Gap Inc.

Quality Assurance Manual

Apparel Categories
Mar 2019

Page 1 of 18
Gap International Sourcing QA Manual
Mar 2019
TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................................................................................................. 2
1 INTRODUCTION AND SCOPE ........................................................................................................................................................................................... 3
1.1 INTRODUCTION ....................................................................................................................................................................................................... 3
1.2 PURPOSE ................................................................................................................................................................................................................. 3
1.3 POLICY ON QUALITY................................................................................................................................................................................................. 3
1.4 SCOPE ..................................................................................................................................................................................................................... 3
2 CONTACTS ..................................................................................................................................................................................................................... 4
2.1 GIS OFFICES ............................................................................................................................................................................................................. 4
3 LINE REVIEW MEETINGS ................................................................................................................................................................................................. 5
4 LIGHT SOURCE REQUIREMENTS PER BRAND ................................................................................................................................................................... 6
5 PRE PRODUCTION MEETING ........................................................................................................................................................................................... 6
6 PILOT RUN ..................................................................................................................................................................................................................... 7
7 IN PROCESS CONTROL .................................................................................................................................................................................................... 7
7.1 IN-PROCESS PURPOSE .............................................................................................................................................................................................. 7
7.2 IN-PROCESS INSPECTION FORMS.............................................................................................................................................................................. 7
7.3 CUTTING/KNITTING INSPECTION PROCEDURES......................................................................................................................................................... 7
7.4 TRIM & SEWING INSPECTION PROCEDURES.............................................................................................................................................................. 8
7.5 PROCESS VALIDATION .............................................................................................................................................................................................. 8
8 FINAL SHIPMENT AUDITS ............................................................................................................................................................................................... 9
8.1 FINAL INSPECTION FORMS ....................................................................................................................................................................................... 9
8.2 ACCEPTABLE QUALITY LEVEL (AQL)......................................................................................................................................................................... 10
8.3 NEEDLE DETECTION ............................................................................................................................................................................................... 11
8.4 CRITICAL DEFECTS.................................................................................................................................................................................................. 11
8.5 PACK AUDIT REQUIREMENTS ................................................................................................................................................................................. 11
8.6 MOISTURE CONTENT TEST ..................................................................................................................................................................................... 12
8.7 OCR AUDIT ............................................................................................................................................................................................................ 12
8.8 MEASUREMENT AUDIT SAMPLING PLANS .............................................................................................................................................................. 13
8.9 MEASUREMENT AUDIT PROCEDURES ..................................................................................................................................................................... 13
8.10 POINTS OF MEASURE ........................................................................................................................................................................................ 13
8.11 MEASURING THE WEIGHT OF SWEATERS ........................................................................................................................................................... 13
8.12 VISUAL AUDIT SAMPLING PLANS ....................................................................................................................................................................... 14
8.13 VISUAL AUDIT PROCEDURES .............................................................................................................................................................................. 15
8.14 MAJOR VISUAL DEFECTS .................................................................................................................................................................................... 16
8.15 MINOR VISUAL DEFECTS .................................................................................................................................................................................... 16
9 VENDOR MANAGED INVENTORY (VMI) AUDIT PROCEDURES ......................................................................................................................................... 16
10 IN FACTORY TEST SAMPLE PICK UP ......................................................................................................................................................................... 16
11 FULL EMPOWERMENT ........................................................................................................................................................................................... 17
12 THIRD PARTY INSPECTION ...................................................................................................................................................................................... 17
13 IN MARKET ISSUE FOLLOW UP ............................................................................................................................................................................... 17
14 SECONDS AND OVERRUNS ..................................................................................................................................................................................... 17
15 COMMUNICATION AND RECORDS.......................................................................................................................................................................... 17
16 PRODUCT SAFETY POLICY....................................................................................................................................................................................... 18
16.1 BACKGROUND................................................................................................................................................................................................... 18
16.2 SCOPE ............................................................................................................................................................................................................... 18
16.3 NEEDLES & FOREIGN METAL CONTAMINATION.................................................................................................................................................. 18
16.4 WAIVERS & ESCALATIONS ................................................................................................................................................................................. 18

