NIH Finished Goods Warehouse in Debrecen (EDC)

1. National Instruments Confidential

2. NIH Finished Goods Warehousein Debrecen(EDC) Markovics Péter Mfg Materials BA National Instruments Confidential

3. Agenda Structure CCA Receiving FG Receiving Planning and Kitting Block station Cycle Counters Intercontinental Out Shipping (basics) National Instruments Confidential

4. TO IDC NIH FG NIH FG IDC FG Planners and Kitters NIEC FG NIH FG NIH FG Office Server Room Structure CCA Receiving Japan Consolidate Block Area Cycle Counters Intercontinental Out Shipping Vienna Budapest Forwarding agencies (to customers and branches) Chassy testing FG Receivers Production National Instruments Confidential

5. CCA Receiving During Final Inspection (FI) items are put into ESD bags, on which packaging label is glued This label contains information about the item (Part number, Serial number, Serial genealogy, calibration date) and so information about its status CCA receiving means transferring and booking finished CCAs from production to FG Warehouse CCA receiving stands from two steps: From production the items can only be received if the operation sequence is 210and the status is ‘to-move’; Completion Transaction is performed via Mobile Supply Chain Application (mobile scanner). After scanning, the system shows if the item needs to pass product audit before the CCA transfer to FG warehouse. If not, MSCA automatically transfers finished goods from WIP module to Inventory module, to ZZFGSTG subinventory, HZ-1-1-AA location (default, but can be changed in Discrete Job form) and automatic booking is performed. After this, items are collected into black boxes on metro cars. Before subinventory transfer, Hungarian Product Transfer database (Lotus) is checked, whether the CCA can be transferred to normal FG location. If it’s status is ‘Transfer complete’, with Subinventory Transfer, from HZ-1-1-AA to NIH FG subinventory (and locator) items are transferred*; (choosing a locator needs carefulness – should check Supply-Demand, whether there exist open jobs for the same items and for so this, would be enough space for all of the items on the locator). These finished goods are collected into gray boxes, on which, reduction label is glued in addition item and locator numbers are signed. * If the status is not Transfer Complete (eg. ‘MVR’, ‘Not considered’, ‘Remove from list’, ‘Prototype’, ‘Preparing for transfer’), then subinventory transfer must be performed to blocked location (VQ-1-1-AA). In these cases e-mail is required for Support team whether these items can be transferred to normal locations or not. National Instruments Confidential

6. FG Receiving Finished goods can arrive to Raw Material Warehouse and both IDC and EDC sides Arriving to Raw Material Warehouse: Receivers book the items to NIHZZFGREC subinventory and inform FG receivers. - Arriving to IDC: Physically receiving happens at IDC warehouse manually (PO, Release, Item number and serial numbers are given (last, if serialized)) by FG receivers At EDC side two types of receiving can be performed: 1) One-stepped (ASN): After giving the Delivery number the items are received to the system automatically (eg. Sonopress and items coming from IDC side (after receiving at IDC – as mentioned above)). 2) Two-stepped: Manually receiving: after giving PO, Release and Item numbers, if serialized than serial numbers as well – at Receipts program, Receipt number is generated by Oracle. Then giving the Receipt number to the Receiving Transactions program, subinventory and location can be assigned and so, items get into stock by this step. Goods are collected on metro cars and are transferred physically to the assigned locations. National Instruments Confidential

7. Packaging Planning • Customers get built Kits from NI, that stands from finished goods, guides, softwares, etc. • Factory Planner (FP) runs at every night and cuts Kitting Jobs(‘PK’ or ‘SS’) • Kitting jobs like WIP jobs, but have no Routing! • Kitting jobs can be cut manually – before, Job Simulator can beused to decide if the selected kit can be built • Kitting Planners print the created job list every morning via‘Discrete Job Pick List Report’ • This list contains information about the Kits needed to be built on that day: • Page number, FP’s running date, Job number, Kit Part Number, Planner code (‘Class’), To subinventory / locator, Quantity, ‘KIT BOM’ • Pick lists are checked and selected by ‘from’ subinventory and locations, because FP does not investigate, if the items are on Blocked Area, MVR location, Re-calibration location or they are in the Raw Material Warehouse • Default priority for every pick list is 4, but can be modified by the right of ‘NI Shipment Priority’ (in Oracle) or by demands via e-mails from planners (new priorities defined from 1 to 3 depending on the job type: ‘PK’,’S’,’SS’)

