Chapter 5.

BIG on QUALITY

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GENERAL QUALITY ASSURANCE POLICY OVERVIEW
Inspection Policy

All merchandise is inspected upon receipt at DXLG for conformance to quality and
measurement specifications. If the selected samples pass these criteria, the entire
shipment is accepted. If the samples fail the inspection, the entire shipment stays on QA
Hold.

The procedure used is the Single Sampling Plan taken from the American National
Standard Institute ANSI/ASQC Z1.4, published by the American Society of Quality
Control.

The disposition of shipments placed on QA Hold is made based on discussions with the
Global Sourcing, Quality Assurance, Technical and Merchandising teams in Canton, MA.
If the deviation from the standards is determined to be significant, the following process
may be adopted:

100% inspection and / or correct at either DXLGs DC or an outside audit and

repair service
100% inspection and / or correct at the Vendor
Return to Vendor all defective units (RTV)

Both DXLG and vendor should agree upon the final disposition of a shipment. If 100%
inspection or any correction occurs, charges will be assessed to vendor for operating,
labor and possibly loss of sales incurred in resolving the problems and delaying the
distribution of goods into our retail channels. For more information on our charge-backs
and RTV policies, please refer to the charge-backs section of this manual.

All correspondence should be sent to: VendorCompliance@dxlg.com

1. Merchandise Quality Standards

Classification of Defects:

Three defect classifications (critical, major and minor) have been selected that will
be used to classify types of defects (refer to appendix 4). Only critical and major
defects will be considered when applying the sampling plan. The defect descriptions
follow:

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Critical:
Any defect or feature of the product that may pose a safety hazard to the consumer or end
user. Zero tolerance will be applied to the acceptable quantity of critical defects found
within a shipment.

Major:
Any defect that adversely affects the appearance or performance of a product, including
fit or customer satisfaction. Any defect that is likely to reduce materially the usefulness
of the product, or is likely to result in failure, is also a major defect. The consumer would
normally be unwilling to accept such a defect, resulting in a return or complaint. Any
major defects must be corrected and re-inspected before shipment leaves factory floor.

Minor:
Any variation from the standard that is not sufficient in degree to be classified as major,
and would not provide a discerning customer with justification for return or complaint.
The defect would not materially reduce the usefulness of the product, nor is it likely to
result in failure. Minor defects are not considered in applying in the sampling plan.

Please refer to Appendix 4 for Defect Terms and Classifications

Location of Defects:
The location of a defect is important in determining its classification (i.e., major or
minor). Two defect zones (A and B) have been selected for all merchandise categories.
Zone A: Identified as a zone where the visual appearance of the garment is of
major importance. i.e., center front, center back, top of sleeves
Zone B: Identified as a zone where the visual appearance of the garment is
important but only of minor importance. i.e., lower hem, underarm, under-
sleeves, sides of the body.
Please see sample sketches of location of defects at the end of this chapter

2. Sampling Plan Parameters:

Lot Size
The lot size is the amount received in one purchase order from the vendor. The lot
can include all colors and sizes from one style received from the vendor in the
purchase order. Sampling plan is based on each purchase order

Use of Sub-Lots
When necessary, additional information deemed may be needed concerning part of
the total lot. A sub-lot consisting of a separate color of a SKU within the lot, or even a
separate size, may be selected for inspection. In these cases, a sub-lot (i.e., one color
or one size) may be accepted even though the rest of the main lot is to be rejected. It
is also possible to fail a sub-lot, though the rest of the main lot is accepted.

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 3. Inspection Definition

Normal Inspection
Quantities will be used for inspection of original shipments from any vendor. Normal
inspection will also be used when a vendor changes place of production, materially alters
the product, or an extended period of time (4 months or longer) elapses between receipts.
Refer to the AQL Plans Appendix 1.

Tightened Special Inspection

Quantities (larger number of items inspected) will be used after two consecutive shipments
of an item from a vendor have failed normal inspection. When tightened inspection is in
effect, normal inspection will be instituted after two consecutive shipments of an item from
a vendor have been accepted. (refer to Appendix 2)

Reduced Inspection
Reduced Inspection will only take place under the DXLG facilities. Quantities (smaller
number of items inspected) will be used after five consecutive shipments of an item from a
vendor have been accepted under normal inspection. When reduced inspection is in effect,
normal inspection will be instituted after a single shipment of an item from a vendor has
been rejected. Please refer to Appendix 3 for reduced inspection plan.

