Guidelines On The Audit Process for Food Sites …

1 Guidelines on the Audit Process for food Sites supplying the UK* Author: Mary Salmon Applicable to: Product: All food Country: UK Date Issued: 28th Nov 2007 Date Revised: 22nd April 2008 Revision Due: 28th Nov 2008 Legal and Technical Document Matrix No: 348 Tesco Stores Ltd. All Rights Reserved. This document is supplied by Tesco for use of the immediate iit 1. Background All Sites must produce safe and legal products and meet the Tesco food Manufacturing Standard (TFMS). 2. Objective To define for suppliers/ Sites how the Audit Process will work for food Sites supplying the UK. *These Guidelines may be adopted by other Tesco International Businesses ROI 3.

2 New Suppliers All new primary Sites and secondary Sites (determined by Tesco) will be audited against the TFMS. Approval to supply will be given based on meeting the TFMS and having the capability to produce safe and legal products for Tesco. The Process flow for supplying Tesco is in appendix 1. 4. Existing Suppliers All primary Sites (see appendix 2) will be audited at a minimum frequency of every 2 years (determined by Tesco). The TFMS Audit will generally take between 1 and 2 days dependant on the size of site , number of employees and complexity of products produced. The TFMS Audit will be unannounced unless impractical due to circumstances or site location.

3 Audits may start at any time of any day and be targeted to specific product/seasonal issues. Additional types of audits may be completed: A Tesco Product (Specification) Audit A detailed Audit against the active specification held on the Technical Library. Guidelines on the Audit Process for food Sites supplying the UK April 2008 Version 2 1 of 9 Guidelines on the Audit Process for food Sites supplying the UK April 2008 Version 2 2 of 9 A Tesco Hygiene Audit A specialist Audit that can be requested by Tesco Technical Managers to help resolve specific hygiene or microbiological concerns. 5. Who Will Conduct The Audits New supplier approval Audit The Audit will be completed by an approved auditor from the Tesco Technical Category Team or by an approved nominated expert.

4 Ongoing supplier Audit The Audit will be completed by an approved Tesco auditor (from the Product Integrity Unit) or a Tesco nominated and trained contractor (SAI Global or FSSI). Approved contractors and Product Integrity Unit (PIU) auditors will carry Tesco photographic Identification cards. 6. Audit Notification New supplier approval Audit A member of the Tesco Technical Category Team will organise the Audit direct with the site /supplier. This Audit will typically take 2 days. Ongoing supplier Audit All Sites will be audited on an ongoing scheduled basis and Sites should anticipate that this will be unannounced. Where impractical (determined by Tesco), Sites will be notified in advance by the PIU or Tesco approved contractor, informing them of the pending Audit .

5 Sites will no longer receive notification of an impending PIU Audit . 7. Audit Preparation Prior to the Audit , the auditor requires access to the following information: Map of site location and where possible site plan HACCP Plan (including CCP summary and Process flow) Any current third party certification and report (see Appendix 3) Copies of previous Tesco audits and/or visit reports Active specifications for all active products must be available on the Tesco Technical Library or a list of proposed products (for approval assessment). Factory operating/shift times (including hygiene window) Pre-arranged events* *The site may list dates which may be inconvenient as other key events have already been arranged BRC Audit , Ethical Audit , Natures Choice Audit , a factory closure due to extensive maintenance.

6 Any date listed must detail the planned event. These dates must be kept to an absolute minimum and be inline with the examples given. Events other than those listed, may not be honoured. All of this information must be up to date and on the Tesco Technical Library within the site record (as attachments). Failure to make this information available or keep the site contacts up to date, will result in at least one non-conformance being raised during the Audit . Guidelines on the Audit Process for food Sites supplying the UK April 2008 Version 2 3 of 9 If a site is being audited as a potential new supplier and is not yet on the Technical Library, the information must be posted / emailed directly to the Tesco Technical Category Team auditor.

7 8. Structure of a Tesco Audit Generally there will be five main sections to the TFMS Audit , although additional sections may be added depending on the Category requirements. Opening Meeting The objectives and structure of the day will be agreed. site Audit - A full and detailed inspection of the site including all storage, production, laboratory and employee facilities will be completed. All processes and Process controls will be observed where possible and the compliance to procedures assessed. Traceability Assessment The site must collate all of the records for one or more products purchased from a Tesco store or chosen production by the Auditor.

8 The records will be reviewed to ensure that full traceability can be demonstrated and that the product has been produced safely and in accordance with the Tesco Specification (see appendix 4). Document Audit General policies and procedures may be reviewed which relate to production / site activities (see appendix 5). Closing Meeting All non-conformances raised during the Audit will be discussed. The site status (provisional) will be given based on the evidence gathered (see section 10). Digital cameras may be used to photograph evidence, on request these pictures can be viewed prior to the auditor leaving the site . 9. Definitions Any non-conformances found during the Audit will be classed as: Critical: A failure to meet a food safety or legal standard, failure puts the product and or Tesco brand integrity at imminent risk.

9 Major: A deficiency which requires prompt attention, to prevent a potential food safety or legal issue from arising or a major failure in the Tesco standards. Minor: A deficiency which requires attention to improve Good Manufacturing Practice standards, Due Diligence documentation or to achieve compliance with Tesco standards. The auditor may also make recommendations where it is considered that improvements can be made to further enhance Good Manufacturing Practice or documentation. Guidelines on the Audit Process for food Sites supplying the UK April 2008 Version 2 4 of 9 10. Audit Classifications for TFMS Audit The Audit classifications are dependant on the number and type of non-conformances identified.

10 Blue (Satisfactory) 0-4 minor non-conformances only Green (Satisfactory) 5 to 14 minor non-conformances only Amber (Improvement Needed) No critical non-conformances 1-3 major non-conformances 15 to 24 minor non conformances or a combination of 24 (or less) in total 3 majors + 21 minors. Red (Not Satisfactory) 1 or more critical non-conformances 4 or more major non-conformances 25 or more minor non-conformances or a combination of 25 or more in total 3 majors + 22 minors. Red Audits When it is apparent that an Audit outcome will be Red the auditor will collate information before the Audit is closed and complete a risk assessment in relation to Tesco production.