Page 2 of 18
Gap International Sourcing QA Manual
Mar 2019
1 INTRODUCTION AND SCOPE

1.1 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:
1. Allocating appropriate resources to ensure quality systems are working and effective.
2. Encouraging active participation of all workers in improvement efforts.
3. Ensuring that manufacturing processes are stable, capable, and under control at all times and are producing defect free products.
4. Ensuring that adequate in-process inspections and testing are in place to monitor quality.
5. Documenting systems, processes, procedures, etc. to maintain effective operations.
6. Creating open, honest and timely communication with Gap Inc.’s sourcing offices.

1.2 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
teams. However, the vendor may use it to train their QA teams or use it in any manner to supplement their QA processes.

1.3 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.

1.4 SCOPE

This manual deals with quality requirements of apparel products only. This manual is also a useful resource for Gap Inc.’s internal Process
Quality Assurance, Vendor Management and Technical teams. The term “Auditor” mentioned in this manual is applicable to GIS PQA, factory
Designated Auditor or 3rd Party Auditors.

This manual is the property of Gap Inc. While in your company’s possession, this 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 dealing with Gap Inc. or its vendors. The manual
needs to be returned to Gap Inc. immediately upon termination of your dealings with Gap Inc. or its vendors, or upon Gap Inc.’s request.

Page 3 of 18
Gap International Sourcing QA Manual
Mar 2019
2 CONTACTS

For any questions or clarification on this manual, please contact your regional PQA leaders at the GIS offices listed below.

2.1 GIS OFFICES

GIS Hong Kong

20-22/F, BEA Tower, Millennium City 5 / 418 Kwun Tong Road, Kwun Tong / Kowloon, Hong Kong
Tel: 852.2730.9883
Fax: 852.2730.5466

GIS India
Gap International Sourcing (India) Pvt. Ltd.
201, DLF South Court, 1st Floor
Saket, New –Delhi -110017
Tel: 91-11-41822222
Fax: 91-11-41630228

GIS Shanghai
Gap (Shanghai) Commercial Company Ltd.
1th Floor, Building #6
800 Changde Road
Jiangan District
Shanghai 200040, China
Tel: 86-21-22199688
Fax: 86-21-32553603

Page 4 of 18
Gap International Sourcing QA Manual
Mar 2019
3 LINE REVIEW MEETINGS

Objective: Risk management and filter potential issue on all quality related issues
Timing/Where: After line adoption/investment review/Quarterly Product Review, Seasonal (Spring/Summer/Fall/Holiday) base in GIS or
vendor location
Participant: GIS Product Development (PD), Vendor Key Representative (VKR) and Safety Line Review Focal (SLRF), GIS Fit CoE, Category PI

For details of line review meeting:

Please refer to: GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → GIS Line Review Guideline

Page 5 of 18
Gap International Sourcing QA Manual
Mar 2019
4 LIGHT SOURCE REQUIRE MENTS PER BRAND

Please refer to below document on detail requirements for light source requirement:
GAP Source Library → Color Information → Color Services SOP’s → Gap Inc Color SOP → Section 1.0 color equipment requirement s: SOP

5 PRE PRODUCTION MEETING

Please refer to below documents on detail procedures:

1. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Appendix I – Critical POM’s
2. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Appendix II – Defect Classification
3. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Appendix III – QAS report-DA-training-deck
4. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Apparel PPM Guideline
5. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Wet Processing PPM Guideline
6. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Gap Inc. Needle and Foreign Metal Contamination
Policy - PSR SOP 008
7. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Non Apparel QA Guideline
8. GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Jewelry Audit Guideline
9. GAP Source Library → Quality Assurance → QA Forms and Reports → Pre-Production Meeting Report. Meeting details should be
entered into the QAS system within 1-2 days

In order to have complete information to conduct the Pre Production meeting, you also need the below documents:
10. GAP Source Library → Product Guideline and Testing → How to Measure
11. GAP Source Library → General Information → Vendor Handbook → Packing

Vendors must reinforce 100% PPS availability at factory from PP meeting to final inspection. No approved samples (PPS), no PP meeting
and consequent inspections.