Reworked Lots
All reworked lots or sub-lots must be inspected 100% by either the vendor, DXLG or by
third party of our choice. All fees and inspection charges will be charged back to vendor.
All defective units must be repaired, cleaned or corrected or cannot be included in a
reworked lot. All reworked lots will be inspected by DXLG in the same manner as the
original lots.

Compliance (Package & Label) Inspection

To ensure inventory accuracy, we require a separate inspection procedure on packaging
and labeling (stickers, tickets, jokers, PIDs, UCC128, size labels) based on our normal
single sampling plan, audit level III. Please refer to Appendix 2
There is zero tolerance on inaccurate packing and labeling, the shipment will be
rejected if any single carton fails inspection.

Fabric Inspection: Bulk fabric quality inspection should be performed at mill level. Fabric
inspection reports must be submitted to DXLG and written approvals must be received
from DXLG prior to cutting bulk fabrics.

In-Line (During production) audits to be performed for each operation by factory/agent

QA. DXLG may request in line inspection reports periodically.

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 Final Random Inspections (FRI) are performed to assure all units shipped are first
quality merchandise, packaged, packed and shipped in full compliance with
requirements. FRI should be conducted when 100% of goods are produced and packed.
All FRIs must be performed for each individual style and PO; it is no longer acceptable to
perform final random inspections for same style across multiple POs. FRIs cannot consist
of multiple styles.

For agents: FRI and Compliance inspection reports must be sent to DXLs attention at
least 72 hours before shipment departs.

For direct vendors/factories: All new direct vendors and factories must use Bureau
Veritas for final random inspection on all DXL private label merchandise. Bureau Veritas
inspection services require a 2 week advance booking from your ex-factory date. FRI and
Compliance Inspection reports must be approved by DXL 72 hours before shipments exit
factory.

Appendix 1. AQL Normal Inspection Plan

AQL (Single Sampling Plan for Normal Inspection)

Sample Size at General Major 2.5 Minor 4.0
Lot or Batch Size Inspection Level II Ac Re Ac Re
91 to 150 20 1 2 2 3
151 to 280 32 2 3 3 4
281 to 500 50 3 4 5 6
501 to 1,200 80 5 6 7 8
1,201 to 3,200 125 7 8 10 11
3,201 to 10,000 200 10 11 14 15
10,001 to 35,000 315 14 15 21 22

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 Appendix 2. AQL Tightened Inspection Plan

AQL (Single Sampling Plan for Normal Inspection)

Sample Size at General Major 1.5 Minor 2.5

Lot or Batch Size Inspection Level III Ac Re Ac Re
91 to 150 32 1 2 2 3
151 to 280 50 2 3 3 4
281 to 500 80 3 4 5 6
501 to 1,200 125 5 6 7 8
1,201 to 3,200 200 7 8 10 11
3,201 to 10,000 315 10 11 14 15
10,001 to 35,000 500 14 15 21 22

Appendix 3. AQL Reduced Inspection Plan

AQL (Single Sampling Plan for Normal Inspection)

Sample Size at General Major 2.5 Minor 4.0

Lot or Batch Size Inspection Level I Ac Re Ac Re
91 to 150 8 1 2 1 2
151 to 280 13 1 2 1 2
281 to 500 20 1 2 2 3
501 to 1,200 32 2 3 3 4
1,201 to 3,200 50 3 4 5 6
3,201 to 10,000 80 5 6 7 8
10,001 to 35,000 125 7 8 10 11

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 QUALITY ASSURANCE POLICY
Testing Policy

DXLG believes that quality must be built into the product. The purpose of testing is to
assess, achieve and meet our customers satisfaction and expectations. Test result
confirms 1) Government Compliance and Regulations, 2) DXLs quality expectations are
met. To achieve this goal we have developed fabric, component and garment test
specifications and guidelines that our vendors/factories have the responsibility to achieve,
maintain and to ensure the consistency of product performance. This focus is part of our
ongoing process to continuously improve product quality. Our nominated exclusive
testing laboratory service is Bureau Veritas and please refer to Chapter 6 Product
Testing Program for lab information, guidelines, specifications and costs.

Fabric Testing

Pre-production / Development stage - Fabrics must go through our

specification testing during development stage to verify the proper finishes,
performance and requirements.

Production Fabric Stage - All bulk fabrics testing should occur as soon as the
fabric is correct for construction, color and finish. Testing should be planned
accordingly so it will not delay bulk garment cutting and sewing. Fabric tests
will help determine the primary care label instruction for the garment. Fabric
lab reports must be sent to Quality Assurance Manager within 24-48 hours
after testing. Bulk fabrics must not be cut until a written approval is issued by
DXLG.

