Due diligence Solarif- Audit report Kiwa - 150502184-a (Phonosolar) rev.00 (1)

Report of Factory Audit Report No. 150502184/a

MOD RGS 049 – DD PV Rev. 02 – Aprile 2015 Pag. 1 di 47

Due diligence – Audit Report

Phono Solar

Third party

Kiwa Cermet Italia S.p.A.

Via Cadriano, 23 - 40057 Granarolo dell’Emilia (BO), Italy

MOD RGS 049 - DD-PV Rev. 02 – Aprile 2015 Pag. 2 di 47

CONTENTES

A. INTRODUCTION ........................................................................................................................................... 4

Disclaimer ...................................................................................................................................................... 4

Purpose of this document .............................................................................................................................. 4

Score explantion ............................................................................................................................................ 5

B. SUMMARY REPORT .................................................................................................................................... 5

C GENERAL INFORMATION ABOUT THE COMPANY ................................................................................... 6

Company profile ............................................................................................................................................. 6

Product information and factory certification ............................................................................................... 11

List of solar modules sold ........................................................................................................................ 11

Product and System Certification ............................................................................................................ 11

System ISO/OHSAS Implementation ...................................................................................................... 13

D. MODULE FACTORY INSPECTION ........................................................................................................... 15

PRODUCTION PROCESS .............................................................................................................................. 15

Production process flow chart.................................................................................................................. 15

Production process .................................................................................................................................. 17

Quality Assurance ........................................................................................................................................ 19

Calibration/check of measuring equipment ............................................................................................. 19

Calibration/check of measuring equipment ............................................................................................. 19

Control of production equipment ............................................................................................................. 19

Quality control .............................................................................................................................................. 22

Quality Management Department ............................................................................................................ 22

Organisation Chart ................................................................................................................................... 23

Incoming quality control / BOM (Bill Of Materials) ................................................................................... 25

Supplier Evaluation Process Flowchart ................................................................................................... 27


In-process quality control ......................................................................................................................... 29

IPQC Flowchart ....................................................................................................................................... 30

Customer Engineering Services (CES) ................................................................................................... 33

After Sales Flow Chart ............................................................................................................................. 33

Testing of randomly selected PV modules .............................................................................................. 39

Test nr.2 - Re-flashing of randomly selected PV modules ...................................................................... 40

Conclusions of factory inspection ................................................................................................................ 41

E. COMMENTS AND RECOMMENDATIONS ................................................................................................ 42

key points inspection items .......................................................................................................................... 42

summary Comments (Non-conformity - observations) ............................................................................... 44

F. FACTORY AUDIT CONCLUSIONS ............................................................................................................ 45

OVERVIEW OF MANUFACTURER ................................................................................................................ 45

General results ............................................................................................................................................ 46

Result ........................................................................................................................................................... 47


A. INTRODUCTION

DISCLAIMER

This report has been prepared in accordance with Kiwa quality control audit procedures, based on its

extensive knowledge and experience in Quality Control and Quality Management in PV industry.

PURPOSE OF THIS DOCUMENT

The purpose is to carry out the verification of the factory in order to insure the products, such as photovoltaic

modules, under insurance policy.

The report contains observations & comments made by qualified staff primarily during the inspection visit of

the factory.

The report is an analysis of current quality control and quality management practices and if needed contains

recommendations for future improvements.

The addresses of the audited factories are:

Name of the audited companies Addresses of the audited companies

Phono Solar Technology Co., Ltd. No. 1 Xinghuo Road, Nanjing Hi-Tech Zone, Pukou

District, Nanjing, Jiangsu, China

The participants of the factory audit are

Name and Title Name of Company

Sammi Lu – Sales Manager Phono Solar Technology Co., Ltd.

Hong Yang – QA Manager Phono Solar Technology Co., Ltd.

Wang Leilei – QA Dept. Phono Solar Technology Co., Ltd. Simon A. Clipsham - Auditor Kiwa


SCORE EXPLANTION

Score evaluation Description

Maximum score The maximum score of the section, reached in case every item’s evaluation achieves the maximum score.

Kiwa score The score given by Kiwa on the basis of the assessed items.

Score rate of item The percent value of the ratio between Kiwa score and maximum score.

Evaluation

There are three classifications for each section and they are distinguished as follow:

Documents and implementation complete (score rate 100%);

Documents or implementation not complete (score rate 1%~99%);

No documents and implementation (score rate 0%).

Key items

There are 20 key items of the factory audit. The 20 items cover the production process, product and quality management. If the key items are well implemented, it is possible to assure an high quality product. Every item is related to 5% evaluation score. If an item do not fully match inspection requirements the evaluation score will be decreased by 5% of the total evaluation score. If the items evaluation with more non-conformity lead to total evaluation score is less than 7.0, re-audit/re-visit will be required.

B. SUMMARY REPORT

Kiwa staff, Simon A. Clipsham visited Phono Solar at its module manufacturing facilities in Nanjing, on the

08th and 09

th June 2015 investigating on behalf of SolarIF to check whether the manufacturing process

conforms to the required standards.

The factory inspection considers the following macro items:

Collection of general information about the factory;

Audit factory process & quality inspection;

In-line product inspection;

ISO 9001/14001, OHSAS 18001 documentation inspection;

EHS (Environment, health, safety) implementation inspection.

The factory consists of 1 factory with 3 production lines, all lines are automated.

Kiwa’s In-line product inspection based on random sampling from mass production showed the module’s

quality meets Phono Solar standards.

Audit overview:

During my 2-day visit at Phono Solar I found 4 minor non-conformities in the production area and the IQC

area. The quality management system was very robust.


C GENERAL INFORMATION ABOUT THE COMPANY

COMPANY PROFILE


PARENT COMPANY


Phono Solar Technology Co., Ltd., was founded by SUMEC Group Corporation (SUMEC GROUP), a y p p ( ),member of the China National Machinery Industry Corporation (SINOMACH). We started our renewable energy business in 2004energy business in 2004.

Driven by innovations in technology and an effective brand strategy Phono Solar continuously extends thebrand strategy, Phono Solar continuously extends the industry chain downstream and has realized moderate horizontal expansion to transform into a RENEWABLE ENERGY SOLUTION PROVIDER h iRENEWABLE ENERGY SOLUTION PROVIDER, who is committed to customer packaged solution for ENERGY SUPPLY , ENERGY MANAGEMENT , ENERGY SAVING and ENERGY STORAGE . This has been achieved through cutting‐edge applications of technology on residential & commercial systems, smart micro‐grid systems and also through the successful implementation of PV power plant developments, investments andpower plant developments, investments and operations globally.




