Rocio Floral Group, Inc.

Quality Systems Manual

Document # QSM-1 Page: 3 of 24

Revision date: 10-18-2002 Revision # 2

QUALITY SYSTEMS MANUAL

Rocio Floral Group, Inc.

105 Cut Rose Terrace

Atlanta, GA 30332

Phone: (404) 237-ROSE

Fax: (404) 237-4455

Authorized by:

Mrs. Rocio Sanchez DeLazio

President & CEO

1.0 INTRODUCTION & PROCESS DIAGRAM

The Rocio Floral Group, Inc., was founded in 1989 by Mrs. Rocio Sanchez DeLazio as a rolling flower cart serving the Buckhead neighborhood of Atlanta, Georgia. Customers came to recognize the quality and value of Mrs. DeLazio’s flowers, and the demand for her flowers soon outstripped her ability to serve customers from a cart. In 1991, Mrs. DeLazio opened her first retail location, a small flower shop named Rocio’s Floral Boutique on the corner Peachtree Tangle Circle and South Weiuca. A second shop, located in Midtown, was added in 1994. In 1996, Mrs. DeLazio oversaw the development of a flower plantation in Roswell, north of Atlanta. The company went public in 1997 and changed its name to The Rocio Floral Group. Today the company operates 3 retail floral boutiques in the Atlanta area and a 50 acre growing plantation. Revenues topped $5 million for the last fiscal year, which accounted for a 15% increase from the year before.

The Company is structured into three divisions:

ü Retail Division: The Retail Division is comprised of the three retail shops, and the sales and customer service functions residing within each.

ü Growing Division: This includes all agricultural functions, administration, flower arrangement design labs, purchasing, and strategic planning.

ü Delivery & Transportation Division: This includes a small fleet of refrigerated vans that carry flower products from the Growing Division to the retail shops, and from the retail shops to customer locations, when requested.

Please also refer to Appendices A & B, located at the end of this manual, for additional information related to the organization.

The general sequence and interaction of processes included within the quality management system is shown below:

The Rocio Floral Group manages these processes in accordance with the requirements of ANSI/ASQC Q9001:2000.

2.0 SCOPE AND EXCLUSIONS

This Quality Systems Manual describes the functioning of the formal quality system at Rocio Floral Group, Inc. The scope of the system includes all three divisions, and quality system registration is maintained under a single corporate certificate. We have adopted this quality model as the underlying structure of our program of continuous process improvement.

Two exclusions have been made to the QMS:

7.5.2 Validation of processes for production and service provision

7.5.4 Customer property

Validation of processes for production and service provision has been excluded because there are no processes that produce outcomes that we are not able to verify. All products verified at appropriate stages of the process and prior to delivery to customers.

Customer property has been excluded because the Rocio Floral Group does not, nor has it ever, used customer property in any way.

3.0 QUALITY POLICY

Quality Policy

Rocio Floral Group, Inc.

In the ongoing effort to better serve our many faithful customers, we are committed to the following principles:

v We will provide what we believe are the freshest and most beautiful flowers available;

v We will attempt to continually improve our products and services by setting aggressive goals for ourselves at all levels of our organization;

v We will always endeavor to provide the best overall value for our customers’ hard-earned dollars;

v We will treat our employees with respect and dignity.

Authorized by:

Mrs. Rocio Sanchez DeLazio

President & CEO

4.1 GENERAL REQUIREMENTS

The Rocio Floral Group has established, documented, implemented, maintains and continually improves its quality management system in accordance with the requirements of ANSI/ASQC Q9001:2000.

To implement the quality management system, we have done the following:

a) identified the processes needed for the quality management system (see section 1 of this manual);

b) determined the sequence and interaction of these processes (see section 1 of this manual);

c) determined criteria and methods required to ensure the effective operation and control of these processes;

d) ensured the availability of information necessary to support the operation and monitoring of these processes;

e) measured, monitored and analyzed these processes, and implemented action necessary to achieve planned results and continual improvement.

Where The Rocio Floral Group chooses to outsource any process that affects product conformity with requirements, we shall ensure control over such processes. Control of such outsourced processes shall be identified within our quality management system. Currently, no outsourcing takes place.

