Parts Optimization Solutions

1. Parts Optimization Solutions Supporting your engineering, sourcing, make, and maintenance processes

2. Obsolete parts Legacy databases Duplicate data Multiple databases Terminology variances Incomplete data Company acquisitions Inaccurate data Corporate Challenges Lesson One Killer software applications can't compensate for bad data Terminology variances Incomplete data Legacy databases Inaccurate data Duplicate data Legacy databases Inaccurate data Multiple databases Terminology variances Obsolete parts Incomplete data Multiple databases Obsolete parts

3. Key Issue If you cannot find a part in your internal system…. • You cannot use it • There is a high cost to new part introduction

4. Cost to Introduce a New Part Breakdown of Costs: Costs for adding a new part into inventory Source: “Reduced Program Costs Through Parts Management”, by The Parts Standardization and Management Committee

5. Achieves maximum part reuse Reduces new part introductions Ensures data accessibility Reduces sourcing costs and inventory Reduces global procurement costs Increases productivity Reduces mistakes resulting from enterprise-wide access to, and control of, data Parts Optimization Once your data is optimized, you can leverage your technology and human capital investments to perform as they were intended.

6. Parts Optimization • Makes your parts data: • Accurate • Consolidated • Complete • Controlled • Standardized • Quickly accessible throughout your enterprise

7. With a simple extract of your data, hard cost savings can be achieved through: Standardizing terminology, Identification and removal of duplicates, Identification of equivalencies driving the use of preferred parts & vendors Augmentation of technical characteristics for parametric searching Consolidation of multiple databases Corporate buys for better vendor pricing and delivery Cost Savings

8. Percentage of Duplication………………..5% Carrying cost ……………………….$500/part By eliminating part duplication Savings……………………$2,500,000 /year Cost Savings For just 100,000 parts

9. Serving 33% of Fortune 500 52% of Top DoD contractors 25% of Global 1000 companies Over 15,000 customers in more than 97 countries About IHS IHS has a long history and is a world leader in providing critical parts and information solutions Background • Over 40 years of experience • Over 3,000 employees worldwide • Over $450 million in revenue Technology • 24x7 redundant hosting center • Over 20 million electronic pages of technical information • $5.0 million investment in R&D each year

10. IHS Source Data • 20 million parts • 400,000 product catalogs • Categories • Electrical • Electronics (Semiconductors, Passives,Connectors, Electromechanical, Mil-Spec Cylindrical Connectors + 3.5M datasheets) • Mechanical • Optical • Components & Assemblies • Active and Historical • Commercial and Government

11. Manufacturer part numbers Standardized product descriptions Technical attributes and values Supplier data Historical name cross referencing from 1970 forward Technical catalog pages Data sheets Procurement histories NSNs UNSPSC codes API PIDX standard classification SIC/NAICS codes Industry standards (U.S., International, National) Corporate standards Material specifications Classification structure IHS Source Data

12. Supporting Industries Worldwide Government • Navy, Army, Air Force • DLA • Federal Agencies • State and Local Governments • Transportation • Boeing • United Technologies • General Motors • BAE Engineering Services • Bechtel • Stone & Webster • Kellogg, Brown & Root • Black & Veatch Electronic/Electrical • Intel Corporation • Lucent Technologies • Harris Corporation • Utilities • American Electric Power • Tennessee Valley Authority • Arizona Public Service • Florida Power & Light Petro-Chem • ExxonMobil • ChevronTexaco • Shell • DuPont

13. Data Classification Organizing components into a classification structure standardizes terminology and defines characteristics for consistent, in-depth access to parts. Parts Optimization Services

14. Data Repair Data Repair standardizes terms and strips inaccuracies from your databases. Erroneous data and discrepancies are examined, corrected or flagged. Data consolidation then restores order to databases and ensures the consistency and uniformity of parts information. Duplicate data is flagged for removal. Parts Optimization Services • BLT • BT • BOL • BT • B - B0LTT - B0L - BBLT -BOOLT = bolt

15. Data Enhancement Parts data contains a wide range of information, such as technical characteristics, standard commodity codes, obsolescence predictions, design alternatives, and other potential supply sources. Data Enhancement expands and fills-in the parameters of your databases Parts Optimization Services

16. Parts Optimization Services • Data Maintenance • Component parts information is constantly changing. Data Maintenance helps to ensure the long-term validity of your product data. Regular maintenance assures your product data continues to provide accurate, useable information. • Data changes, additions, deletions or enhancements are integrated into your databases. • Historical references are tracked and managed

17. Clean and complete parts information can then be loaded into Indus Passport American Electric Power • Problem • History of allowing anyone to enter information into the parts database • Mergers resulted in multiple parts databases • Incorrect information entered • Parts technical characteristics missing values • Parts duplication • Solution • AEP data was “cleaned” against IHS data: descriptions standardized; part number inconsistencies corrected • AEP data was “augmented” by filling in missing technical characteristics from IHS data

18. Guaranteed optimal parts reuse Improved Asset Utilization Minimal Downtime and Cost Cost Containment Consolidation of buys resulting in lower acquisition costs Incorporation of trading partners Suppliers, Repair Depots, Stocking Locations Improved Profitability Results

19. IHS World Headquarters15 Inverness Way East Englewood, Colorado, USA 80112 Web site: www.ihs.com E-mail: info@ihs.comPhone: 1-800-716-3447 (USA)+1-303-397-2896 (Outside US) Fax: 1-800-716-6447 (USA)+1-303-397-2410 (Outside US)