PRODUCT INFORMATION AND FACTORY CERTIFICATION

List of solar modules sold

Mono-crystalline modules

Model Max Power (Wp) Tolerance Max Efficiency Number and size

of cell

PSxxxM-24/T xxx=280 to 340 in

steps of 5W ±3% 17.5% 156mm x 156mm x 72

PSxxxM-22/W xxx=255 to 310 in

steps of 5W ±3% 17.0% 156mm x 156mm x 66

PSxxxM-20/U xxx=215 to 280 in

steps of 5W ±3% 17.2% 156mm x 156mm x 60

PSxxxM-18/V xxx=195 to 255 in

steps of 5W ±3% 17.3% 156mm x 156mm x 54

PSxxxM-12/G xxx=130 to 170 in

steps of 5W ±3% 16.9% 156mm x 156mm x 36

PSxxxM-24/F xxx=170 to 210 in

steps of 5W ±3% 16.4% 125mm x 125mm x 72

PSxxxM-12/D xxx=85 to 105 in

steps of 5W ±3% 16.2% 125mm x 125mm x 36

PSxxxM-12/H xxx=90 to 105 in

steps of 5W ±3% 15.8% 125mm x 125mm x 36

Poly-crystalline modules

Model Max Power (Wp) Tolerance Efficiency Number and size

of cell

PSxxxP-24/T xxx=275 to 335 in

steps of 5W ±3% 17.2% 156mm x 156mm x 72

PSxxxP-22/W xxx=250 to 305 in

steps of 5W ±3% 16.7% 156mm x 156mm x 66

PSxxxP-20/U xxx=215 to 275 in

steps of 5W ±3% 16.9% 156mm x 156mm x 60

PSxxxP-18/V xxx=195 to 250 in

steps of 5W ±3% 17.0% 156mm x 156mm x 54

PSxxxP-12/G xxx=130 to 165 in

steps of 5W ±3% 16.4% 156mm x 156mm x 36

Table: Modules applying for insurance

Product and System Certification

Product and System Certification Maximum score 15

Kiwa score 15

Score rate of item 100%

Evaluation Documents and implementation complete

No. Assessed items Max score

Kiwa score

1 Product certification: IEC 61215; IEC 61730-1; IEC 61730-2 4 4

2 Product certification: PID (Potential Induce Degradation) 3 3

3 Factory certification: ISO 9001 4 4

4 Factory certification: ISO 14001 3 3

5 Factory certification: OHSAS 18001 1 1

6 Other certificates: MCS, Salt Mist, Ammonia Corrosion Test, Sand Test, UL. NA NA

Non-conformity, observations and remarks

Table: The modules’ main certifications list


Product Certification IEC 61215/61730 (Poly)

Issued by Certificate No. Issued Date Certificates cover model range

TUV SUD Z2 13 06 84700 004 7th June 2013

PSxxxP-24/T (xxx=275 to 335) in steps of 5W PSxxxP-22/W (xxx=250 to 305) in steps of 5W PSxxxP-20/U (xxx=215 to 275) in steps of 5W PSxxxP-18/V (xxx=195 to 250) in steps of 5W PSxxxP-12/G (xxx=130 to 165) in steps of 5W

Product Certification IEC 61215/61730 (Mono)

TUV SUD Z2 13 06 84700 001 7th June 2013

PSxxxM-24/T (xxx=280 to 340) in steps of 5W PSxxxM-22/W (xxx=255 to 310) in steps of 5W PSxxxM-20/U (xxx=215 to 280) in steps of 5W PSxxxM-18/V (xxx=195 to 255) in steps of 5W PSxxxM-12/G (xxx=130 to 170) in steps of 5W PSxxxM-24/F (xxx=170 to 210) in steps of 5W PSxxxM-12/D (xxx=85 to 105) in steps of 5W PSxxxM-12/H (xxx=90 to 105) in steps of 5W

PID Certification


Chemitox - Yamanashi

Report - 141195 9

th September

2014

Poly PSxxxP-24/T (xxx=275 to 335) in steps of 5W PSxxxP-22/W (xxx=250 to 305) in steps of 5W PSxxxP-20/U (xxx=215 to 275) in steps of 5W PSxxxP-18/V (xxx=195 to 250) in steps of 5W PSxxxP-12/G (xxx=130 to 165) in steps of 5W Mono PSxxxM-24/T (xxx=280 to 340) in steps of 5W PSxxxM-22/W (xxx=255 to 310) in steps of 5W PSxxxM-20/U (xxx=215 to 280) in steps of 5W PSxxxM-18/V (xxx=195 to 255) in steps of 5W PSxxxM-12/G (xxx=130 to 170) in steps of 5W PSxxxM-24/F (xxx=170 to 210) in steps of 5W PSxxxM-12/D (xxx=85 to 105) in steps of 5W PSxxxM-12/H (xxx=90 to 105) in steps of 5W

Ammonia Corrosion Test


TUV SUD Z2 14 09 84700 016 29th Sept. 2014

PSxxxM-24/T (xxx=280 to 340) in steps of 5W PSxxxM-22/W (xxx=255 to 310) in steps of 5W PSxxxM-20/U (xxx=215 to 280) in steps of 5W PSxxxM-18/V (xxx=195 to 255) in steps of 5W PSxxxM-12/G (xxx=130 to 170) in steps of 5W PSxxxM-24/F (xxx=170 to 210) in steps of 5W

TUV SUD Z2 14 09 84700 015 29th Sept. 2014


Salt Mist Test IEC 61701


TUV SUD Z2 14 11 84700 018 14th November

2014

PSxxxM-24/T (xxx=280 to 340) in steps of 5W PSxxxM-22/W (xxx=255 to 310) in steps of 5W PSxxxM-20/U (xxx=215 to 280) in steps of 5W PSxxxM-18/V (xxx=195 to 255) in steps of 5W PSxxxM-12/G (xxx=130 to 170) in steps of 5W PSxxxM-24/F (xxx=170 to 210) in steps of 5W

TUV SUD Z2 14 11 84700 019 14th November

2014



Sand Test - IEC 60068-2-68 AECTP 300, Method 313, Procedure II


SGS PV/13/BRU/00038 5

th September

2013

Mono PSxxxM-24/T (xxx=280 to 340) in steps of 5W PSxxxM-22/W (xxx=255 to 310) in steps of 5W PSxxxM-20/U (xxx=215 to 280) in steps of 5W PSxxxM-18/V (xxx=195 to 255) in steps of 5W PSxxxM-12/G (xxx=130 to 170) in steps of 5W PSxxxM-24/F (xxx=170 to 210) in steps of 5W PSxxxM-12/D (xxx=85 to 105) in steps of 5W PSxxxM-12/H (xxx=90 to 110) in steps of 5W PSxxxM-12/S (xxx65 to 75) in steps of 5W PS30M-12/C Poly PSxxxP-24/T (xxx=275 to 335) in steps of 5W PSxxxP-22/W (xxx=250 to 305) in steps of 5W PSxxxP-20/U (xxx=215 to 275) in steps of 5W PSxxxP-18/V (xxx=195 to 250) in steps of 5W PSxxxP-12/G (xxx=130 to 165) in steps of 5W PSxxxP-12/S (xxx=60 to 70) in steps of 5W PS30P-12/C

