SA8000: Overtime & Lead Time
Q & A with SAI Lead Trainer Sanjiv Singh
Question: How do auditors determine whether or not suppliers are given adequate time to complete purchase orders based on their capacity? Is this indicated via high instances of overtime?
Sanjiv Singh: To determine why overtime is high, auditors should go back and determine turn around times for a particular product once an order has been placed. Sourcing, design and quality assurance departments have a fair idea of how long it will take a particular factory to turn around goods - they book their order based on this fact and the reliability in delivering on time is an important factor.
When overtime is high it will be important for an auditor to delve back and note a few factors:
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