be submitted) 

16) Emergency kit inspection record (once a month) 

17) List of labor protection equipment for each process (once a month) 

18) Labor protection equipment usage record (once a month) 

19) Labor protection equipment inspection records (once a month) 

20) Identification and Control of Risk Factors (Assessment once every six months) 

6. Welfare and Logistics Records 

1) Employee benefits/activity records 

2) Social Fundraising Records 

3) Method for calculating employee salaries 

4) Staff salaries of the cafeteria (once a month) 

5) Arrange the schedule (once a month) 

6) Security personnel salary (once per month) 

7. Internal Audit Management Review 

1) Internal Audit Plan 

2) Internal Audit Checklist 

3) Records of the opening and closing meetings of the internal audit 

4) Measures for Non-compliance Items in Internal Audit 

5) Internal Auditor Certificate 

6) Internal Audit Report 

7) Management Review Plan 

8) Management Review Sign-in Sheet 

9) Management Review Report 

8. Document Control Materials 

List of system documents 

2) Document Distribution and Collection Record 

3) Recruitment Advertisement 

4) Job Description 

9. Relevant Records 

Toilet inspection record (performed once a month) 

2) Eye-washing station inspection records (performed once a month) 

3) Cleaning and inspection records of the water dispenser (once a month) 

4) Record of Returned Tools upon Collection (once per month) 

5) Temperature and humidity records (once a month) 

6) Human Rights Moral Risk Assessment Form (per year) 

10. Relevant laws and regulations 

List of Laws and Regulations 

2) Evaluation of Applicability of Main Legal Regulations 

3) Printed versions of major laws and regulations 

II. Administrative Department: 

Employee roster (in accordance with the provisions of the Regulations on the Implementation of the Labor Contract Law) 

2. Employee Onboarding Form 

3. Employee Contract 

4. Employee Attendance Records 

5. Leave Request Form 

6. Resignation Application Form 

7. Employee Handbook (Main Administrative and Personnel Policies) 

8. Administrative Reward and Punishment Records 

9. Records or photos of participation in community activities 

III. Finance Department: 

Daily piecework production report (if any) 

2. Salary List of On-the-job Employees 

3. Cash or transfer payment records (in Dongguan, payments are made before the 25th of each month for the previous month) 

4. Departure Employees' Salary List and Distribution Records 

IV. Production Department: 

Daily Production Report 

2. Production plan / Work order 

3. Maintenance Records of Machinery and Equipment 

4. On-site material identification (accurately distinguish, with emphasis on the date) 

5. On-site organization (security passage, 7S organization, computer and related materials organization) 

6. Wearing of Personal Protective Equipment 

7. Production site operation instructions (please pay attention to the date) 

8. Employee Interviews 

V. Warehouse Department: 

All the inbound and outbound warehouse records (including delivery orders, entry forms, requisition forms, exit forms, material cards, chemical entry and exit ledgers, etc.) 

2. On-site material identification (accurately distinguish, with emphasis on the date) 

3. On-site organization (7S organization, computer and related materials organization) 

4. Ensure that the fire escape routes in the warehouse remain unobstructed and that the safety exits are not blocked. 

5. All records of goods receipt and dispatch, as well as all other documents and materials, must not include dates when the warehouse is open on Saturdays, Sundays, or during national holidays.

6. Explosion-proof lights must be installed in the warehouse. 

7. The distance between the explosion-proof lights in the warehouse and the goods should be no less than 50 centimeters. 

8. Record of Distribution of Personal Protective Equipment 

9. Chemical substances must be stored in accordance with standards and accompanied by Material Safety Data Sheets. 

VI. Quality Assurance Department: 

Quality inspection records (including incoming material inspection records, first inspection records, process inspection records, and shipment inspection records) 

VII. Supply Management/SQE: 

Purchase Order 

2. List of Qualified Suppliers and Subcontractors 

3. Supplier Social Responsibility Survey Form 

4. Supplier Anti-Terrorism Commitment Letter 

Note: All records must be filled out strictly according to the attendance time. At least 3 months of records should be prepared. 

VIII. Notes:

Human Resources Department 

Employee Handbook 

2) Can the attendance record reflect the employees' working hours, commuting times, and overtime hours? 

3) Whether the time recorded on the attendance sheet complies with the labor law or the requirements of the client, and is based on the minimum standard. 

4) Are there any signs indicating absence from work, tardiness, early departure, or work stoppage due to material shortages? 

5) Does the attendance record show any employees who were present partway through the workday or who resigned partway through? 

6) Is the attendance record consistent with the personnel information and salary records? 

7) Seven consecutive days of attendance records 

8) The same employee cannot have consistently identical clock-in times. 

9) The attendance sheet must include the employee's identification number. 

10) Is there an employee signature on the pay slip? 

11) Is the minimum wage indicated on the salary sheet? And what is the specific amount? 

12) Is the salary sheet divided into hourly pay and monthly salary? 