System Certification ISO 9001 Certification

Issued by Certificate No. Valid until Appendix China Quality Certification Centre

00114Q28876R2M/3200 25th September 2017

ISO 14001 Certification


00112E22379R1M/3200 7th November 2015

OHSAS 18001 Certification


00114S21299R1M/3200 27th September 2017

Table: the main certificates required in solar industrial market

System ISO/OHSAS Implementation

System ISO/OHSAS Implementation Maximum score 14

Kiwa score 14 Score rate of item 100%



Kiwa score

1

ISO 9001 quality management system procedure files are complete, records of updating, handing-out and withdrawing are clear; Phono Solar Quality Manual: PS – 1 – 01 Version 5, dated 19

th August 2014

Document Control Procedure – PS - 2 – 01 Rev 3 – dated 24th

December 2012

3 3

2

Documented procedures and records regarding managements review, training, skills and experience of the personnel, production process, logistics departments shall be maintained for at least more than 6 months; Document Control Procedure – PS - 2 – 01 Rev 3 – dated 24

th December 2012

Paragraph 6.3.6 c): states that records will be maintained for between 6 months and 25 years, depending on the type of document.

2 2


3

Waste (liquid, solid waste, gas) noise, chemical products are strictly controlled in factory; environmental monitoring report proving compliance with production permission shall be provided from third-party and no serious incident or environmental issue happened in recent two years; CTI (Centre Testing International), performs the third party environmental monitoring of the Phono Solar production facilities Last report (EDD36F000535) was issued 23

rd September 2013 and all environmental issues

were passed. There were no issues in the past 2 years

4 4

4

Employees should have official contract with manufacturer. Each employee has an individual contract with Phono Solar Employees operating under dangerous condition should be protected; Any employee requiring PPE will be issued with the specific equipment as required and this is stated in the work contracts in paragraph 5, points 1 to 5.

3 3

5

The company shall conduct internal audits at planned intervals to determine whether the quality management system is effectively implemented and maintained. Internal Audit Control Procedure – PS – 2 – 03 Revision 2 dated 15th December 2010 The internal audit shall include also environment aspects. Paragraph 6.1 of Procedure PS – 2 - 03: States that environmental issues will also be included in the internal audit. The internal audit shall conducted at least once a year. Paragraph 6.1 of Procedure PS – 2 - 03: States that internal audits are to be conducted at least 1 x year. Records of the audits and their results shall be maintained. I witnessed the last 4 audits dated:

15th August 2014

25th September 2013

15th August 2012

16th September 2011 Any necessary corrections, corrective actions and preventive actions are taken to eliminate detected non-conformities and their causes.

2 2



D. MODULE FACTORY INSPECTION

PRODUCTION PROCESS

Production process flow chart

工厂布局

L3-Z-22A

L3-Z-23A

L3-Z

L3-Z-22B L3-Z-24A

L3-Z-28A

L3-Z-28B

L3-Z-28C

L3-Z-28D

L2-Z-23A L1-Z-23A

L1-Z-23BL2-Z-23BL3-Z-23B

L2-ZK L1-ZK

L2-Z-22A L1-Z-22A

L2-Z-22B L1-Z-22BL2-Z-22CL3-Z-24B L2-Z-24A L2-Z-24B L1-Z-24A

L1-Z-24B L1-Z-24C

L2-Z-27

L3-Z-24a

L2-Z-28A

L2-Z-28B

L2-Z-28C

L2-Z-28D

L1-Z-28A

L1-Z-28B

L1-Z-28C

L2-DJ

L2-GF

L1-DJ

L1-GF

L3-BK

L1-ZKM

L2-BK

L1-C-FZL1-C-IV L1-C-NY L1-C-EL

L1-C-NY

L2-C-FZL2-C-IV L2-C-NY L2-C-ELL2-C-NY

L3-C-FZL3-C-IV L3-C-NY L3-C-ELL3-C-NY

Layout

1st Floor 2nd Floor


生产工艺流程

层压检验

Process

Auto

Tabbing

EVA&BS

Cutting

Auto

Laying

Layup Layup

EL Test

Lamination TrimmingCell

Sorting

Lamination

Inspection

功率测试

绝缘耐压

成品EL

装框装接线盒

固化

清洁终检包装注胶包装检验

割边上玻璃自动焊接

层叠1 层叠EL

层叠2 层压

筛选

自动铺设

裁剪

FramingCuringI-V

Test

J-Box

Mounting

Hi-Pot

Test

Final EL

Test

Final

Inspection

Packaging Cleaning PottingPackaging

Inspection

拉力测试

交联度

功率校准

AB胶配比

胶量检查

生产工序

检验工序

Glass

Transmission

Peel Test

Layup

Gel Content Test

Glue Qty’

T/checkA/B RatioCalibration

Lift

层叠3

Layup


Production process

Production process Maximum score 32

Kiwa score 28

Score rate of item 87.5%

Evaluation Documents or implementation not complete


Kiwa score

1

Workshop (Production line)

Workshop(s) is/are tidy and clean and environmental condition is well controlled YES, the environment is specified to be 25

0C ± 3

0C and ≤70% humidity. I checked

records and the readings were all within specification.

Workstations in workshop are well organized with clear signs and matched the manufacturing process’ flow chart

Production parameters and setting of equipment/machine shall be done according to the Standard Operating Procedure;

2 1

2

Employee and work instructions

Workers are wearing uniform; YES

Standard Operating Procedure files or work instructions are available at each workstations; Every workstation that I checked, had current SOP’s available.

2 2

3

Raw materials

Raw materials should be qualified and match with the components listed in the Constructional Data Form (Bill Of Materials) The “First EVA 806” was being used in the production, this is the same EVA as is certified in the CDF

The prepared process of raw materials should match Standard Operating Procedure, especially the process of EVA and backsheet's cutting records, tracking information and ribbons' pre-handling;

3 1

4

Solar cell soldering

Setting of soldering machines is in according to Standard Operating Procedure; Automatic stringers “TT1200HS” are installed in production line and settings are in accordance with SOP: PS – 3 – JS – 007

Cells soldering should keep defect rates low; YES

Product tracking with acquired serial number should start from this step; Product tracking starts at the end of this process step

Workers should operate according to Standard Operating Procedure file; YES

4 4

5

String matrix composition (cells layout)

Workers should wear gloves during layout operation; All workers in this area were wearing gloves.

Layout dimension of matrix array and leading bus bar soldering should match Standard Operating Procedure files or technology design requirement; In accordance with: PS – 3 – ZJ – 025

2 2

6

Intermediate testing, before lamination: VI and EL Test

The evaluation criteria of a PV module during the visual inspection (VI) and the Electroluminescence Test (EL) must be clear; The EL criteria was available at the EL machine. PS – 3 – ZJ – 036 The worker was appropriately trained.

