SMC ISO Program

1. SMC ISO Program An overview of our very successful ISO program including some key quality metrics. A look at our NRTL relationships.

2. Presentation Outline • ISO-9001:2000 • The standard • History at Sierra Monitor Corporation • Use at Sierra Monitor Corporation • Some key metrics • Nationally Recognized Testing Laboratory (NRTL) • OSHA definition • At SMC • Panel Shop

3. The Standard • International Organization for Standardization (ISO) • ISO 9001:2000 represents a standard that covers parameters that, when in place, show evidence of a quality management system. • The purpose of the ISO quality standards, albeit very abstract, is to provide a means to document, implement, and illustrate/demonstrate a quality assurance program.

4. History – ISO at SMC

5. ISO QMS ISO-9001:2000 SMC Compliance

6. SMC Quality Policy • Your Highest Expectation Is Ours • Our philosophy of top-to-bottom quality management is embedded throughout the company. • Management Commitment

7. The SMC Way • Why are we registered? • Our QMS system was closely aligned with ISO 9001. Registration was a logical next step. • It encourages process improvement by the nature of ISO, which results in improved quality. • Customers request it, competitors are registered, and many markets require it. • It enhances business-to-business relationships, as ISO 9001 registered corporations have a level of competency on which to rely.

8. The SMC Way • Our overview of Important Quality Management System principles: • Management Commitment • The concept that our organization is a series of processes • Continuous improvement and monitoring • Documentation/Recordkeeping/Objective Evidence • Customer Focused

9. Management Review: Semiannual review of key metrics Delivery Cycle MSO Key Customers Customer Comments Repeat Customers FST Support Incidents Corrective Action Nonconforming Product Annual self-audit of the entire organization Employees are trained in the audit process Assigned to teams Verify process compliance by organization How we Measure up.

10. Material Service Orders (MSO)

11. Material Service Orders (MSO) • Warranty returns as a % of eligible shipments = .7% • 38,000 items shipped in last 2 years • 285 warranty MSO items • 105 warranty MSO items performed to specification • Warranty cost as a percentage of Sales = .18%

12. Delivery Cycle • Book and Ship • We ship in days not weeks! • Internal standard: we’re tough on ourselves • We track annual performance verifying improved performance

13. Customer Comment Process Engineering Customer Input Sales Rep. Customer Comment System is used to address problems that would not otherwise be resolved by the QMS. Customer Feedback Comment Tracking Operations Customer Service Regional Manager Quality Manager Web

14. Incoming / In process Inspection • We inspect at: • Receiving (All Raw Material) • Post Assembly • 100% Test • 100% Calibration • 100% Configuration • Failures = Non-Conforming Product (NCP) • Extensive database of all types of failures and failure points • Hands off to product improvement • Ties to MSO database

15. OSHA • The Nationally Recognized Testing Laboratory (NRTL) Program, • Part of OSHA’s Directorate of Science, Technology, and Medicine. • The Program recognizes private sector organizations as NRTLs, and recognition signifies that an organization has met the necessary qualifications specified in the regulations for the Program. • The NRTL determines that specific equipment and materials ("products") meet consensus-based standards of safety to provide the assurance, required by OSHA, that these products are safe for use in the U.S. workplace. • For purposes of meeting the NRTL product-approval requirements in OSHA standards, e.g., those under Subpart S of 29 CFR Part 1910, OSHA only accepts equipment or products approved by one of the NRTLs

16. Organizations Currently Recognized By OSHA as NRTLs: • Applied Research Laboratories, Inc. (ARL) • Canadian Standards Association (CSA) (also known as CSA International) • Communication Certification Laboratory, Inc. (CCL) • Curtis-Straus LLC (CSL) • Electrical Reliability Services, Inc. (ERS) (also known as eti Conformity Services and formerly Electro-Test, Inc. (ETI)) • Entela, Inc. (ENT) • FM Global Technologies LLC (FM) (also known as FM Approvals and formerly Factory Mutual Research Corporation) • Intertek Testing Services NA, Inc. (ITSNA) (formerly ETL) • MET Laboratories, Inc. (MET) • NSF International (NSF) • National Technical Systems, Inc. (NTS) • SGS U.S. Testing Company, Inc. (SGSUS) (formerly UST-CA) • Southwest Research Institute (SWRI) • TUV America, Inc. (TUVAM) • TUV Product Services GmbH (TUVPSG) • TUV Rheinland of North America, Inc. (TUV) • Underwriters Laboratories Inc. (UL) • Wyle Laboratories, Inc. (WL)

17. UL TUV FM Approvals 2450 2490 2495 FS-X20 FS-X40 Panel Shop 2435 20X/200X 5000 5000 IT Products (-02, -28) 5100-05 3100 3200 NRTLs at SMC

18. NRTL Panel Shop • Approved by TUV to UL508A standard • Panels are approved for installation anywhere in the US and Canada. • Panels are made up of recognized, (approved) components. • Safety tested, Safety rated