4.2 DOCUMENTATION REQUIREMENTS

4.2.1 General

The quality management system documentation includes:

a) documented statements of a quality policy and quality objectives,

b) a quality manual,

c) documented procedures required in ANSI/ASQ Q9001:2000

b) documents required by the Rocio Floral Group, Inc., to ensure the effective operation and control of our processes. These documents may include paper and electronic documentation.

e) records required by ANSI/ASQ Q9001:2000

The extent of our quality management system documentation was based on a number of factors, including following:

a) size and type of our organization;

b) complexity and interaction of our processes;

c) competence of our personnel.

4.2.2 Quality manual

Rocio Floral Group has established and maintains a quality manual that includes

a) the scope of the quality management system, including details of and justification for any exclusions (see section 2 of this manual);

b) the documented procedures established for the quality management system, or reference to them (see each section of this manual), and

c) a description of the interaction between the processes of the quality management system (see section 1 of this manual).

4.2.3 Control of documents

Documents required by the quality management system shall be controlled. Records are a special type of document and shall be controlled according to the requirements given in 4.2.4.

A documented procedure has been established to define the controls needed

a) to approve documents for adequacy prior to issue,

b) to review and update as necessary and re-approve documents,

c) to ensure that changes and the current revision status of documents are identified,

d) to ensure that relevant versions of applicable documents are available at points of use,

e) to ensure that documents remain legible and readily identifiable,

f) to ensure that documents of external origin are identified and their distribution controlled, and

g) to prevent the unintended use of obsolete documents, and to apply suitable identification to them if they are retained for any purpose.

P Document control is a centralized function carried out at the offices of the Growing Division.

& Refer to document# OP-5.5.6-1 for more information on control of documents.

4.2.4 Control of records

Records have been established and are maintained to provide evidence of conformity to requirements and of the effective operation of the quality management system. Records shall remain legible, readily identifiable and retrievable. A documented procedure has been established to define the controls needed for the identification, storage, protection,

retrieval, retention time and disposition of records.

& Refer to document# OP-5.5.7-1 for more information on control of quality records.

5. MANAGEMENT RESPONSIBILITY

NOTE: Top management at the Rocio Floral Group is defined as the President and CEO.

5.1 MANAGEMENT COMMITMENT

Top management of the Rocio Floral Group, led by the President & CEO, provides evidence of their commitment to the development and improvement of the quality

management system by:

a) communicating to the organization the importance of meeting customer as well as statutory and regulatory requirements,

b) establishing the quality policy,

c) ensuring that quality objectives are established,

d) conducting management reviews, and

e) ensuring the availability of necessary resources.

5.2 CUSTOMER FOCUS

Top management has ensured that customer requirements are determined and are met with the aim of enhancing customer satisfaction.

5.3 QUALITY POLICY

Top management of the Rocio Floral Group has developed a Quality Policy and ensured that it:

a) is appropriate to the purpose of the organization,

b) includes a commitment to comply with requirements and continually improve the effectiveness of the quality management system,

c) provides a framework for establishing and reviewing quality objectives,

d) is communicated and understood within the organization, and

e) is reviewed for continuing suitability.

The quality policy is shown in section 3 of this manual.

5.4 PLANNING

5.4.1 Quality Objectives

Top management has ensured that quality objectives, including those needed to meet requirements for product are established at relevant functions and levels within the organization. The quality objectives are measurable and consistent with the quality policy.

1Records of progress toward achievement of quality objectives are maintained within the departments at each respective division.

& Refer to document# OP-5.4.1-1 for more information on management of quality objectives.

5.4.2 Quality Planning

Top management has ensured that

a) the planning of the quality management system is carried out in order to meet the requirements given in 4.1, as well as the quality objectives, and

b) the integrity of the quality management system is maintained when changes to the quality management system are planned and implemented.

5.5 Responsibility, authority and communication

5.5.1 Responsibility and authority

Top management has ensured that responsibilities and authorities are defined and communicated within the organization.

5.5.2 Management representative

Top management has appointed a member of management who, irrespective of other responsibilities, shall have responsibility and authority that includes

a) ensuring that processes needed for the quality management system are established, implemented and maintained,

b) reporting to top management on the performance of the quality management system and any need for improvement, and

c) ensuring the promotion of awareness of customer requirements throughout the organization.

5.5.3 Internal communication

Top management shall ensure that appropriate communication processes are established within the organization and that communication takes place regarding the effectiveness of the quality management system.

