IECQ presentation

Contents1. Mission of the IECQ System2. Organization3. Membership4. IECQ Schemes5. IECQ HSPM6. Current Status7. The Future© 2006 SBGi Corporation All Rights Reserved Page 3 of 31

MISSIONIECQ Mission The IECQ Mission is:To provide a business-to-business quality certification schemethat serves industry by creating real value in the supply anddemand chain.The IECQ provides its members with the tools to supply addedvalue to industry meeting market needs. IECQ accomplishes this by: providing comprehensive, world-wide assessment and certificationprograms that assess organizations, electronic components, associatedmaterials, and processes to defined IEC standards, IECQ recognizedspecifications and quality requirements. understanding the electronic components industry needs andestablishing internationally recognized assessment criteria. developing and administering training that supports the needs ofelectronic components industries and assessors.© 2006 SBGi Corporation All Rights Reserved Page 4 of 31

OrganizationOrganizationHow IECQ fits in the InternationalScheme of Standards Development andCertification?© 2006 SBGi Corporation All Rights Reserved Page 5 of 313

OrganizationISO / IEC OrganizationInternationalNational© 2006 SBGi Corporation All Rights Reserved Page 6 of 314

OrganizationIEC & IECQ StructureIECInternational Electrotechnical CommissionSupplies the global market with multilateral standardsand conformity assessment programs key to EEEinternational tradeIECEEIECQIECEXIEC Quality Assessment for ElectronicComponentsConformity assessment and product certification armfor electronic components, processes and materialsNAI NAI CNCASI SI SI CEPREINational Authorized Institute (NAI)The NAI of the IECQ manages the system in theirrespective countriesChina National ……The China counterpart to the NAIsSupervising InspectorateResponsible for the assessments, determination ofcompliance and surveillance of manufacturers, etc.© 2006 SBGi Corporation All Rights Reserved Page 7 of 31

MembershipIECQ Participating Countries Austria China Denmark Finland France Germany India Japan Korea Norway Russian Federation Serbia andMontenegro Switzerland Thailand United Kingdom USA© 2006 SBGi Corporation All Rights Reserved Page 8 of 31 5

MembershipIECQ Supervising Inspectorates1. OVE Testing & Certification2. CEPREI3. LCIE-BV4. VDE Testing & CertificationInstitute5. STQC Certification Services6. RCJ7. KTL8. ROSTECHREGULIROVANIE9. BSI-PS10. DNV Certification11. NSAI Inc.12. SGS US Testing CompanyInc.13. Underwriters Laboratory14. Intertek15. STR-R16. TUV-SUDAdditional SIs are in the process of achieving IECQ SI accreditation© 2006 SBGi Corporation All Rights Reserved Page 9 of 31

SchemesIECQ Certifications OfferedNew IECQ SchemesHazardous Substances Process ManagementApprovalQC 080000 IECQ HSPMAvionics Approval – Electronic ComponentManagement Plan (ECMP, IEC/TS 62239)Traditional IECQ Schemes Manufacturer Approval Distributor Approval Testing Laboratory Approval Qualification Approval Capability Approval Specialist ContractorApproval Technology Approval© 2006 SBGi Corporation All Rights Reserved Page 10 of 31

What is QC 080000 IECQ HSPM? An internationally agreed-upon IECQ technicalspecification for certification by 3rd-party assessors that acompany’s processes to manage, minimize and/oreliminate hazardous substances meet the higheststandards Incorporates as applicable RoHS, WEEE, SB-50,green process, etc and the principles of a QMS Developed originally from the US standard EIA/ECCB-954 On target to become an industry standard within thenext 1-1.5 years© 2006 SBGi Corporation All Rights Reserved Page 11 of 31

What is QC 080000 IECQ HSPM?Based on belief that achievement of HSFproducts & production processes cannotbe realized without effective integrationof management disciplinesSolution must be process-basedDesigned to solved the problem that youcan’t “test in” HSF© 2006 SBGi Corporation All Rights Reserved Page 12 of 31

What is QC 080000 IECQ HSPM?Comprehensive in scopeManagement of all HS processesRegardless of HSF requirements a company istrying to meetDesigned to satisfy company HSFrequirements and country HSF regulatoryrequirementsWill reduce or replace government compliancetesting and numerous company-specific audits© 2006 SBGi Corporation All Rights Reserved Page 13 of 31

IECQ HSPM Strengthens ISO 9001: 2000 IECQ HPSM is a supplement to the ISO 9001:2000 QualityManagement System (QMS) framework for the comprehensiveand systematic management and control of processespursuant to HSF goals ISO 9001 provides a blueprint for optimization of business andquality management systems IECQ HSPM was written to fit into that blueprint IECQ HSPM strengthens adherence to the principles andpractices prescribed by the International Organization ofStandardization (ISO) and directs their application to themanagement of hazardous substances© 2006 SBGi Corporation All Rights Reserved Page 14 of 31