Page 6 of 18
Gap International Sourcing QA Manual
Mar 2019
6 PILOT RUN

The Pilot Run is for order quantity of more than 1000 pieces per style. Please refer the detail procedures at GAP Source Library → Quality
Assurance → QA Manual SOP Guideline → Pilot Run Guideline

The form can be accessed at GAP Source Library → Quality Assurance → QA Forms and Reports → Pilot In-Process Report and enter the
details into the QAS system using the QAS report format.

For order quantity less than 1000 pieces, the factory should conduct the In-Process Audit for the first bulk log accordingly to ensure bulk
quality.

7 IN PROCESS CONTROL

7.1 IN-PROCESS PURPOSE

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 sweater
production, the first In-Process inspection begins when knitting commences.

While inspecting semi-finished goods and batches during work-in-process, the Auditor must keep records and/or photos on the defects found
for discussion and communication with the manufacturer/GIS VD. The Auditor should ensure a correct standard is followed and in-house QC
is checking effectively, production supervisors are monitoring quality and delivery effectively to meet both quality and delivery targets.

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 to measure the percentage of defective, but to identify potential problems that arise during
these operations. The In-Process reports will be the basis for data collection and evaluation to help driving improvements in the operations.

7.2 IN-PROCESS INSPECTION FORMS

At the relevant In-Process Inspection stages, Auditors will use the following forms:
7.2.1 In-Process Inspection Worksheet is for Factory QA internal use only. Access at GAP Source Library → Quality Assurance → QA
Forms and Reports → In-Process Audit Worksheet.
7.2.2 In-Process Audit Report – for DA and GIS PQA. Access at: GAP Source Library → Quality Assurance → QA Forms and Reports →
Pilot/In-Process Report, and enter inspection results into the QAS system.

Please note these forms must be used as it is during the In-Process Inspection. If there are any questions or change requests regarding the
forms, contact the GIS PQA leader in your region.

7.3 CUTTING/KNITTING INSPECTION PROCEDURES

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

7.3.1 Verify and record fabric/yarn test reports.
7.3.2 After cutting, perform visual and measurement inspections (i.e. hard pattern vs. top/middle/bottom cut pieces) and record in
reports. For knitting, perform regular tension checking and 100% visual audit on knitting defects and patterns.
7.3.3 Discuss the problems found and recommend solutions to factory management.
7.3.4 If the factory can’t correct the problem in time to catch original delivery, the GIS VD should be contacted for corrective action.
7.3.5 If questions regarding specifications, fabric/material standards, color, etc. arise, the GIS VD should be contacted for alternative
options.

Page 7 of 18
Gap International Sourcing QA Manual
Mar 2019
7.4 TRIM & SEWING INSPECTION PROCEDURES

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

1. All fabrics/yarn, components, trims, and labels should be checked against production approved standards, and must reflect correct
country of origin, fibers and component contents.
2. Review and record all required Gap Inc. fabric/ component/product test reports.
3. Verify needle control and safety procedures are being followed.
4. Check to make sure that all components, trims, and labels are available to meet production schedules.
5. Perform random checks on sewing lines and finishing department.
6. Verify factory is inspecting at least five pieces of each operator’s semi-finished goods to check workmanship defects. Record the
findings on the In-Process Audit Worksheet as per section 7.2.1.
7. Look for “Recurring Defects” to avoid high defect or rejection rate. Check hand feel and color against approved standards. If standards
are not available, send relevant VM examples of fabric colors and range of shades.

7.5 PROCESS VALIDATION

For Full empowerment factories, GIS PQA or designated 3rd party auditor will conduct process validation for the overall Quality System and
FKR/DA’s performance regularly and issue CAP for VKR/FKR to follow up in order to improve factory’s QA process and ensure bulk quality
consistency.

This is an unannounced audit and FKR should always have all the MRPs and WIPs of current production available in order to facilitate the
audit on site. Auditor will take photos for all his/her findings and have a closing meeting with FKR listing all the observations and items for
corrections.

Please refer to GAP Source Library → Quality Assurance → Quality Manuals SOP Guidelines → Quality Technical Evaluation Scope for process
validation scope.