Solid color fabrics - Full fabric test should be done on the first available
production colorway. Other colorways are tested as Additional Colorways
by abbreviated protocols.

Pattern fabrics Each different pattern weave requires a full fabric test in yard
dye and piece dye.

Color blocked garments fabrics must be tested for color fastness and
crocking in the form of a color blocked mock up.

Core and E3 Replenishment Programs any core and repeat fabrics should be
tested every 6 months in all colors.

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Component Testing (trim, buttons, zippers, drawcords, special tapes, shanks, grommets,
notions, elastic etc.)

DXL Group requires component testing prior to the vendors commitment to

purchase. See Component testing protocols for standards.

Zippers our preferred supplier is YKK. Local manufacturing brands will only be
accepted based an approved test result from Bureau Veritas. Vendors must obtain a
written approval from DXL prior to purchasing non YKK zippers.
New programs must carry out component tests during development. Core repeat
programs must test all components every 6 months or when deemed necessary due to
change of suppliers.

Garment Testing

Garment testing is carried out to ensure the fabric, components and garment
construction are compatible and meets DXLs quality standard and requirements. This is
to assess and verify the garment performance and its care instructions. All garment
testing reports must be sent to our QA department within 24-48 hours after testing. Any
deviation or concerns from the test result must be addresses with our QA and Testing
inspectors immediately. Bulk production cannot proceed without DXLs review and
approval.

All production styles have to be garment tested as soon as bulk fabric, trims and
labels becomes available to factory. At times, we may require garment testing during
the sampling stage to verify its performance and functionality.

For any programs with washing or property performance, testing should be conducted
on actual garment with the actual fabric, trims, labels, properties applied, treated and
or washed. Vendor/agent is responsible to notify labs about end-use of the garment
and destination country (e.g. USA, EU) to ensure that proper testing is performed
according to country regulations and requirements. .

Repeat styles have to be re-tested every 6 months if produced by the same factory.
Any change of fabric mill, trim, label suppliers and or factories/ will require
immediate full testing.

Sweaters testing

Full testing for sweaters should be done in garment form by style.

Additional colorways can be tested for colorfastness in knit-down panels.

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DXL Group reserves the rights to reject shipment if the testing program was not
followed or test results were not accepted.

Agent / Factory Responsibility

- Agent/factory is responsible for ensuring there is a QA & QC process in place, in

line with DXL Group requirements. At the beginning of each seasons
development, agent/factory must review all style development specifics on
fabrics, trims and fit in order to set a plan for all testing and assurance protocols.

- Agent/factory is responsible for arranging testing and inspection based on time

and action calendar to avoid any production delay. Any special claims on
performance on special fabrics and garments must be clearly defined at the time
of testing.

Fabric Inspection must be performed at the mill. Fabric inspection and test
reports are required and must be approved by DXLG prior to bulk garment
production.

New factory direct vendors must use Bureau Veritas as our exclusive nominated
inspection service. All inspection reports must be approved by DXLG before
shipment. Please contact our QA department for Bureau Veritas inspection
instructions.

- Vendor is responsible for all third party lab tests and inspection charges are to be
paid directly to our nominated testing facilities.

- Inbound QC inspection failure when a shipment is deemed unacceptable by our

Distribution Center Inbound QC based on quality, measurement, or product

labeling and packaging integrity; vendor is responsible for all charges related to
the re-work project, including but not limited to internal DC charges,
transportation to and from 3rd party, 3rd party re-work charges, and cost of
damaged goods including freight and duty (LDP cost) and loss of sales DXLG is
not responsible for any import duty refund. Return to Vendor goods will be
charged back at full Landed Duty Paid term. All charges related to rework will be
deducted from the actual PO or the next open invoice.

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Fabric Inspection

Fabric inspection must be carried out at the mill and/or at the factory facilities.
Inspection report must be approved by DXLG before cutting and sewing.

Standards for the Finished Fabrics - 4 Points System

Penalty points are assigned for each defect according to the length thereof as set forth in
the following table:

Size of Defects (length in inches) Number of Penalty Points

3 or less 1
Over 3 but less than 6 2
Over 6 but less than 9 3
Over 9 4

Note: a) no one yard should have more than 4 penalty points.

b) Any holes (2 or more broken ends) will be awarded 4 points.

c) Any running defect more than 4 continuous yards will cause the roll to be
rejected.