Some of these communication media include (but are not limited to) the following: intranet pages, bulletin board postings, email messages, meetings, company events, newsletter articles, and memos.

5.6 MANAGEMENT REVIEW

5.6.1 General

Top management reviews the organization's quality management system, at planned intervals, to ensure its continuing suitability, adequacy and effectiveness. This review includes assessing opportunities for improvement and the need for changes to the quality management system, including the quality policy and quality objectives. Records from management reviews are maintained.

1Records of management review are maintained at the offices of the Growing Division.

& Refer to document# OP-5.6-1 for more information on management reviews.

5.6.2 Review input

The input to management review includes (at minimum) information on

a) results of audits,

b) customer feedback,

c) process performance and product conformity,

d) status of preventive and corrective actions,

e) follow-up actions from previous management reviews,

f) changes that could affect the quality management system, and

g) recommendations for improvement.

5.6.3 Review output

The output from the management review includes (at minimum) any decisions and actions related to

a) improvement of the effectiveness of the quality management system and its processes,

b) improvement of product related to customer requirements, and

c) resource needs.

6. RESOURCE MANAGEMENT

6.1. PROVISION OF RESOURCES

The organization has determine and provided the resources needed:

a) to implement and maintain the quality management system and continually improve its effectiveness, and

b) to enhance customer satisfaction by meeting customer requirements.

6.2 HUMAN RESOURCES

6.2.1 General

Personnel performing work affecting product quality shall be competent on the basis of appropriate education, training, skills and experience.

6.2.2 Competency, awareness, and training

The organization has

a) determined the necessary competence for personnel performing work affecting product quality,

b) provided training or take other actions to satisfy these needs,

c) evaluated the effectiveness of the actions taken,

d) ensured that its personnel are aware of the relevance and importance of their activities and how they contribute to the achievement of the quality objectives, and

e) maintained appropriate records of education, training, skills and experience (see 4.2.4).

1Records of education, experience, training and qualifications for all employees are maintained at the offices of the Growing Division.

& Refer to document# OP-6.2-1 for more information on the assignment of personnel, training, and competency.

6.3 INFRASTRUCTURE

The organization has determined, provided and maintained the infrastructure needed to achieve conformity to product requirements. Infrastructure includes, as applicable

a) buildings, workspace and associated utilities,

b) process equipment (both hardware and software), and

c) supporting services (such as transport or communication).

1Records of maintenance for all facilities and equipment are maintained at the offices of the Growing Division.

& Refer to document# OP-6.3-1 for more information on the maintenance of facilities and equipment.

6.4 WORK ENVIRONMENT

The organization shall determine and manage the work environment needed to achieve conformity to product requirements.

All retail shops and flower arrangement areas must be maintained within “comfortable” ambient air temperatures and relative humidities. Flower storage units at the Growing Division and retail shops must be maintained at 45 degrees F +/- 5 degrees. No other special provisions related to the work environment are required.

7 PRODUCT REALIZATION

7.1 PLANNING OF REALIZATION PROCESSES

The organization has planed and developed the processes needed for product realization. Planning of product realization is consistent with the requirements of the other processes of the quality management system (see 4.1).

In planning product realization, the organization has determined the following, as appropriate:

a) quality objectives and requirements for the product;

b) the need to establish processes, documents, and provide resources specific to the product;

c) required verification, validation, monitoring, inspection and test activities specific to the product and the criteria

for product acceptance;

d) records needed to provide evidence that the realization processes and resulting product meet requirements.

The output of this planning shall be in a form suitable for our organization's method of operations. At The Rocio Floral Group, the output of this planning are the documents and processes comprising the formal management system.

7.2. CUSTOMER-RELATED PROCESSES

7.2.1 Identification of customer requirements

The organization shall determine

a) requirements specified by the customer, including the requirements for delivery and post-delivery activities,

b) requirements not stated by the customer but necessary for specified or intended use, where known,

c) statutory and regulatory requirements related to the product, and

d) any additional requirements determined by the organization.

7.2.2 Review of product requirements

The organization shall review the requirements related to the product. This review shall be conducted prior to the organization's commitment to supply a product to the customer (e.g. submission of tenders, acceptance of contracts or orders, acceptance of changes to contracts or orders) and shall ensure that