Inspected defective semi-product should be statistic data, marked and segregated; There is a separate area for defects

Testing performed according to Standard Operating Procedure files; YES

3 3

7

Lamination

Setting of laminators should be in according to the Standard Operating Procedure; Laminators were set in accordance with SOP; PS – 3 – GC – 012

Laminated semi-product is cooled after lamination process;

3 2


8

Framing and Junction box connection

Framing process according to Standard Operating Procedure, silicone gel between frame and backsheet is in good condition; Process is in accordance with: PS – 3 – GC - 018

Junction box is well fixed onto the module at the designated place and well encapsulated, leading bus bar soldering is well done; Process was performed well, a jig is used to position the J-Box correctly

2 2

9

Sealant curing and cleaning

The temperature and humidity of curing area should be under control; I checked the records and all data was within the specified zones: 25

0C ± 2

0C and 30 - 70% humidity. This is recorded on document: PS – QL – ZJ - 023

Curing time should be more than 4-hour. Records shall be maintained; 8 hours

Chemicals used for module’s cleaning should be controlled; 98% alcohol.

2 2

10

Final testing: insulation test and EL Test

Insulation test, 100% control (each PV module) according to the standard IEC 61215 and 61730-2; YES

EL test after lamination should be a 100% control. YES

The defective modules must be marked and segregated according to a documented procedure; A clear NC area is defined

3 3

11

Final testing: IV-testing (control of output power – flash testing)

The flash testing must be performed at Standard Test Conditions (STC: AM=1.5; 1000W/m

2, 25 ºC) or at ambient temperature using the temperature coefficients for

correction (provided by an accredited laboratory); In accordance with PS – 3 – ZJ – 035 : Flash testing is performed at ambient temperature using qualified temperature coefficients

An accredited laboratory on an annual basis should calibrate the reference “golden” sample. This is performed yearly. I witnessed the TUV Rheinland test report (PSUP 0058590914), dated 26

th January 2015

Copied reference modules (“silver” samples) should be valid (3 months valid time) and the comparative calibrated parameters between “golden” and “silver” are traceable; In accordance with PS – 3 – ZJ – 007: Silver sample is valid for max 3 months and parameters are traceable

“Golden” sample test report issued by an accredited laboratory (IV curve and if necessary temperature coefficients) is available;

Frequency of calibration should be at regular time (every day); Every 2 hours

4 4

12

Packaging

Packaging according to Standard Operating Procedure; YES, in accordance with: PS – 3 – JS – 009

Final check must be performed before packaging. YES

2 2

Non-conformity, observations and remarks Non-conformity 1: item 1 - The trolley used for string rework has mixed strings on the trolley (Pass and Fail) it is not clear which strings have which status. Non-conformity 2: item 3 - The cutting time for the large and small EVA sheets is not recorded and is not traceable. Also the quantity of the small EVA sheets far exceeds the quantity that will be used during the permitted time. Non-conformity 3: item 7 - The temperature of the laminates is not checked, to ensure that the temp is below the specified temperature of 50

0C, before cutting.


QUALITY ASSURANCE

Calibration/check of measuring equipment

Calibration/check of measuring equipment Maximum score 3

Kiwa score 3




Kiwa score

1

The testing equipment shall be correctly maintained and calibrated on a regular basis. The equipment must be provided with a label indicating the date of the last calibration and the next due date. Calibration’s records shall be maintained. I checked the details of the Hi Pot tester in the Lab. Manufacturer: MC Ser. Number: CS9922I Calibrated: 27

th March 2015 valid for 1 year

Certified by: Nanjing Institute of Measurement and Testing Technology Certificate Number: 10227699

3 3


Control of production equipment

Control of production equipment Maximum score 2

Kiwa score 2 Score rate of item 100% Evaluation Documents and implementation complete


Kiwa score

1

The relevant production equipment shall be checked on a regular basis, such that in case of defection of a failure the previous production can be traced. Procedure: PS – 3 – ZJ – 005 Revision 3, dated 3

rd September 2013 - Maintenance Control

Procedure. Outlines in detail which machinery is maintained weekly, monthly and yearly. I witnessed the 2014 and 2015 plan

2 2



In-house lab-testing

In-house lab-testing Maximum score 5




Kiwa score

1

The in-house testing laboratory (inside factory), should be tidy and clean and environmental condition is controlled; Laboratory is Certified by both TUV SUD and TUV Rheinland. The lab facility is very professional

2 2

2 Product's annual experimental plan should be clear, samples from production should randomly be selected for testing according to the standard IEC 61215 and IEC 61730. See flowchart below, describing the in house lab test plan for 2014 and 2015

3 3


Lab Test Plan 2014


Lab Test Plan 2015


Product modification management and product traceability

Production modification and product traceability Maximum score 9




Kiwa score

1

There is a documented procedure describing how to deal with changes on products. Records of modification shall be maintained; Quality Procedure for ECN: PS – 2 – 008 Revision 1, Change Management Procedure, dated 3

rd September 2013 describes the handling of product changes.

2014 had 1 ECN 2015 has 4 ECN’s so far

2 2

2

There is a documented procedure that ensures the report of changes of the components and/or product design to the certification body. Procedure PS – 2 – 008: Change Management Procedure,. Paragraph 4.4 part c) ensures that the Certification Body will be informed if the change is relevant to the IECEE retest guidelines. If there are changes in critical components (according to the IECEE Retesting Guideline) the certification and the bill of material shall be updated;

2 2

3 There is an electronic tracking system (e.g. Manufacturing Execution System) to check raw materials, production steps, defective products by unique bar code in the system; YES - MDS

3 3

4

The tracking system can identify qualified/unqualified products in order to avoid wrong loading of the finished products in container. Each production order is loaded into the MDS, including the BOM. Should their be a mistake with any components, the system automatically identifies this, thus preventing the loading of incorrect products

2 2


QUALITY CONTROL

Quality Management Department

Quality Management Department Maximum score 5

Kiwa score 5




Kiwa score

1 There is a separate Quality Management Department which performs the control quality of product and which operates independent from production department; See Organisation Chart below

2 2


2

The Quality Management Department shall monitor and measure the characteristics of the product to verify that product requirements have been met. YES There are operative instruction for inspectors. Procedure PS – 3 – ZJ – 010: Incoming Quality Control Procedure PS – 3 – ZJ – 065: In Process Quality Control Procedure PS – 3 – ZJ – 031: Out going Quality Control The inspectors must be qualified to perform the inspection. YES The controls shall be carried out at appropriate production steps: incoming quality control; in-process quality control; outgoing quality control. There are inspectors check lists for IQC, IPQC and OQC

3 3


Organisation Chart


Responsibility of each section are as follows:

Mr. Yejian, Production manager, [email protected]

Post responsibility of Production Manager

1. Managements convenes manages the regular meeting every day, the direction is in charge of the

control system, the operation sequence execution situation. 2. The manager who must be responsible for safety of production, site management and other works to

improve the production efficiency. 3. The manager who must be responsible for strict control of production cost, pays special attention to

saving energy and reducing consumption, and encouraging saving. 4. The manager who must be responsible for the staff management.