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Appendix 4. Defect Terms and Classification

Packing and Presentation Critical Major Minor

Missing size and care label X
Missing hang tag X
Missing price tickets, price stickers and PIDs X
Price tickets, price stickers and PIDs placed on wrong item X
Wrong UCC128 placement X
Wrong size ratio in pre pack cases X
Wrong SKUs mixed in single SKU cases X
Improper folding X
Soiled/Dirty/Unsealed poly bag X
QTY in case does not match QTY on UCC128 label X
PID applied in the wrong place on polybag X

General Critical Major Minor

Use of monofilament sewing thread that will hurt customers skin X
No warning clause on poly bag if require X
Any sharp point/sharp edge on accessories X
Infestation of live insect X
Not multi-language for fiber content, Country on Origin(7 X
languages) and by-lingual Care Instruction (French and English)
Not 5 care symbols on care label
Needle detected X
Mildew/mold X
Strong odor X
Wet X
Holes X
Stains X
Mending place X
Missing bar tack (at significant area if specified) X
Different lots of shade from garment to garment. NEED BUYER'S X
APPROVAL
Cleaning mark X
Shank pulls off during inspection pull test X

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Fabric Critical Major Minor
Fabric flaw / run more than 1/2" at obvious part of a garment X
Fabric flaw / run more than 1" at non-obvious part of a garment X
Hole (any size other than pinhole) X
Wrong or slanted grain line X
Pills on surface (depends on density) X X
Color shade difference within same garment X
Printing fault (depends on obviousness) X X
Barrenness on knitted fabric (depends on obviousness) X X
Permanent crease mark X
Different dye lots ( Needs buyer approval ) X

Accessories Critical Major Minor

Any missing accessory X
Dimension, color, art work or content not as specified X
Button inside out X
Button marking not removed X
Damaged button X
Rusted stud, snap, rivet, buckle, zipper, hook & bar, pins, clips X
Paint peel off on stud, snap and buckle X
Button and buttonhole not aligned causing bulge (depends on X X
obviousness)
Buttonhole too small to allow button to pass through X
Buttonhole too big X
Uncut / partially cut buttonhole X
Ragged edges at buttonhole X
Broken buttonhole stitches X
Button thread easily pulled out X
Wordings upside down on button / snap X X
Gap at zip top / end (depends on size) X X
Incomplete adhesive on interlining X
Illegible information on accessory X
Fusing bubbles/Wrinkled fuse on interlining X
Sparse embroidery X

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Workmanship and appearance
***Stitching and seams Critical Major Minor
Irregular stitch density X X
Loose / tight stitches X X
Crooked stitches (depends on size) X X
Skipped stitches X
Broken stitches X
Run-off stitches 1/4" (depends on size) X X
Blind stitching visible (depends on obviousness) X X
Needle cutting X
Exposed seam grin X
Insufficient seam allowance X X
Pleated seam X X
Seam slippage (If found on more than one garment - Critical) X X
Puckering seam (depends on obviousness) X X
Open seam (any size) X
Seam not fully opened before stitching X X
Exposed under ply seam (depends on obviousness) X X
Abrasion feed mark (depends on obviousness) X X
Uncut thread ends 1" or more X
***Assembling Critical Major Minor
Mismatched stripes, checks or prints over 1/8" X
Asymmetrical collar (depends on obviousness) X X
Uneven collar point 1/4" X X
Facings pulling up X X
Uneven sleeve length 1/2" or more X
Uneven leg length 1/2" or more X
High/low pockets 1/4" or more X
Pocket not smooth / squared (depends on obviousness) X X
Pocket flap not centered over pocket 1/4" (depend on length) X X
Misaligned of cuff / neck 1/4" (depends on length) X X
Uneven hem line (depends on obviousness) X X
***Washing Critical Major Minor
Different shade lots NEED BUYERS APPROVAL X
Uneven washing effect X

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Streaky mark X
Pills / Hairy on garment surface (depends on density) X X
Broken collar / Cuff and Hem (depends on size) X X
Sand on garment surface X
Rocks inside pockets X
Different washing effect (if specified) NEED BUYERS X
APPROVAL PRIOR SHIPPING
***Pressing Critical Major Minor
Wrinkle (depends on obviousness) X X
Seam not fully pressed open - X
Crease mark (depends on seriousness) X X
Burn mark X
Water spot (depends on obviousness) X
Melt X
Glazed / Scorched mark (depends on obviousness) X X
Pleated press X X
Zip / button mark made by improper pressing X

Common defects in specific items

Shirt Critical Major Minor
Collar not symmetrical in size, shape or length (depends on size) X X
Exposed under collar at outside of top collar X
Foreign matter sewn inside the finished collar/yoke/cuff X
Open seam at collar points X
Interlining seen through X X
Flap points not fully turned out X

