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AccuSpec Electronics, LLC.

AccuSpec Electronics, LLC. Customer and Supplier Presentation. AccuSpec’s Goal. “We aspire to be the best and work every day toward that end.”. Company Overview. Founded in 1989 Customer Driven Organization Flexible Customer Delivery Lead Cost Structure and Lean Philosophy

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AccuSpec Electronics, LLC.

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  1. AccuSpec Electronics, LLC. Customer and Supplier Presentation www.accu-ems.com

  2. AccuSpec’s Goal “We aspire to be the best and work every day toward that end.” www.accu-ems.com

  3. Company Overview • Founded in 1989 • Customer Driven Organization • Flexible Customer Delivery • Lead Cost Structure and Lean Philosophy • Complex Electronics Assemblies (SMT & Thru-hole) • Complex Cables and Chassis • Experience Serving Large Sophisticated Customer Base that Demands Low Cost/High Quality Assemblies www.accu-ems.com

  4. How is AccuSpec Different? • High Quality/Low Cost EMS CompanyAccuSpec Achieves High Levels of Productivity With State-of-the-Art Equipment—Probably Best in Industry for Our Size Company. Erie Overhead And Wage Rates Are The Most Competitive In The Domestic Market. • Customer Driven and Tailored Internal Systems to Support Customer Flexibility.AccuSpec Utilizes Kan/Bans Allowing Customers Maximum Flexibility with Minimum Inventory. Orders Do Not Have to Be “Hard Scheduled” for Months on End. We Understand and Accommodate Uncertain Customer Demand. • We Excel In Planning And Inventory Management.We Utilize Customer Forecasts, Virtual and Physical Kan/Bans to “Pipeline” and Auto-order Material from Key Vendors. www.accu-ems.com

  5. How do we achieve high quality levels? • All Operators Trained to IPC 610 Class D Standards • Rigorous Initial Training Before New Employees are Allowed on Production Floor—Mandatory Safety, ESD, ISO and Component ID Training • Company-wide Bonus Program Tied to Quality (50% of Hourly Bonus Tied to Customer Return Rate and Shop Floor Scrap) and Lean Manufacturing Objectives • Utilize Modern Equipment and Process Controls Rather than “Inspecting In Quality”—Control Methods vs. Inspection Methods • Lean Manufacturing Mentality Reinforced at All Levels and in All Functional Areas • Detailed Root Cause Analysis www.accu-ems.com

  6. Organizational Chart www.accu-ems.com

  7. First Pass Yield On Time Delivery, Days Late on Late Items Returns (Dollars and Percent of Sale) Scrap (Dollars) Inventory Turnover Obsolete Material Vendor On Time Delivery and Quality Cycle Time Through the Factory Productivity Gains Material Price Savings Key Operational Metrics Help Improve Quality www.accu-ems.com

  8. ISO 9001:2001 ISO 13485:2003 (Medical) CSA IPC-610D Class 2 & 3 IPC – 7711/7721 IPC – 620 ITAR UL Quality Standards www.accu-ems.com

  9. AccuSpec’s Cost Structure is Highly Competitive • Erie Market Makes AccuSpec Extremely Competitive • Strong Work Ethic • Talent Level Is High Due To Corporate Relocations and Unemployment Rate • 170% Manufacturing Rate Yields a $24-$25 Total Rate For Manufacturing. Lean Philosophy, Competitive Wage, and High Productivity Make AccuSpec Highly Competitive www.accu-ems.com

  10. New Panasonic SMT Equipment 0201 Placement Down to 12 Mil QFP within 2 Mils Accuracy for Registration. DEK Screen Printers Vitronics Reflow Ovens YESTECH 5 Camera Automated Optical Inspection DAGE 3D X-ray System for Placement and Solder Defect Analyses Vitronics Leaded and Lead Free (Dedicated) Wave Solder Stöelting In-line Wash Automated Conformal Coating Slide Lines Axial Auto Insertion for Thru-hole Parts AccuSpec Utilizes State-of-the-Art Equipment “Most customers are surprised by our equipment and level of sophistication for a company of our size.” www.accu-ems.com

  11. Flying Probe Test Equipment RF Testing & Antenna Tuning Temperature Chamber Range (200°C to -70°C) Functional Testing Full Troubleshooting Capability Agilent In-circuit Test Equipment Test Capabilities www.accu-ems.com

  12. Material Management • Parts Ordering • Based on Forecast, Customer Sales Orders, and Kan/Ban Requirements • Automatic APS Vendor Feed Where Key Suppliers are Given Demand (F/C, SO and Kan/Ban) for Extended Periods in Order to “Pipeline” the Parts. No Legal Liability except NC/NR which are Handled Differently • Bond Long Lead Items and Problem Parts. Customer Sign Off Required For Any Customer Liability For Large Mins, NC/NR, etc. • Combine Customer Requirements For Best Pricing. Use Manufacturers’ Part Numbers • Safety Stock For Critical Long Lead Unpredictable Items www.accu-ems.com

  13. Material Management (cont’d) • Suppliers • Arrow, Future, TTI, AVNET are Key Suppliers • Very Minimal Use of Brokers—Last Resort • AccuSpec is Aggressive at Finding Best Cost/Performance Parts During Quoting Stage • Proactive ECN and End-of-Life Management of Parts • On-going Negotiations with Suppliers for Better Pricing Example: 80% of requirements for parts from Future are bonded, automatically ordered, and released within two weeks of requirements—virtually eliminating issues with on time delivery. www.accu-ems.com

  14. Material Management (cont’d) • Alternatives and Substitutions • AccuSpec Provides Engineering Support for Obsolete, End-of-Life Parts, and Part Substitutions Due to Out-of-Stock Situations. There is No Charge For This Support. • For Obsolete or Long Lead Items We Work With our Customer and Suppliers to Identify Alternatives as Needed. • Alternatives and Substitutions Require Customer Approval • Last Time Buy Requires Customer Approval and Sign Off • Alternate Parts are at the BOM Level, NOT at the Item Master Level. This Means a Customer can have an Approved Alt for One or Several Assemblies but Not All. • No Hidden Charges for ECNs other than Obsolete Material www.accu-ems.com

  15. Supplier Qualification and Scores • Utilize a Supplier Qualification Process • Site Visits, ISO Certification, References • Customer AVL • Use Customer Pricing Leverage to Reduce Cost • Supplier Performance • Vendor Report Card Based On Delivery, Quality, Service, Cost Reductions, and Ease of Doing Business www.accu-ems.com

  16. How Does AccuSpec Manage the Customer Relationship? • Each customer has a dedicated Account Manager. Account managers make sure that all ECNs, NPI, etc. are on track. They coordinate all internal activities. • Customer Service Reps handle tactical order entry, shipping, and routine day-to-day activities. www.accu-ems.com

  17. Dedicated NPI Team (New Product Introduction) • Team Driven • Dedicated Engineering Project Leader • Uses Most Experienced Operators • Dedicated Prototype Cell and NPI Engineering Technicians Who Lead Each Job through Development into Production • Real Time FAI • First Article Inspection • DFM Reviews • Design for Manufacturability www.accu-ems.com

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