Page 8 of 18
Gap International Sourcing QA Manual
Mar 2019
8 FINAL SHIPMENT AUDITS

The purpose of a Final Shipment Audit is to determine the quality of the products by its visual appearance, measurement to specifications
and packing execution. The Final 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.

In order for the Auditors to proceed with the Final Inspection, relevant POs should be 100% packed.

No Passed Garment Test Report, No Final Inspection.

Auditor needs to check for a passed product test report and put the report number in final inspection report.
If the test report is failed, there should be an email from gap for override approval.
No passed product test report or no override email for failed test report, the final inspection can’t be performed. Auditor should select reject
in final report so the shipment cannot be released.

For Japan, Intimate or Kid and Baby products:

1. There must be a 100% metal scanning report.
2. If there are any MAH (metal attachment hardware) items, bulk production pull test report is required.
3. After inspection, all the audited samples including packaging materials must be passed through metal scanning again. Any one piece
of metal contamination will be counted as critical defect.

Auditors should follow the following sequence to do final inspection,

Check MRP Check metal scanning report for Japan, Check packing Check moisture content Check shading
intimate or Kids & Baby products (in high risk region) within one box

Check OCR Do measurement audit Do visual audit For Japan, intimate or Kids & Baby products, witness all the
audited samples including packaging materials to pass
through metal scanning again.

Share inspection
findings with factory

8.1 FINAL INSPECTION FORMS

At the relevant shipment inspection stage, forms can be accessed at:

a. GAP Source Library → Quality Assurance → QA Forms and Reports → Measurement Work Sheet
b. GAP Source Library → Quality Assurance → QA Forms and Reports → Shipment Inspection Report
c. GAP Source Library → Quality Assurance → QA Forms and Reports → Packing Audit worksheet
d. GAP Source Library → Quality Assurance → QA Forms and Reports → Seconds, Overruns and Thirds Disposal De-labeling Audit Form

Report b) can be replaced by the QAS report.

Please note, forms a, b, c and d must be used as it is during the Final Inspection. If there are any questions or change requests regarding the
forms, contact the GIS PQA leader of your region.

Page 9 of 18
Gap International Sourcing QA Manual
Mar 2019
8.2 ACCEPTABLE QUALITY LEVEL (AQL)

The 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 below 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 & OUTLET

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

TABLE 2: AQL STANDARDS FOR BANANA REPUBLIC & ATHLETA

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

Page 10 of 18
Gap International Sourcing QA Manual
Mar 2019
8.3 NEEDLE DETECTION

For all the kids/baby and intimate styles shipped to all countries and all products shipped to Japan, the whole shipment should go through
the needle detection and record in the needle detection log book. Inspectors should request for this record for review before the inspection.
If factory fail to submit this record, they should either scan the whole shipment or rectify the record if the shipment is scanned but the record
is not updated.

8.4 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).

VISUAL CRITICAL DEFECTS

To find Critical Defects pertaining to product safety, component content markings and country of origin, the method used is visual inspection.
Effective from April 1, 2019, untrimmed thread ends > 1/8” and broken/skipped ≥ 1 stitch are treated as critical defects. The re-inspection
will be conducted at Level 3 audit plan.

MEASUREMENT CRITICAL DEFECTS

1. To find Critical Defects pertaining to “snug fitting sleepwear”, the method used is the measurement audit.
2. Measurement critical defects should be referred to Technical Bulletin 200 (Drawstrings and ties in children, toddler and infant
wearing apparel and accessories)

PROCEDURE FOR MEASUREMENT AUDIT OF “SNUG FITTING SLEEPWEAR”

1. Determine if the product is “snug fitting sleepwear" by looking at the sketch on the front page of the Tech Pack . It will state if it is a
"snug fitting sleepwear" style subject to CPSC regulations. On the measurement page of the Tech Pack governed by CPSC regulations
will be in CAPITAL LETTERS. On the measurement page of the Tech Pack governed by CPSC the initials “CPSC” will be at the
beginning of each point of measure description.
2. Use the standard measurement sampling plan as stated in the measurement audit procedures section of this manual.
3. 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.
4. 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.
5. The AQL for appraising Critical Measurement Defects is 0.1 and shipping decision should be made only when the audit is in
compliance.