8. Kitting • Kitters work by the right of the Kit Completion Chart (daily task list) • Kitters works by the prioritized Pick Lists • Serial numbers have to be reserved for the job; • Build Kitsform is used to complete the job. • Process: • Typing the job number the form automatically fills the component list • Scanning the components (bag, container, foam, guide, note, CCA, SW, etc.) – and serial numbers if needed; • Choosing: Save the kit • Choosing ‘Action field’ => Going on with the next kit or exit the form; • Label is printed with item and serial information; after gluing, kits can be transferred to the location given on the Pick list • Finishing the Kitting job and trying to rebuild those kits, an error message informs about the completion in the Build Kits form. • If a kitting job is Released, has not been started and FP had cut it - will be deleted by FP, in addition by its next running the same kitting job will be cut again on the next day. • In Oracle: the items’ on-hand quantity decrease, kits’ increase • De-kitting: If a kit needs to be disassembled (for any reasons)

9. Block Station • Rejecting: • If a kit contains non-conforming install CDs and needs new ones, blocking is needed (to avoid shipping) • After de-kitting, new kits have to be built with the convenient install CDs • The old CDs can be rejected or can be sent to the Branches trying to sell them • Rejecting happens via Miscellaneous Transactions (Account Alias Issue) • Rework: demand by mail, after de-kitting new job is cut for the CCA • Blocking: • Based on e-mails • If the CCA is in a Kit, then the whole Kit has to be blocked • Simple Subinventory Transfer is performed to finish this operation • Basic conventions of location naming: • VC = Items need re-calibration • VQ = Manufacturing Verification Run (MVR) products • RQ = Blocked items • Calibration jobs: • Re-calibration is needed for CCAs after 90 days • Customers must send back the products in every year for re-calibration • Calibration jobs are based on Calibration report, de-kitting is needed • Basic location for Calibration jobs: VC-1-1-AA

10. Cycle Counters • Continuous and on the fly stock-taking, based on the Cycle Count Listing • Three types: 1) ‘A’ means - Monthly 2) ‘B’ means - Quarterly 3) ‘C’ means - Semi-annual • Searching all possible occurrences at all places: - Locators, Receiving, Block station, Shipping, MRB subinventories - NIH FinGod, NIEC FG, IDC FG (separately controlled) • Discrepancy is booked depending on its type (negative or positive) and the value of the materials • Negative discrepancy can be booked automatically under $200, between $200 and $1000 material-booking document is printed and waiting for admission; over $1000, General Manager’s permission is required.

11. Interco Out • Naming: ‘Intercompany Out’ or ‘Intercontinental Out’ • In the interest of shipping NIH finished goods through IDC, a transfer between EDC and IDC is needed • This transfer is handled at ‘Interco-Out’ station • By Pick Slips, the items and kits are collected on metro cars • NI Shipping Super Users perform these operations via NI Custom Shipping Transactions Form • After scanning the Delivery and Serial Numbers (Item number + Quantity without serialization) the transaction can be saved and Pack Slip is printed • At IDC side (‘Interco-In’) ASN receiving is performed (NI Custom ASN Receiving) • ‘Put away’ doc is printed and attached to the kits collected on metro cars • If any problem occurs during ASN receiving, manual receiving is performed

12. Shipping (basics) • Shipping is based on Pick Release Report • Kits and items are collected by the Pick Slip via MSCA (Pick Confirm) • Shipping happens to customers and branches by the right of the Ship method • EDC Shipping workstations: • To customers: Direct Ship (To Europe and Japan) • To Branches: Consolidate shipping (To Asia and Austin) • Shipping includes: • Packing, • Weighing in, • Printing Pack Slip and Invoice • Saving this process is Ship confirm

13. Questions?

14. Thank you for your attention!The End