Key Contributors toQC 080000 IECQ HSPMCreated By‣Original Contributing Companies The Boeing Company Northrop-Grumman Honeywell Philips Semiconductor Rockwell-Collins GE BAE Systems Control Avnet QinetiQ Technology Electronic IndustryAlliance (EIA) OmniCell© 2006 SBGi Corporation All Rights Reserved Page 15 of 31

Created ByBased On Key Industry ProgramsQC 080000 IECQ HSPM development wasbased on established Industry RequirementsSony Green ProcessRicoh Green ProcessHP Green ProcessMotorola Green ProcessJapan Green Procurement SurveyStandardization Initiative© 2006 SBGi Corporation All Rights Reserved Page 16 of 31

Sections of QC 080000 IECQ HSPM0 Introduction1 Scope2 Normative References3 Terms and Definitions4 Quality Management System5 Management Responsibility6 Resource Management7 Product Realization8 Measurement, Analysis and Improvement© 2006 SBGi Corporation All Rights Reserved Page 17 of 31

QC 080000 IECQ HSPM Process ApproachKeep these things in mind as we discuss theQC 080000 IECQ HSPM specificationCompliance and/or certification with a currentQMS standard implies a company is familiar withthe process managementFor QC 08000 IECQ HSPM implementation andassessment, attention should focus on thetechnical aspects of the processes and thelinking of activitiesIt is important to understand that QC 080000 IECQHSPM focuses on the technical aspects ofcompliance© 2006 SBGi Corporation All Rights Reserved Page 18 of 31

QC 080000 IECQ HSPM 4: Quality ManagementSystem This section includeskey elements of thestandard. Describes specific procedures,documentation, & processmanagement practicesnecessary to achieve HSFproduct and processes thatshall be included in the QMS(4.1.1 & 4.2.1). These will bediscussed next. Covers Outsourcing--Anyoutsourced process that affectsa company’s HSF productsshall be managed andcontrolled by the company(4.1.3)© 2006 SBGi Corporation All Rights Reserved Page 19 of 31

QC 080000 IECQ HSPM 5: ManagementResponsibility Without clear andconsistent support andguidance from topmanagement, acompany’s attempt atHSF products andprocesses will fail ManagementCommitment (5.1) Customer Focus (5.2) HSF Policy (5.3) Planning (5.4) Responsibility, Authorityand Communication (5.5) Management Review(5.6)© 2006 SBGi Corporation All Rights Reserved Page 20 of 31

QC 080000 IECQ HSPM 6: Resource Management Resource managementin an HSF environmentrequires the addition oftechnical knowledgeof HS to the QMSrequirements In general, theorganization shalldetermine, provide andmaintain the human andinfrastructure resourcesneeded to implement andmaintain HSFprocesses/products (6.1,6.3) The specifics required forhuman resources arecovered in more detailunder section 6.2© 2006 SBGi Corporation All Rights Reserved Page 21 of 31

QC 080000 IECQ HSPM 7: Product Realization The organization shallplan and develop theprocesses needed forHSF productionrealization For any manufacturer ofcomponents withhazardous substances,this is where the realwork of implementationlies Planning of HSF Process &Product Realization (7.1) Customer-Related Process(7.2) Design & Development (7.3) Purchasing of HSF Products(7.4) Production & ServiceProvision (7.5) Control of Monitoring &Measuring Devices Used inHSF Processes (7.6)© 2006 SBGi Corporation All Rights Reserved Page 22 of 31

QC 080000 IECQ HSPM 8: Measurement,Analysis &Improvement The organization shallplan and implement themonitoring,measurement, analysis& improvementprocesses needed todemonstrate conformityto HSF requirements Monitoring &Measurement of HSFProcesses (8.2) Control of NonconformingHSF Product (8.3) Analysis of HSF Data(8.4) Improvement of HSFProcess ManagementSystem (8.5)© 2006 SBGi Corporation All Rights Reserved Page 23 of 31

Current StatusStatus of QC 080000 IECQ HSPM Interest in IECQ HSPM is Growing Daily Companies find that QC 080000 is a common senseway to demonstrate Green Process ManagementSystems, and compliance with RoHS & WEEE More than 3000 individuals have been trained inIECQ HSPM worldwide As of July 2006, More than 25 companies hold IECQ HSPM Certification More than 100 companies have applications in progress Projections are 200 to 300 company certifications 2006© 2006 SBGi Corporation All Rights Reserved Page 24 of 31

Program Updates (cont) Training Certificates Issued 2006 Implementation ~102 Internal and Lead Assessor ~290 Awareness Seminars China Korea Taiwan Hong Kong Singapore USA~3000 people~1000 People~3000 People~1000 People~500 People~250 People© 2006 SBGi Corporation All Rights Reserved Page 25 of 31