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 re-inspected. All critical measurements must be removed before the lot can be submitted for a second audit.

8.5 PACK AUDIT REQUIREMENTS

The final inspection 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.

PACK AUDIT DEFECTS INCLUDE THE FOLLOWING

1. Incorrect quantity
2. Carton labeling errors
3. Incorrect Pre-Pack
a. Assortments
Page 11 of 18
Gap International Sourcing QA Manual
Mar 2019
 b. Amounts
c. Pre-Pack Stickers
4. Carton not as specified (size and construction)
5. Crushed or damaged cartons
6. Use of wire or metal strapping to strap cartons

PACK AUDIT PROCEDURE

1. Upon failure of an assessment, the auditor will continue the random sampling, using the Pack Audit Sample Plan (see Table 7).
2. In case the visual and measurement audit samples quantity cannot meet with the above packed audit carton sample size quantity,
auditor should pull more cartons. For multiple packing and shipping countries combined audit, please make sure minimum there is
one carton check per packing method and shipping country.
3. If the 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. The pack audit result should be recorded in GAP Source
Library → Quality Assurance → Quality Assurance Manual → QA Forms and Reports → Packing audit worksheet.
4. Upon completion of this assessment and/or audit, complete the appropriate section in the Shipment Inspection Report.
5. If the problems found create shipping delays, notify the GIS VD for decision.
6. For each Full Carton Purchase Order, Vendor should follow up as per pack factor in PO and ensure all the cartons are full packed
without space inside. In case there is adjustment of pack factor upon bulk production, factory should notify GIS VD team for
approval and revision of the PO.
7. 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.

TABLE 3: AQL AND SAMPLING PLAN FOR PACK AUDIT FOR AUDITOR:
ANSI/ASQC Z1.4 1993 Single Sampling Plan Level II - 0.65 AQL
Pack Audit Sample Plan - AQL 0.65
# of cartons Sample Size Pass Fail
5-15 3 0 1
16-50 8 0 1
51-90 13 0 1
91-150 20 0 1
151-280 32 0 1
281-500 50 1 2
501-1,200 80 1 2
1,200- UP 125 2 3

8.6 MOISTURE CONTENT TES T

Gap requires that all factories must meet Mold Prevention Guidelines and the shipment from high risk regions in tropical climate and/or wet season must
pass moisture content test.

The following related SOPs can be accessed at GAP Source Library → Quality Assurance →Reference Materials
➢ Mold Prevention Guidlines
➢ How to use Aqua-Boy Guideline

8.7 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.

Page 12 of 18
Gap International Sourcing QA Manual
Mar 2019
8.8 MEASUREMENT AUDIT SAMPLING PLANS

Table 4: Sampling Plan for Measurement and Pass/Fail Chart

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

Measurements Ticket Check (OCR)

Shipment size lot
Samples size Critical AQL 0.1 AQL 2.5 AQL 4.0 AQL 6.5 AQL 0.25

Pass Fail Pass Fail Pass Fail Pass Fail Pass Fail
0-150 8 0 1 0 1 1 2 1 2 0 1
151-280 13 0 1 1 2 1 2 2 3 0 1
281-500 20 0 1 1 2 2 3 3 4 0 1
501 - 1,200 32 0 1 2 3 3 4 5 6 0 1
1,201 -3,200 50 0 1 3 4 5 6 7 8 0 1
3,201 - 10,000 80 0 1 5 6 7 8 10 11 0 1
10,001 - 35,000 125 0 1 7 8 10 11 14 15 1 2
35,001 - UP 200 0 1 10 11 14 15 21 22 1 2