Mr. Hongyang, QA manager, [email protected]

Post responsibility of QA Manager

1 Refine the department functions, improve the system and configuration personnel. 2. According to the development of quality target, planning and carrying out the plan. 3. Do a good job in quality control and improve the quality continuously.

Mr. Wangqi, Technical manager, [email protected]

Post responsibility of Technical Manager

1. Research and development of new products. 2. Leading in the new products and managing the department. 3. Actively cooperate with various departments within the department of special improvement to improve production efficiency and product quality.

mailto:[email protected]




Incoming quality control / BOM (Bill Of Materials)

Bill Of Materials (list of critical components) Poly and Mono Component Manufacturer/trademark Type/model

Superstrate (front cover)

1 Tianjin Seed Glass Co., Ltd.

1634 x 986 2 Zhangjiagang City Guangfeng Glass Co., Ltd.

3 Jiangsu Solartech Science And Technology Development Co.,Ltd

Substrate (rear cover)

1 Krempel GmbH PVL 1000V (black&white)

AKASOL PVL 2- 1000V +Primer

2 3M DyneonTM Scotchshield Film17

3MTM ScotchshieldTM Film 910

3 TOYO Aluminium K.K FPL-FAW-T250-W50

Encapsulation material

1 Hangzhou First PV Material Co., Ltd. F806

2 Bridgestone corporation S11

Frame 1 Jiangyin Xiehong Metal Co.,Ltd. 6063-T5 Al alloy(black&white)

2 Jiangsu Smart System Integration 6063-T5 Al alloy(black&white)

Adhesive (silicone) frame

1 Beijing Tonsan Adhesive Co.,Ltd. TS 1527

2 Jiangsu Tianchen Silica Material Co.,Ltd

HT8258

Solar cell (Poly)

1 JA Solar Holdings Co.,Ltd. JA156

2 JiangsuShunfeng Photovoltaic Technology Co., Ltd.

SF156(3BBS)

3 Phono Solar Technology Co., Ltd. 156(3BBS)

Solar cell (Mono)

1 JA Solar Holdings Co.,Ltd. JA156S

JA125S

2 JiangsuShunfeng Photovoltaic Technology Co., Ltd

SF156S(3BBS)

SF125S

3 Phono Solar Technology Co., Ltd. 156S(3BBS)

By-pass diode

1 PANJIT 10SQ050

SB1540LS

Junction box

1 Phono Solar Technology Co., Ltd. PS-BOX007B

PS-BOX010

2 Jiangsu Tonglin Electric Co., Ltd

TL-BOX007B

TL-BOX007BN6

TL-BOX007

TL-BOX010

3 SolarEdge Technologies OPJ300-LV

Adhesive (silicone) junction box

1 Beijing Tonsan Adhesive Co.,Ltd. TS 1527

2 Jiangsu Tianchen Silica Material Co.,Ltd.

HT8258

Cell and string connector

1 Chanline Photovoltaic Electronic Co.,Ltd . Base Cu Coating: Sn / Pb

2 Jiangsu Sun Photovoltaic Technology Co.,Ltd. Base Cu Coating: Sn / Pb

3 Wuxi Sveck Technology Co., Ltd. Base Cu Coating: Sn / Pb

4 Wuxi Sveck Technology Co., Ltd Base Cu Coating: Sn / Pb

Table: list of suppliers and materials used


Incoming quality control Maximum score 21

Kiwa score 20

Score rate of item 95.2%

Evaluation Documents or implementation not complete


Kiwa score

1

The organization shall evaluate and select suppliers. Criteria and a guideline for selection and evaluation of the suppliers shall be established. Evaluation of New Suppliers Procedure: PS – 3 – CG - 01 See process flowchart (Chinese) below Records of the results of evaluations shall be maintained. YES – I witnessed the evaluation of Jiangsu Shunfeng Cell Supplier dated 12

th December

2014 The company shall implement the audit at every supplier facility at least once a year; Main component suppliers are audited yearly in accordance with paragraph 6.1.2.3

2 2

2

The purchased products shall meet the specific purchase requirements and match the Constructional Data Form (Bill Of Materials) of product’s certifications. YES Suppliers of the PV components should be certified ISO 9001 and ISO 14001; I checked the Cell supplier Jiangsu Shunfeng. Current ISO 9001 and ISO 14001 and OHSAS 18001 certification, is in place.

5 5

3

The storage area should be clean, marked signs and the environmental conditions (temperature, humidity) controlled; Temperature and humidity are controlled in certain areas, not all IQC areas are controlled, as it is not necessary. I checked the data from August 2014 and it was within specification.

2 2

4

Storage of PV components listed in the Constructional Data Form is according to their property. Especially the sensitive polymeric materials shall be kept in area with environmentally controlled conditions and the maximum storage period shall be defined. Materials entry or exit from warehouse comply with the principle of First in-First out (FIFO); PS – QL – CK – 001: Is the form used to record the temperature and humidity in the EVA storage area. Specification states: ≤30

0C and ≤60% humidity. All data was correct

3 2

5

The non-conforming raw materials should be handled according to documented procedure, shall be marked with a label and they must be place in an separated area; There is a clearly identifiable area for NC products. All products within the area were clearly identified with a label. Red labels are for NC and green labels are for good products

4 4

6

For each component/material there is an inspection standard (guidance sheet) where are listed the quality level requirements for acceptance/rejection; I checked the criteria for frame inspection: PS – 3 – ZJ - 054 It clearly defines the criteria including the quantity to be inspected per Lot. AQL method is used

2 2

7

Defects data of main incoming materials shall be statistical and analyzed in regular time interval. In case of non-conformity, improvement plan shall be provided to supplier for improvement. Year to date as follows: January – 97.85% February – 97.67% March – 98.02% April – 97.16% May – 96.9% Target is greater than or equal to 96%

3 3

Non-conformity, observations and remarks Non-conformity 4: item 4 - In the EVA warehouse, I saw 2 pallets of small rolls of EVA that were not in cardboard boxes, I was unable to determine what the date of manufacture of the EVA was, thus I was not able to determine the shelf life expiry of the product. I was told the rolls were to be sent back to the supplier, however there was no label and no segregation of the product.