Program Updates (cont)IECQ HSPM Issued CertificatesWorldwide 51•Taiwan 21• China 24• Hong Kong 02• Canada 01•USA 01• Korea 01• Singapore 01© 2006 SBGi Corporation All Rights Reserved Page 26 of 31

Current StatusChina Companies Leading the WayIECQ HSPM RoHS Compliance HUIZHOU TCL HYPERPOWER BATTERIES INC. Tongfu Rd., Longjin, Shuikou Town, Huicheng District, Huizhou,Guangdong, ChinaIECQ HSPM Green Process Management with RoHS and WEEE CHA'S ELECTRONIC INDUSTRIES (SHENZHEN) CO., LTD. 16 Li Xin Road, Dan Zhu Tou Industrial District Bu Ji, Shenzhen,Guangdong China© 2006 SBGi Corporation All Rights Reserved Page 27 of 31

Current StatusWorldwide Certification The First 8 registered companies SigmaTel (USA) Solnet Metal Technologies (Chinese Taipei) Deltron Electronics (FRA) Fook Tin (Hong Kong) CHA'S ELECTRONIC INDUSTRIES– PR China Huizhou TCL Hyperpower Batteries Inc. – PR China Gigabyte (Chinese Taipei) DOTOP (Chinese Taipei)© 2006 SBGi Corporation All Rights Reserved Page 28 of 31

Current StatusHuizhou TCLHyperpowerBatteries IncThe first BatteryManufacture in the worldto be certified to IECQHSPM© 2006 SBGi Corporation All Rights Reserved Page 29 of 31

Current StatusCha’s ElectronicIndustriesThe first company in theworld to achieve IECQHSPM Green ProcessCertification© 2006 SBGi Corporation All Rights Reserved Page 30 of 31

IECQ HSPM Receives Recommendation The ECCB Recommendation April 7, 2006 Based on the results of the ECCB IECQ HSPM PilotProgram conducted with industry representativesand direct support of LCIE and the initial indirectsupport from VDE and CEPREI, the ECCBrecommends that the IECQ MC support the adoptionof the IECQ HSPM certification scheme worldwide.© 2006 SBGi Corporation All Rights Reserved Page 31 of 31

Late Breaking News HP and Apple's toxic laptops exposed18 September 2006 Some of the best-known laptops are contaminated with some of theworst toxic chemicals. Of the five top brands we tested Hewlett-Packard and Apple laptops showed the worst contamination levels. An independent Danish laboratory tested for the presence of severaltoxic chemicals, including brominated flame retardants (BFRs),polyvinyl chloride plastic (PVC), and even lead, in brand new laptopsfrom five of the world's leading manufacturers (Acer, Apple, Dell, HP,Sony). HP and Apple laptops contained the highest levels ofcontamination. We have been pressuring leading electronic companies to ditch toxicchemicals in favour of safer alternatives. The laptop tests reveal ifthe top companies are matching nice green words with real action.© 2006 SBGi Corporation All Rights Reserved Page 32 of 31

Late Breaking News Chemical lies? Results for HP revealed high levels of a number of chemicals inits components, in particular the highest levels by far of PBDEs(a class of Brominated Fire Retardants) including somethingcalled decaBDE. HP's website claims it removed decaBDE fromits products years ago. Either HP is lying or HP needs to ask its suppliers some toughquestions. Lead was also found in the soldering. HP has been downgraded due to these results on our Guide toGreener Electronics. The guide ranks PC and mobilecompanies on their chemical and waste policies and practices.HP was third but has slipped to sixth position, with 4.7 out of 10,down from 5.7.© 2006 SBGi Corporation All Rights Reserved Page 33 of 31

Late Breaking News Poison Apples Apple has recently launched its new range of MacBooks, butwhat you also get with a new MacBook is the highest level ofanother type of toxic flame retardant, tetrabromobisphenol A.Apple claims it is looking for alternatives but for now it appearsto be using far more of this toxic chemical than its competitors. Dr. Kevin Brigden, of the Greenpeace Science Unit, was alarmedby the results: "During the sampling process it was remarkableto note that, whether Mac or PC, once you by-pass the sleek andcool design of these computers, hazardous substances are acomponent common to all."© 2006 SBGi Corporation All Rights Reserved Page 34 of 31

IECQ HSPM Certification Benefits IECQ HSPM Certification demonstrates to regulators thata manufacturer's HS and HSF processes are controlled Companies that can manufacture according to the IECQ HSPMstandard receive a certificate as proof Tells the global marketplace that you have theprocesses in place to properly manage yourproducts for HSF Assures access to global markets and createscompetitive advantage Assures compliance with laws and highest industrystandards Saves Money! Reduces Costs! Often replaces lengthy surveys from customers Reduces testing requirements© 2006 SBGi Corporation All Rights Reserved Page 35 of 31

Stanley H. Salot Jr.Stan.Salot@ECCB.ORG© 2006 SBGi Corporation All Rights Reserved Page 36 of 31