8.9 MEASUREMENT AUDIT PROCEDURES

Measurements should be taken on products after washing, after pressing and sometimes before packing.
Fiberglass tapes must be used to conduct all measurements, except in some cases for sweaters, where metal rulers are preferred. Vinyl
and plastic tape measures are prohibited.
1. Fiberglass tape measures should be calibrated using a metal ruler.
2. Vendor’s in-house QA supervisor must calibrate the QA/DA fiberglass tape measures monthly.
3. All calibrations should be recorded and dated for reference as requested by Gap Inc. PQA
4. Select samples at random covering all sizes all colors in the PO.
5. Measure products at critical measurement points – see separate document on Gap Source Library to determine critical points of
measure by category and product type (Please refer to the Critical POM for Final Audit on GAP Source Library → Quality Assurance
→ All the QA Forms & Reports → Critical POM’s).
6. Highlight all measurement defects but make sure that a product with more than one measurement defect is counted as one defect
only
7. For sweater orders, weigh each sample after measuring and make records.

8.10 POINTS OF MEASURE

The Auditor needs to measure the POM listed at “Critical Points of Measure for Final audits” for the measurement AQL sampling sizes. For
other POMs, the auditor should base on visual judgment to determine if it is acceptable or not.

Path on GSL → Quality Assurance → Quality Assurance Manuals, SOPs and Guidelines → Critical POMs

8.11 MEASURING THE WEIGHT OF SWEATERS

Gap, GAP Outlet, Banana Republic Factory Store, Old Navy and Athleta/Hillcity Sweaters:
Three pieces of the median size per color (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.

Page 13 of 18
Gap International Sourcing QA Manual
Mar 2019
Banana Republic Sweaters:
Sweaters of every size per color 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:
1. Assuming that the required size ratio is 1:2:2:1 (XS/S/M/L).
2. Randomly select four sweaters of every size; weight them individually and record the results for the interim audit report.
3. Calculate the average weight of each sweater size by adding the four (4) readings together and dividing by four (4).
4. Based on the size ratio 1:2:2:1, the average overall weight of a sweater is calculated in the following manner:
a. (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.

Sweater Weight Audit Acceptance Criteria

1. Follow the tolerance in the Tech Pack Measurement Sheet. If it is not available, in general, +/- 5% weight tolerance is acceptable.
2. If the overall sweater weight per color is less from tolerance from approved sweater weight, the respective color shipment is
rejected.
3. If the overall sweater weight per color is over the tolerance from the approved sweater weight and the hand feel is not as the
approved standard, the respective color shipment is failed.
4. If the overall sweater weight per color is over from tolerance from the approved sweater weight while the hand feel and
measurement is passed, it is passed.

8.12 VISUAL AUDIT SAMPLING PLANS

The 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. 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.

The Auditor should ensure that none of the defects found are from a particular purchase order, color or size where a high defect percentage
are found when compared to the relative AQL level used. Additional sampling quantity is needed to determine if the particular purchase
order, color or size failed.

TABLE 5: VISUAL AUDIT SAMPLING PLAN FOR GAP, OLD NAVY, BRFS, & GAP OUTLET
ANSI/ASQC Z1.4 1993 Single Sampling Plan Level (I)
Shipment Size Visuals Ticket Check (OCR)
Lot Sample Size Critical AQL 0.1 AQL AQL AQL
Pass/Fail 2.5 4.0 0.25
Pass/Fail Pass/Fail Pass/Fail
0-150 8 0/1 0/1 1/2 0/1
151-280 13 0/1 1/2 1/2 0/1
281-500 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

Page 14 of 18
Gap International Sourcing QA Manual
Mar 2019
TABLE 6: VISUAL AUDIT SAMPLING PLAN FOR BANANA REPUBLIC & ATHLETA/HILL CITY.
ANSI/ASQC Z1.4 1993 Single Sampling Plan Level (II)
Visuals Ticket Check (OCR)
Shipment size lot
Sample Size Critical AQL 0.1 AQL 1.5 AQL 2.5 AQL 0.25
Pass Fail Pass Fail Pass Fail Pass Fail
0-150
20 0 1 0 1 1 2 0 1
151-280
32 0 1 1 2 2 3 0 1
281-500
50 0 1 2 3 3 4 0 1
501 - 1,200 80 0 1 3 4 5 6 0 1