Supplier Evaluation Process Flowchart



In-process quality control

In-process quality control Maximum score 22




Kiwa score

1

Inspectors should match workstation requirement and routine inspection match their work instruction, 2 to 4 hours for one loop; Work performed in accordance with Procedure PS – 3 – ZJ – 065: In Process Quality Control. The loop duration is 2 hours

2 2

2 Inspector check lists should cover all aspects of the production line (raw materials, operative instructions, calibration, maintenance). The inspection records must be traceable; YES: Checklist PS – QL – ZJ - 009

2 2

3 Initial product’s BOM list should match customer requirements. Confirmation record is traceable; YES

3 3

4

Inspectors and management team of production know the procedure of non-conforming semi-products. Non-conforming semi-products should be placed in separated area and marked. YES Products with major deficiency or high repair rate are analyzed and settled by quality control team; YES

5 5

5 The production management process uses the Key Performance Indication Method or similar to evaluate the production process; KPI tool is used for this evaluation

3 3

6

In-process quality control inspector findings of production process should be statistical and analyzed in regular intervals; Year to Date failure rate is as follows: January – 97.67% February – 97.72% March – 98.31% April – 98.1% May – 97.89% In case of problems and non-conformity the management responsible for the area shall ensure that corrections and corrective actions are taken; YES

2 2

7

Routine quality meetings should be held in regular time intervals. Weekly quality meeting s are held, I witnessed the last 3 reports The company shall continually improve the quality of the main production process. Records of the improvement shall be maintained; Meeting minutes and corrective actions are recorded

3 3

8 In-process quality control management procedure (flow chart), quality statistics analysis, points of defects occurring frequently/easily should available at each workshop. YES – See IPQC flowchart below

2 2



IPQC Flowchart



Outgoing quality control

Outgoing quality control Maximum score 10

Kiwa score 10




Kiwa score

1

Outgoing quality control inspection guidance criteria with clear acceptable quality level requirement should be complete. In accordance with Procedure PS – 3 – ZJ – 031: Outgoing Quality Control Records of outgoing quality control inspection can be checked and are traceable; YES

5 5

2 Non-conforming finished products from outgoing quality control inspection should be separated with clear status; YES

2 2

3

Outgoing quality control inspector findings should be statistical and analyzed in regular intervals; Year to Date failure rate is as follows: January – 99.62% February – 99.68% March – 99.62% April – 99.65% May – 99.70% In case of problems and non-conformity the management responsible for the area shall ensure that corrections and corrective actions are taken. YES

3 3



Customer Engineering Services (CES)

Customer Engineering Services Maximum score 7




Kiwa score

1 There is a service offer pre-sale and/or after-sale service for customers. The flow chart of after-sale customer service should be clear, customer can be checked easily; See Flow chart below

2 2

2

There is an adequate documented system concerning complaints received; Customer Complaint and Suggestion handling Procedure: PS – 2 - 11 In 2014 there was a total of 7 complaints of which all are closed. The total value of module costs within the complaints was Euro 400

3 3

3 Delivered products should be provided with powerful warranty, and the implementation records of warranty can be checked and are traceable. See Warranty below

2 2


After Sales Flow Chart


Product Warranty

Stability / Reliability / Creativity

Limited Warranty for PV-Modules

(Version EN-W-SM-2015-V1)

Phono Solar Standard PV Modules with the Model Names covered under this warranty are:

PSXXXM-24/F (XXX = 180, 185, 190, 195,200,205,210)

PSXXXM-20/U (XXX = 230,235,240,245,250,255,260,265,270)

PSXXXP-20/U (XXX = 230,235,240,245,250,255,260,265)

PSXXXM-24/T (XXX = 280,290,300,310,320,330)

PSXXXP-24/T (XXX = 280,290,300,310,320,330)

The product (hereinafter the “Product”) in this Warranty means the Standard PV Module(s) manufactured by Phono

Solar Technology Co., Ltd. (hereinafter the “Phono Solar”). The Phono Solar warrants its Product(s) in compliance

with the terms and conditions as stipulated below.

The Customer in this Warranty means the individual person or company who purchases Phono Solar Product.

This “Limited Warranty for PV-Modules“ is valid for all Standard Modules delivered from Phono Solar since January

1st, 2015

1. Limited Product Warranty –Repair or Replacement

Ten (10) years

Phono Solar warrants that the Product including factory-assembled DC connectors and cables, if any, will be free

from defects in material and workmanship under normal application, installation, operation, use and service

conditions. If Product fails to conform to this warranty, within a period of ten (10) years from the date of delivery by

Phono Solar to its first buyer, Phono Solar will, at its sole discretion, either repair the defective Product(s) at no

charge; or replace the defective Product(s) or part thereof by a new or remanufactured equivalent at no charge,

within the above specified period. This repair or replacement remedy shall be the sole and exclusive remedy

provided under the “Limited Product Warranty” and shall not extend beyond the ten years period set forth herein.

This “Limited Product Warranty” does not warrant a specific power output, which shall be exclusively covered under

clause 2 hereinafter (“Limited Peak Power Warranty”).

2. Limited Peak Power Warranty - Limited Remedy

Twelve (12) years

If, within a period of Twelve (12) years from the date of delivery by Phono Solar to the first buyer any Product

exhibits a power output less than 90% of the minimum “Peak Power at STC”1 as specified as of the Phono Solar´s

Page 1 of 5

江苏辉伦太阳能科技有限公司 Phono Solar Technology Co., Ltd. 南京市浦口高新技术开发区星火路 1号苏美达科技工业园邮编: 210032 No. 1 Xinghuo Rd.,Nanjing Hi-tech Zone,Nanjing, China

电话: +86 25 58648000 传真: +86 25 58638009 Tel: +86 25 58648000 Fax: +86 25 58638009 网址: www.phonosolar.com Web: www.phonosolar.com 邮箱: [email protected] E-mail: [email protected]





The return of any PV-modules will not be accepted unless prior written authorization for the return and evaluation

of the claimed defect has been given by Phono Solar. To the extent necessary for processing the return request

Phono Solar or its authorized person shall be given commercially reasonable access to the Product(s) for inspection

and analysis of the claimed defect. In connection with both the “Limited Product Warranties” and “Limited Peak

Power Warranties”, Phono Solar shall reimburse Customer for reasonable, customary and documented

transportation charges by sea freight for both the return of the Product(s) and reshipment of any repaired or

replaced Product(s), only if this cost is authorized by Phono Solar customer service department.

6. Severability

If a part, provision or clause of this “Limited Warranty for PV-Modules”, or the application thereof to any person or

circumstance, is held invalid, void or unenforceable, such holding shall not affect and shall leave all other parts,

provisions, clauses or applications of this “Limited Warranty for PV-Modules”, and to this extent such other parts,

provisions, clauses or applications of this “Limited Warranty for PV-Modules” shall be treated as severable.

7. Disputes

In case of any discrepancy in a warranty-claim, a first-class international test-institute such as Fraunhofer ISE in

Freiburg/ Germany, TÜV Rheinland in Cologne/ Germany or ASU Arizona State University shall be involved to judge

the claim finally. All fees and expenses shall be born by the losing party, unless otherwise awarded. The final

explanation right shall be borne by Phono Solar.

