TL 9000 Quality System Overview

1. TL 9000 Quality System Overview Michael Boyd

2. The TL 9000 Quality System Model • TL 9000 has all of the elements of ISO 9001, but with added • Focus on product testing and quality • Focus on customer services & relationships • Focus on defined measurements (Benchmarking) Goal of Improving HW/SW Products and Services for the Telecommunications Industry Product Lifecycle Model Quality Improvement Customer and Supplier Input Management Review

3. Bests Practices – People, Processes, Systems iDirect is structured on the TL 9000 Quality System Customers Suppliers

4. Vision & Results for Implementing TL 9000

5. TL 9000 Companies • Best-in-class companies who have adopted the TL 9000 QMS • EquipmentProviders: Motorola, Alcatel, Cisco, Juniper, Lucent, Nortel, Ciena, NTT, Siemens, Tellabs, Unisys • Manufacturers: Corning, Huawei, Intel, JDSU, Xilinx • Carriers: Verizon, AT&T, BellSouth, British Telecom • Standards: TUV, Telcordia, UL

6. Our Competition • ViaSat – ISO 9001 Certified • Hughes Networking Systems – ISO 9001 Certified • No other competition has a certified quality system • iDirect will have both the ISO 9001 and TL 9000-H,V Certifications

7. iDirect’s TL 9000 Quality Management System Scope iDirect Operations ISO 9001:2000 and TL 9000-H,V • Satellite Systems Manufacturing and Test • Customer Support Service • Repair Service • Training • Installation

8. TL 9000What We’ve Accomplished • Systems Implementation • Remedy – Customer/Product Technical Issue Tracking • Agile – Product Lifecycle; Documentation, Product BOM Control • Oracle – Order & Inventory Management; Financials • Measurements System • Tracking TL 9000 Measurements • Tracking company KPI Measurements through on-line reports • Send monthly performance reports to iSupport customers • Process Documentation • >60 documents to support the ISO 9001/TL 9000 requirements • New Product Introduction • X-functional meetings • Design & Requirements Reviews • Improved Validation Testing • Added ‘TAC Validation’ step for new SW/HW releases • 1st Article Quality Inspection, prior to first customer shipment (FCS) • Tech Pubs customer-facing documentation review • 8D Corrective Action Process • Formal Root Cause-Closed Loop Corrective Action Process – Agile

9. TL 9000What We’ve Accomplished • Internal Audit Program • We continually assess our own internal people, processes, and systems and make corrective change, where needed. • Technical Out of Box Audit Inspections • Continually sample new inventory for quality compliance. • Customer Support Processes • World-Class TAC for technical call center support, network upgrades • Leveraging Remedy for Customer web-based requests, issue escalation & tracking • SLA control & measurement in Remedy to support “iSupport Program” • Automated customer feedback via Remedy emails, customer satisfaction, & crystal reports • RMA Process • Refined process leveraging Remedy (customer & supplier input) • Reduced RMA MTTR measure from 4-6 months to 12 days

10. TL 9000What We’ve Accomplished • Global Field Services & Support • Documented and integrated programs and processes, that are measureable • Customer hub installations, program management, training, technical pubs • Manufacturing and Test • Documented and integrated set of processes for controlling product mfg that includes: Planning, Purchasing, Manufacturing, Test, Quality, and Logistics • Our Contract MFG (Plexus) is integrated within iDirect’s processes and systems • Contract MFG are monitored, measured, and audited • Product BOM & Documentation Revision Control • Contract MFG are tied directly into our Agile system  change efficiency • Single-source of the truth in the Agile system

11. Quality

12. Quality Policy

13. Design for Quality – Product Lifecycle

14. Agile: Quality Management • Issues • Deviations • 8D Corrective Actions • Stop Ships • The processes above are managed in Agile through Review & Signoff • Each can be associated to any item (Part or Document) in the Agile system

15. 8D Corrective Action Process • Formalized process of problem resolution (Agile – 8D CAR) • 8D (8 Gate methodology) • Problem Definition • Problem Measurement (Impact in %, $) • Containment (Stop Ship, Inspection & Sort) • Root Cause (Product/Process Investigation Cause(s)) • Corrective Change (Rework or Replacement) • Preventive Action (Process Improvement/Control) • Monitor (Satistical Process Control-SPC, Audit) • Summary (team congratulations, post mortem)

16. Quality Improvement Program • DOA Reduction • Out of Box Audit (OOBA) • Sampled inspection on FGI (warehouse goods) • Customer Satisfaction • TAC Service • RMA Service • Training Service • Component Replacement Reduction • Flash (U118)

17. Supplier Quality • Supplier Qualification • Questionnaire • Audit • Qualification Build & Review • Manufacturer Quality Plan • Documented Plan in Agile • Manufacturing Quality Report • Bi-weekly yield and issue reports • Manufacturer Performance • Metrics: Supplier Scorecard

18. 2008 Operations Performance Review Michael Boyd

19. Enterprise Performance Measurements (ePM)Dashboard Current as of 7/7/08 9 AM est

20. Customer Satisfaction • 3 key surveys • Also, track Training Satisfaction • http://idirectweb/qms/Reports/overall%20cust%20sat%20rating.pdf

21. Customer SatisfactionGoal = 89

22. Customer Training Satisfaction

23. On Time DeliveryGoal = 98%

24. Service Level Agreement (SLA)Goal = 95%

25. RMA MTTRGoal =< 10 Days

26. iNFINITI Product Return RateGoal =< 1.0% • 2008 YTD = 0.20% • Early Return Index (ERI) = 0.31% (12/1/07 – 5/31/08) • 12 month Return Index = 0.60% (7/1/07 – 6/30/08) • Shipments: 34,610 • Returns: 206