1,201 -3,200 125 0 1 5 6 7 8 1 2

3,201 - UP 200 0 1 7 8 10 11 1 2

TABLE 7: VISUAL AUDIT SAMPLING PLAN

ANSI/ASQC Z1.4 1993 Single Sampling Plan Level (III)
Visual Ticket Check (OCR)
Shipment Size Lot
Sample Size Critical AQL 0.1 AQL 1.5 AQL 2.5 AQL 0.25
Pass Fail Pass Fail Pass Fail Pass Fail
0-150 20 0 1 0 1 0 1 0 1
151-280 32 0 1 0 1 1 2 0 1
281-500 50 0 1 1 2 2 3 0 1
501-1,200 80 0 1 2 3 3 4 0 1
1,201-3,200 125 0 1 3 4 5 6 1 2
3,201- UP 200 0 1 5 6 8 9 1 2

Remark: If the sample size can’t cover all sizes in each color, please use the sample size in bigger shipment size lot.
e.g.
Order quantity: 300 pcs
Brand: Gap
AQL for visual & measurement: Level I, 2.5
Sample size: 20 pcs
P/F: 1 / 2
# of colors: 3
# of sizes per color: 9
If we only pull 20 pcs, we can’t cover all sizes in each color (3*9=27). Thus we need to upgrade the sample size to 32 pcs (P/F: 2 / 3).

8.13 VISUAL AUDIT PROCEDU RES

1. From left to right (sleeve to sleeve)

2. From top to bottom (collar to hem)
3. From outside to inside (To check the inside of the garment, open the buttons or zippers, examine 4 inches from armhole/
crotch/hem and all the labels. It’s not necessary to turn garment all inside out unless there is special requirement.)
4. Key attachment inspections (embroidery, print, etc.)
5. Functional trim inspections (snaps, zippers, buttons, hook and bar, etc.)
6. Study the overall balance

Page 15 of 18
Gap International Sourcing QA Manual
Mar 2019
8.14 MAJOR 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. Please review at GAP Source Library/ Quality Assurance / Quality Assurance Manual / Appendix
2: Classification of Visual Defects.

SHADE VARIATION
If shade variations occur within a shipment, the GIS vendor management team 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 GIS/VM team for a decision. If the vendor management team requests that the shades be separated then all cartons should
be checked and accordingly segregated for different shades. In general, shading within one garment or shading garments in one carton box is
rejected unless there is exceptional approval from GAP.

8.15 MINOR VISUAL DEFECTS

Effective from Jan 1, 2016, Gap Inc. removes minor visual defects from AQL, which means all minor defects are counted as major.

9 VENDOR MANAGED INVENTORY (VMI) AUDIT PROCEDURES

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 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.

Auditor should ensure they have the updated MRP to perform all the PPM, Pilot, In-line and Final Shipment inspections. All the approved
samples/trim cards/test reports are valid for maximum 6 months only and needs to be updated accordingly. PPM for VMI orders should be
performed at least once per six months to ensure the factory has the latest information.

Auditors should perform Final Shipment inspection once the shipment is ready. Final Audit for the VMI shipment is valid for two weeks only.
If the shipment is stored for a long period of time in the warehouse before delivery, the Auditor should review the cartons and pull 1-2
cartons from the longest storage period to ensure the product inside is still in good condition in both visual and measurement before
delivery.
All audits must pass current measurement, visual, OCR, and packing standards as per our established sampling tables before sh ipping
to Gap Inc. distribution centers (DC’s).

10 IN FACTORY TEST SAMPLE PICK UP

In Factory Correlation test is to verify factory’s testing result by random bulk production testing. It occurs in addition to standard Gap Inc. quality testing.
(Note: this process is different from PSR/PQA Correlation Audit)

Regarding the process of picking up test samples by PQA or 3rd Party Auditors at factory, please follow the file at GAP Source Library → Quality Assurance →
Quality Manuals, SOPs and Guidelines→ Process of In Factory Test Sample Pick Up

*Remark: For PSR/PQA Correlation Audit, Please refer to PSR SOP 003: PSR PQA Factory Correlation Audit Process for sample pick up guidelines. You can find
the document in GSL/Product Guidelines and Testing/SOP's - Product Safety and Regulations/ PSR SOP 003: PSR PQA Factory Correlation Audit Process.