8. Various

The repair or replacement of the Product(s) or the supply of additional Product(s), does not cause the beginning of

new warranty terms, nor shall the original terms of this “Limited Warranty for PV-Modules” be extended. Any

replaced Product(s) shall become the property of Phono Solar made for their disposal. Phono Solar has the right to

deliver another type (different in size, color, shape and/or power) in case Phono Solar discontinued producing the

replaced Product(s) at the time of the claim.

9. Warranty Transfer

This warranty is transferable from the original Customer to any assignee and remains in effect for the time period

remaining under the limited warranties, provided the Product remains installed in its original location at the

warranty registration.

10. Force Majeure

Phono Solar shall not be responsible or liable in any way to the customer or any third-party arising from any

non-performance or delay in performance of any terms and conditions of sale, including this "Limited Warranty for

PV-Modules ", due to acts God, war, riots, strikes, warlike conditions, plague or other epidemics, fire, flood, or any Page 4 of 5





other similar cause or circumstance beyond the reasonable control of such Phono Solar. In such cases, performance

by Phono Solar of this Limited Warranty shall be suspended without liability for the period of delay reasonably

attributable to such causes.

1 “Peak Power at STC” is the power in Watt peak that a PV- Module generates in its Maximum Power Point.

“STC” are as follows:

Light spectrum of AM 1.5, (b) an irradiation of 1000 W per m2 and (c) a cell temperature of 25 degree centigrade at

right angle irradiation.

The measurements are carried out in accordance with IEC 61215 as tested at the connectors or junction box

terminals – as applicable – per calibration and testing standards of Phono Solar valid at the date of manufacture of

the PV-modules. The power output shall be measured by a laboratory approved by Phono Solar.

Contact

PHONO SOLAR TECHNOLOGY CO., LTD.

Address : No. 1 Xinghuo Rd., Nanjing Hi-tech Zone, Nanjing, China

Tel : 86 25 5863 8000

Fax : 86 25 5863 8009

Web : http://www.phonosolar.com

Email: [email protected]

Page 5 of 5




Kiwa In-line product inspection

Testing of randomly selected PV modules

In-line product checking (testing) Maximum score 5

Kiwa score 5


Evaluation score Documents and implementation complete


Kiwa score

1

Wet leakage current test according to IEC 61215A or insulation test according to IEC 61730-

2B

for 2 sample; AThe maximum test voltage shall be equal to 500 V or the maximum system voltage for the module, whichever is

greater. Maintain the voltage at this level for 2 min. BThe maximum test voltage shall be equal to 2.000 V plus four times the maximum system voltage for application-

class A. Maintain the voltage at this level for 1 min. Repeat the test: the maximum test voltage shall be equal to 500 V or the maximum system voltage for the module, whichever is greater. Maintain the voltage at this level for 2 min. Pass criteria: A,B

For modules with an area of less than 0,1 m2 the insulation resistance shall be not less than 400 MΩ;

For modules with an area larger than 0,1 m2 the measured insulation resistance times the area of the module shall be

not less than 40 MΩ⋅m2.

2 2

2 Flash test for 2 samples under STC conditions or using temperature coefficients for corrections.

3 3



In-line product checking (testing) Items Test comments

Test nr.1 (insulation)

I randomly selected 2 modules from the OQC area, for the wet leakage test that I then witnessed. Results were as follows:

Module ID – PSUP62623160615 – Test passed – 9.3 Gohm

Module ID – PSUP52433160615 – Test passed – 8.2 Gohm

Test nr.2 (flash test)

I randomly selected 2 modules from the OQC area, for the flash test that I then witnessed. Results were as follows in the next section of this report.

Module ID – PSUP75043160615

Module ID – PSUP81893160615

Test nr.2 - Re-flashing of randomly selected PV modules

Flash-test

Pmax (W) DP (W) Voc (V) Isc (I) Vmax (V) Imax (I)

Sample nr.

PV module serial nr.

RIT PTR - RIT PTR RIT PTR RIT PTR RIT PTR

1 PSUP75043160615 258.68 258.22

0.46 38.26 38.24 8.85 8.84 30.78 30.87 8.40 8.36

2 PSUP81893160615 258.96 258.69

0.27 38.22 38.14 8.83 8.94 30.94 30.68 8.37 8.43

Average Output Pmax 258.82 258.46

Remark: RIT=Random Inspection Test, PTR=Production Test Record, DP=Deviation Power of RIT minus PTR The average deviation and the individual deviation between re-flashing result from the random inspection test (RIT) and the production test record (PTR) shall be within the tolerance of the solar simulator.


CONCLUSIONS OF FACTORY INSPECTION

Product and system certification

All product and system certificates were witnessed and are correct

Production process

The production process at Phono Solar is fully automated. I witnessed one of the 3 automated production

lines, this was very efficient, there are a few areas where I found a total of 4 minor non conformities.

Standard operating procedure (production line)

SOP’s are available at all workstations within the production facility, in the laboratory, warehouse & material

preparation area. All workers follow SOP instructions correctly.

Calibration/control of measuring equipment and production equipment

All equipment that I checked was covered in the database and was calibrated correctly. All devices are

calibrated externally at certified third party institutions. All calibrated instruments were labelled correctly with

test and expiry dates.

Product modification management and product traceability

All product changes are handled according to Company procedures.

Each module is fully traceable due to its unique ID and the companies MDS system

Incoming quality control

Phono Solar has a very strong IQC and all work is performed in accordance with the companies operating

Instructions.


This process is very well documented and runs in a continuous 2 hour loop during the production process


100 % of all modules are checked in the OQC and in accordance with the Quality Departments strict OQC

criteria.


Customer engineering service (CES)

All customer complaints are handled internally and all complaints from 2014, have been dealt with and

closed

Kiwa in-line product inspection

I selected 4 random samples from the production and carried out reference testing. 2 were used for flashing

and 2 were used for insulation testing. Please see the results on page 40

E. COMMENTS AND RECOMMENDATIONS

KEY POINTS INSPECTION ITEMS

In the table below are listed the 20 key items of the factory audit. The 20 items cover the production process, product and quality management. If the key items are well implemented, it is possible to assure an high quality product.

Key items

Key item No.

