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Project Name： T emporary visiting

Page 1. Seaory visiting report. Project Name： T emporary visiting Customer：/ Customer P/N： / ACT P/N：/. Prepared by ： GAVIN Date：2017/08/21

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Project Name： T emporary visiting

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  1. Page 1 Seaory visiting report Project Name： Temporary visiting Customer：/ Customer P/N： / ACT P/N：/ Prepared by： GAVIN Date：2017/08/21 Reply by： Updated：

  2. Page 2 Basic information about the visiting • Visiting date • SEAORY: 11:00AM, 08/28/2017 • PHILISITONE14:00PM, 2017/08/28/2017, • Visiting personnel：Gavin/Darren • Visiting purpose： • To understand the quality system, production management, product information and product issues.

  3. Page 3 Development history 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Seaory’s development history 2017

  4. Page 4 Sales mode Seaory’s sales mode

  5. Page 5 Product’s basic information SEAORY’s major products

  6. Page 6 Supply relationship of integrated machine SEAORY is a customer of PHILISITONE who helps PHILISITONE to receive orders for production. PHILISITONE mainly produce integrated machine.

  7. Page 7 Production process of integrated machine for PHILISITONE company • PHILISITONE Company • The company has passed the ISO9001 quality system certification (The certification result in 2017 lack of internal audit and management audit) • The company has obtained a number of nationally recognized patents. • PHILISITONE’s company partners banks, medical institutions (auxiliary equipment: cloths recycling, medical history scanning, wheelchair management), companies and so on.

  8. Page 8 Production capacity of integrated machine for PHILISITONE company • PHILISITONE Company • SEAORY’s monthly maximum demand are 600~700 sets, and the monthly minimum demand are 100~300 sets. • The monthly maximum demand for other customers are 500~800 sets, and the minimum demand are 300 sets. • For the monthly key quality data, the defect quality rate of incoming material of core PCBAis more than 66.67%, and the quality control data for incoming material is poor, there almost has no quality control but just incoming material screening and rework.

  9. Page 9 Production capacity of integrated machine for PHILISITONE company The first assembly workshop The second assembly workshop Part A Module A Part B Incoming material Complete machine assembly and shipment Module B Part C Material storage Part D Module C • The control of production process for PHILISTONE (All parts are designed and developed in PHILISTONE). • Internal cable is supplied by cable supplier, it belongs to normal electronic wire. • PCBA supplier supply the PCBA • Small module is stamping by metal plate supplier. • Large module is supplied by metal plate supplier. • Assembly: PHILISITONE Part E

  10. Page 10 Production capacity of integrated machine for PHILISITONE company • The control of production process for PHILISTONE • The quality control of incoming material is not improve, and there’s a lack of effective management for PCBA • The quality management of production process is not improve, some products are soldered with lead tin wire, all the processes are lack of temperature and humidity management, and the materials are scattered on site. • Product assembly process is too simple,

  11. Page 11 summary • The audit process of ISO9001 quality system is incomplete, which lack of the necessary internal audit and management audit process. • PCBA as one of the core part of integrated machine, the quality process management needs to improved. • ESD process control • PCBA turnover process control • PCBA storage environment control • PCBA assembly process control • The quality control of incoming material is quite important, high defect rate of incoming material will increase the quality risks of assembly process. • The defect rate of core part PCBA up to 66.67%, and the assembly process requires a lot of manpower and material resources to rework. • High defective rate of incoming material, high rework frequency, the yield of the shipment product has been reduced. • Environment control needs to be improved • The material storage environment needs to be monitored. • The exhaust gas produced in the production process needs to be effectively discharged.

  12. The End Page 12 The end Thank you!

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