Jacket/Outerwear Critical Major Minor

Puckering seam at hood facing (depends on obviousness) X X
Front placket not down to hem 1/4" or more X
Uneven fullness at armhole X
Wrong way insertion of zip (if specified) X X
Snap easily pulled off X
Uneven or loose elasticity on rib/bottom X

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Loose quilting stitches X
Malfunctioning of buckle/snap/zipper X
Fabric easily torn at snap position X
A noticeable amount of down percolation on the lining X
Down leakage X
Exposed drill hole X
Incompatible interfacing causing cracking, puckering or bubbling X
Corresponding pockets horizontally uneven or misaligned 1/4" or X
more
Color yarn caught inside shell fabric but obviously seen from X
outside

Jeans Critical Major Minor

High-low waistband ends 1/4" or more X
Waistband corners not folded in right shape X
Inclined belt loops X
Mismatched belt loop color (depends on obviousness) X X
Pocket bag caught in tack X X
Missing bartack (at significant area if specified) X
Bulged fly (depends on obviousness) X X
Zip exposed when buttoned X
Rusted studs / rivets X
Twisted leg 1/2" or more X
Holes at hem after stone washing 1/4" or more X

Knitted T-Shirt Critical Major Minor

Neck opening / collar not symmetrical X
Asymmetric body shape X
Twisted body at side seam 1/2" or more X
Twisted/slanted/curved/pleated placket (depends on obviousness) X X
Exposed row edge at cuff/hem (depends on obviousness) X X
Twisted seam at cuff / bottom (depends on obviousness) X X
Untrimmed seam allowance at inside hem (inside garment) X
Mismatched rib color (depends on obviousness) X

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Mismatched stripes / checks at shoulder / side seam 1/8" or above X X
(depends on size)
Neck opening too small (if found in more than 1 garment - Critical) X X
Neck opening too big X

Sweater Critical Major Minor

Wrong knitting pattern X X
Barre X
Thin/thick place X
Single yarn (depending on seriousness) X X
Slub yarn X
Split yarn X
Yarn run X X
Knots (depending on size and frequency) X X
Hole (other than normal loop hole) X
Dirty yarn X X
Dropped stitches X
Garment weight below specification 1/2 lb or above X
Neck / opening too small (if found in more than 1 garment - X X
Critical)
Twisted sleeve 1/2" or more X
Twisted body 1/2" or more at side seam X
Shoulder seam / side seam / underarm seam shown at front X
High/low placket 1/4" on bottom X
Zigzag seaming at armhole X
Facing exposed at placket X
Harsh hand feel X
Melt or excessive wash X X
Spirally (10o or more) X
Loose linking X
Untrimmed seaming thread X
Tight/Insecure seam end at cuff/hem X
Different color of seaming yarn X X
Glazed or scorched press at seam X X
Flat press at cable X X

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Shiny press at seaming X X
Less elastic at rib cuff/hem X X
Irremovable crease line X
Pull-out loop X

Leather Garments Critical Major Minor

Color shade difference within same garment X
Needle cutting X
Scratch/surgery/brand/burnt/paint/cut/stretch mark X
Glue/hammer mark X X
Belly/marbled/drawn/discolored grain X X
Dead fold mark/setting out pleats X
Without silica gel pack or no warning clause on it X
Variation in skin thickness across the garment X
Weak adhesion X
Loose hair on fur X
Pencil mark X X
Button mark X
Hanger mark X X
Scattered leather X
Grain break/peeling/wrinkles/cracks X
Pinholes X
Score X
Brine draw X
Salt pits X
Large hair follicle holes in pig split affecting appearance X
Blood stain (if found in more than 1 garment - Critical) X X

PVC Garments Critical Major Minor

Fold mark (depending on seriousness) X X
PVC torn at button X
PVC adhesion X
Needle damaged X

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Socks Critical Major Minor
Uncut thread end X
Strings joining diamonds less than 1-1/4 inch X
Waviness at toe seam X
Pattern / embroidery deviated from center X
Misplated X
Twisted grain / ribs ( inch) X
Uneven toe X X
Open seam at heel gore X
Pilling X
Barre X X
Uneven sock length (max. 1/4 inch within the pair) X X
Uneven sock length (max. inch from pair to pair) X X
Uneven Top width (max. 1/8 inch within the pair) X X
Uneven Top width (max. inch from pair to pair) X X
Spot X
Hole X
Wrong hook direction X
Misprint / invisible print on capper X
Sticker placement not centered (1/4 inch) X

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