Page 16 of 18
Gap International Sourcing QA Manual
Mar 2019
11 FULL EMPOWERMENT

QA Full Empowerment Program is a program that GAP Inc. empowers vendors to take up the ownership of Quality Processes from PPM to Final Inspection
and product safety control.

The following related SOPs can be accessed at GAP Source Library → Quality Assurance → Quality Manuals, SOPs and Guidelines,
➢ QA Full Empowerment Guideline
➢ Post Empowerment Guideline

12 THIRD PARTY INSPECTION

Gap involve 3rd party inspection service to conduct regular product correlation audits. Shipment audits under contingency monitoring are also included.
The 3rd party auditors are designated and specially trained by Gap. Their inspection result is reviewed and approved by Gap.

The SOP can be found at GAP Source Library → Quality Assurance → Quality Manuals, SOPs and Guidelines→ 3rd Party Inspection Process

13 IN MARKET ISSUE FOLLOW UP

All shipment will be under DC and store random audit, please refer to GAP Source Library → Quality Assurance → All QA Manuals, SOPs and
Guidelines → In Market DC Escalated Audit GIS Follow Up Guideline.

14 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 removal, an audit must be scheduled with the
Auditor to verify that the removal has been executed correctly. Please read the details at the GAP Source Library → Quality Assurance → All
QA Manuals, SOPs and Guidelines → Seconds and Overrun Policy.

At the relevant inspection stage, Auditor will use the following forms:
1. Seconds, Overruns, Thirds, Disposal Request Delabeling Audit form at Gap Source Library → Quality Assurance → QA Forms and
Reports → Seconds, Overruns and Thirds Disposal De-labeling Audit Form.

15 COMMUNICATION AND RECORDS

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

While Auditors 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, auditors must maintain a high level of vigilance, and in addition to informing the merchant, these issues
must be highlighted to the Factory Key Representative/Product Safety Officer, PQA, GIS VD and GIS Product Integrity team copied on issues.
The communication process to GIS Product Integrity 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
properly.

All the Inspection reports should be entered into the QAS system within 1-2 days after the audit.

Page 17 of 18
Gap International Sourcing QA Manual
Mar 2019
16 PRODUCT SAFETY POLICY

16.1 BACKGROUND

There is a Product Safety Policy applicable to all products for Gap Inc. Please refer to GAP Source Library→ Product Guideline and Testing →
Softlines Manual.
Auditor should follow “Product Safety Policy” at GAP Source Library → Quality Assurance → QA Manuals, SOP, Guidelines, and submit
monthly report to GIS PI contact. This form can be accessed at GAP Source Library → Quality Assurance → QA Forms and Reports → Product
Safety Compliance Checklist.

16.2 SCOPE

This outlines all the requirement and control needed for all vendors making all Kids & Baby, intimate products and all products shipping to
Japan.

16.3 NEEDLES & FOREIGN ME TAL CONTAMINATION

Gap Inc. will not accept any product containing foreign metal contaminants such as needles, needle fragments, or other sharp objects (metal
staples, pins, prongs, footwear nails, screws, broken glass, wooden spikes, 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.

Please review the details at GAP Source Library → Quality Assurance → QA Manuals, SOP, Guidelines → Gap Inc. Needle and Foreign Metal
Contamination Policy - PSR SOP 008 for :
1. Charge Back Policy
2. Needle control procedures
3. Other sharp object contaminations
4. Needle Dectection Procedures and list of approved Needle Detector Brands
5. Metal-Free Dection and Packign Zone Reqirement
6. Needle Control logs procedure

16.4 WAIVERS & ESCALATIONS

Pre-Production & Production Post-Shipment In Market

Issues Issues Issues

COE-PI PSR manager & COE-PI PSR manager Headquarter PSR

Category Technical Team

Headquarter PSR COE-PI PSR manager

• Only Headquarter PSR can authorize waivers to Gap Inc. product safety
Page 18 of 18
Gap Internationaland regulatory
Sourcing QA Manual policies.
Mar 2019