13) Will there be any subsidy provided for the downtime caused by material shortages? 

14) Is there any provision for receiving a subsidy on a certain day next week when a national holiday falls on a Saturday or Sunday? 

15) Is there a provision for ten days of paid leave (including public holidays)? 

16) Is there any wage subsidy provided for marriage leave, bereavement leave, the period when some employees are legally participating in activities, and the welfare leave stipulated by the state? 

17) Does each employee keep their own payroll statement? 

18) Are social insurance and deduction items reflected on the salary sheet? 

19) Do the employees know the method for calculating their wages? 

20) The payroll should include the employee's identification number. 

21) Attendance Record 

22) Leave Application Form 

23) Resignation letter/record 

24) Warning Letter 

25) Company personnel files (including entry date and copy of ID card) 

2. Administrative Department 

Canteen: 

1) The kitchen must be kept clean and hygienic (with regular disinfection); 

2) To purchase fire extinguishers and first aid kits 

3) Staff members must have health certificates. 

4) When serving food, staff must wear complete sets of protective gear: hats, masks, protective suits, scarves, gloves, and water boots. 

5) Raw and cooked foods should be stored separately, and cooked food must be covered. 

6) The trash bin in the kitchen must have a lid. 

7) Chemicals must not be stored in the kitchen or the dining area. 

8) Ensure that the kitchen has adequate ventilation and that the floor has anti-slip markings. 

9) The cafeteria requires a business license and a health permit. 

Toilet: 

1) Is the toilet cleaned every day? Are there daily records of sanitation and cleaning? 

2) Are the toilet facilities designed to protect personal privacy? (Each urinal should be separated and independent.) 

3) Are there basic hygiene supplies in the toilet? 

4) Is there clean water available for flushing in the toilet? 

5) Is there no unpleasant smell in the toilet? 

6) Is there no disorderly stacking of items in the toilet? 

7) Are there clear signs indicating the gender of the toilets? 

Dormitory: 

1) Dormitory Rules and Regulations 

2) Accommodation allocation for dormitory staff 

3) Keep the inside and outside of the dormitory clean and tidy 

4) No gas cylinders, kitchen knives, rice cookers, or other appliances are allowed in the dormitory, and cooking is not permitted inside the dormitory. 

5) Do not randomly connect or pull wires. 

6) Maintain the integrity of fire-fighting equipment in the dormitory area 

7) Ensure that the first-aid kit in the dormitory area is adequately stocked with medicines. 

Health and Safety / Anti-Terrorism Measures: 

List of Volunteer Firefighters 

2) Organization structure of the volunteer fire brigade 

3) Duties of the Volunteer Fire Brigade 

4) Duties of Volunteer Firefighters 

5) Fire hydrant and fire extinguisher inspection records; Fire safety data records 

6) Fire drill data records 

7) Emergency Evacuation Drill Materials 

8) The escape routes must be clearly defined and remain unobstructed. 

9) Safety and Health Committee Materials 

10) Security records of outsiders entering and leaving the factory 

11) Nighttime security fire patrol records 

12) List of Finished Products for Inventory and Handling In and Out 

13) Inspection report for pressure vessels and safety valves (indicating that they are in qualified condition) 

14) Enterprise Safety Production Responsibility System 

15) Safety Production Level 3 Training Materials 

16) Safety Operating Procedures for Each Type of Work 

17) Security records of outsiders entering and leaving the factory 

18) Nighttime Security Fire Patrol Record 

19) The location for final packaging can be included in the list. 

20) List of Finished Products for Inventory and Handling In and Out 

21) Records of safety inspections for incoming letters, packages, personnel and vehicles 

22) Alarm systems and monitoring systems for preventing illegal intrusions 

23) Check if the fire hydrants are in good condition 

TESTCOO

Appendix 2: Other Requirements for McDonald's Factory Inspection 

The supplier code of conduct formulated by McDonald's for factory inspections not only includes requirements regarding wages, working hours, and documentations, but also stipulates the standards for businesses in terms of recruitment and employment. The specific requirements are as follows: 

1. No forced labor is allowed. 

2. Voluntary Work 

3. No restrictions on activities 

4. No confiscation of documents 

5. The punishment system is appropriate. 

6. There is no debt relationship between the employees and the factory. 

7. Overtime work must be voluntary. 

8. Security guards only protect the employees. 

9. No employment of child labor is allowed. 

10. Employees must be of legal working age. 

11. The factory must have a procedure for verifying the employees' identification documents. 

12. Rights and Protection of Minors Workers 

13. Conduct health checks every year and keep records of the information of underage workers. 

14. A safe working environment without any risks 

15. Working hours and job type records 

16. Women's Rights and Interests 

17. Labor Contract 

18. Non-discrimination (including all employee procedures: recruitment, dismissal, promotion, punishment, etc.; prohibition of physical, verbal and sexual harassment)