Description of inspection items Implementation

Yes No (non-conformity)

1 Certification ISO 9001 / ISO 14001

2 Product certification IEC 61215 and IEC 61730

3 Product PID certification

4 Internal audit conducted in regular time

5 Waste, chemical products are strictly controlled in factory, no serious incident or environmental issue happened in recent two years

6 Production parameters and setting of equipment/machine shall be done according to the Standard Operating Procedure

7 Production process complete and EL test performed before and after lamination

8 Cells soldering should keep defect rates low

9 Reference “golden” sample must be valid


10 Solar simulator shall be calibrated by “golden” sample

11 The testing equipment shall be correctly maintained and calibrated on a regular basis. The equipment must be provided with a label indicating the date of the last calibration and the next due date. Calibration’s records shall be maintained

12 There is a documented procedure that ensures the report of changes of the components and/or product design to the certification body. If there are changes in critical components (according to the IECEE Retesting Guideline) the certification and the bill of material shall be updated

13 There is an electronic tracking system (e.g. Manufacturing Execution System) to check raw materials, production steps, defective products by unique bar code in the system

14 Operative instruction for inspectors shall be available in order to perform the incoming quality control, in-process quality control and outgoing quality control. Inspectors must be qualified

15 The purchased products shall meet the specific purchase requirements and match the Constructional Data Form (Bill Of Materials) of product’s certifications. Handling of materials according to internal Standard Operating Procedure. Suppliers of the PV components should be certified ISO 9001 and ISO 14001

16 Defects data of main incoming materials shall be statistical and analyzed in regular time interval. In case of non-conformity, improvement plan shall be provided to supplier for improvement

17 Inspectors and management team of production know the procedure of non-conforming semi-products. Non-conforming semi-products should be placed in separated area and marked. Products with major deficiency or high repair rate are analyzed and settled by quality control team

18 Routine quality meetings should be held in regular time intervals. The company shall continually improve the quality of the main production process. Records of the improvement shall be maintained;

19 Outgoing quality control inspection guidance criteria with clear acceptable quality level requirement should be complete. Records of outgoing quality control inspection can be checked and are traceable

20 There is an adequate documented system concerning complaints received


SUMMARY COMMENTS (NON-CONFORMITY - OBSERVATIONS)

Table below provides a summary of comments to Phono Solar for possible improvements in relation to

specific issues observed during the audit.

Comments classification:

Serious non-conformity

Is considered a serious non-compliance any lack of system/product which undermines the effectiveness of the product (e.g.: a

systematic or intentional failure to fulfil specific requirements; a failure in fulfilling the legal requirements applicable to the

system/product);

Minor non-conformity

Is considered a minor non-compliance any lack of system/product;

Observation

Is considered an observation any situation found during the audit that can give rise to an improvement of the management

system or of the product/service subject to certification.

In case of non-conformities the Organization is committed to communicating root cause analysis, corrections,

corrective actions within 20 working days from the date of this audit.

ISO implementation and production process comments

No. Section Item Type and description of

comments

1 Production Process Item 1. Workshop Production Line

Non-conformity 1 (Minor) The trolley used for string rework has mixed strings on the trolley (Pass and Fail) it is not clear which strings have which status

2 Production Process Item 3. Raw materials

Non-conformity 2 (Minor) The cutting time for the large and small EVA sheets is not recorded and is not traceable. Also the quantity of the small EVA sheets far exceeds the quantity that will be used during the permitted time.

3 Production Process Item 7. Lamination

Non-conformity 3 (Minor) The temperature of the laminates is not checked, to ensure that the temp is below the specified temperature of 50

0C, before cutting

4 Incoming Quality Control Item 4.

Non-conformity 4 (Minor) In the EVA warehouse, I saw 2 pallets of small rolls of EVA that were not in cardboard boxes, I was unable to determine what the date of manufacture of the EVA was, thus I was not able to determine the shelf life expiry of the product. I was told the rolls were to be sent back to the supplier, however there was no label and no segregation of the product.


F. FACTORY AUDIT CONCLUSIONS

OVERVIEW OF MANUFACTURER

Phono Solar Technology Co., Ltd. Establishment date 5th June,2008

Production site(s) No.1 Xinghuo Road, Nanjing Hi-tech Zone, 210061, Nanjing,

China

Main shareholders

First majority 100% by SUMEC HARDWARE & TOOLS

CO.,LTD Second-largest

Third-largest

Others

Main markets Export ratio (%) 50% Domestic ratio (%) 50%

System certificates ISO9001 ISO14001 OHSAS18001 Product ranges (PV modules)

See first pages of this report

Production lines

Production capacity

2013 2014 Monthly 2015

Theoretical 220 MW 260 MW 25 MW Actual 200 MW 240 MW 23 MW

Operating area Total area 20 000 m2 Production area 10 000 m2

Employees

Total number of employees

405

Number of employees per department

Sales 35 R&D Department 20

Manufacturing 270 Quality control 80

Product quality

Quality Inspection

Qualified/Failure (%) Remarks

Incoming quality control

2.6% Lot defect Rate


98% First pass Rate


0.35% Sample failure Rate


GENERAL RESULTS

General inspection evaluation score of main audit factory, main audited Workshop

No. Audit Items Max. score

Kiwa score

Score rate (%)

Compared with last year

Better Same Worse

1 Product and System certification 15 15 100

2 System ISO/OHSAS Implementation 14 14 100

3 Production process 32 28 87.5

4 Calibration/check of measuring equipment

3 3 100

5 Control of production equipment 2 2 100

6 In-house lab-testing 5 5 100

7 Product modification management and product traceability

9 9 100

8 Quality Management Department 5 5 100

9 Incoming quality control 21 20 95.2

10 In-process quality control 22 22 100

11 Outgoing quality control 10 10 100

12 Customer Engineering Services (CES) 7 7 100

13 Kiwa in-line product inspection 5 5 100

Overall Audit Evaluation Score 150 145

General inspection evaluation score of additional Workshop (if applicable)


Kiwa score

Score rate (%)

Compared with last year

Better Same Worse

1 Production process 32

2 Calibration/check of measuring equipment

3

3 Control of production equipment 2

4 Product modification management and product traceability

9

5 In-process quality control 22

6 Outgoing quality control 10

Overall Audit Evaluation Score additional Workshop

78

General Inspection Evaluation Scores


Kiwa score

Weight Rate

Non-conforming Key Items, Qty

Comprehensive score

1 Factory general score 72 72 100% 72

2 Main audited Workshop 78 67 100% 67

3 Additional Workshop (if applicable) 78 NA NA NA

Overall Audit Evaluation Score 150 Comprehensive final score 145

Final score percent 96.6%

Overall rating (0 ～100)

Bad (0 ～ <60) Avarage (≥60 ～ 80) Good (≥80 ～ 90) Excellent (≥ 90 ～ 100)


RESULT

According to:

Audit results for the implementation of IEC 61215/61730 and ISO 9001/ISO 14001/OHSAS 18001;

Audit of Standard Operating Procedures for quality control and production processes;

Audit of documents and materials provided by Phono Solar;

Completeness of manufacturing process and independent Quality Control;

Mutually agreed inspection standards between SolarIF and Kiwa.

Kiwa overall audit final result of Phono Solar:

Score: 96.6% Excellent

Kiwa Auditor: Simon A. Clipsham Date: 9th June 2015 Signature: Simon A. Clipsham