1. IMDS & PAP Sampling or a few words on IMDS Change Management PAP = Product Approval Process by the MMDS Working Group A. Grützner / S. Dully / H. Traiser / C. Dietsche / R. Dües / K. Nigl April 2015

2. Today the IMDS Change Management Rules stipulated in the IMDS REC001 describe when an IMDS Material Datasheet (MDS) must be updated by the supplier and the supply chain. A change in the MDS is connected with a PAP sampling. A new/updated IMDS creates a new/updated PAP. A PAP sampling is the agreed Product Approval Process (like PPAP or VDA sampling) between supplier and customer. The PAP sampling concludes the commercially agreed contract between both parties, supplier and customer. Just a few basics MMDS Working Group

3. Always IMDS datasheet must be in compliance to agreed contract conditions! How does the sampling process work with IMDS? Customer & Supplier agree product design Supplier proposes product and IMDS to customer Customer reviews supplier‘s product and IMDS Customer & Supplier agree product & timing Must be in line with contract … Supplier continues to supply for agreed time and design Customer approves supplier‘s product and IMDS

4. MMDS Working Group IMDS Change Management (CM) is defined by the 3 Deltas (∆s): ∆ Part Number- a new p/n requires a MDS ∆ Product Weight- is +/- 5-10% of the assembly weight ∆ Product Material- changes in material composition o Production Move is not an argument – not in CM! o Outdated IMDS data is not an argument – not in CM! o IMDS Application Code is not an argument – not in CM!  Again: IMDS data have to be in compliance to bilaterally agreed contract conditions ! Changes of relevance during Product Lifetime?

5. MMDS Working Group Why do we have „Dates“ in IMDS? This IMDS REC001 does not stipulate any IMDS Change Management Requirements! This MDS does not have any must-update Conditions!

6. Example: Although the Tier-0 could have reviewed the apply-able CM conditions from 2004, he instead applied the new CM conditions from 2014. …which contradicts the bilaterally agreed contract conditions. Possible Consequences: Tier-0 does not accept PAP, for IMDS data submission is lacking Delays in the PAP processes (…and many discussions) Delays in the programs/projects (…and many more discussions) Costs encountered from further complications resulted from this holdup Charge backs within the entire supply chain. Proposal: Put MDS in „seen“ and review contract conditions before rejecting Must the mentioned MMDS* be changed? *MMDS = Material MDS Think before Rejecting! Review applicable IMDS Rules first! Supply Tier 0 Tier 1 Tier 2 Tier 3 MDS MDS from 2004 MMDS Working Group

7. …because the IMDS Data Validation Process is not an arbitrary act. We want Reliability in the Acceptance of our IMDS data ! …because also IMDS must follow Conditions that were agreed upon at Contract Conclusion. We want Stability in the Contractual Conditions, bilateral requirements and IMDS Acceptace Criteria ! Why do we have Change Management Rules? Always IMDS datasheet must be in compliance to agreed contract conditions! MMDS Working Group

8. Negative Impact to… Ethics and Moral Supply Tier 0 MDS Supply Tier 1 Tier 2 Tier 3 MDS MDS from 2004 Tier2 and 3 have a bilateral contract Ignoring IMDS Change Management Rules creates incorrect rejections to the sub-tier IMDS data, the data flow comes to a hold and impacts sub-tier relations in such a negative way that those become negatively impacted as well. All sub-tier business partners understand this as tortious, unethical interference ! “Against the backdrop of complex business relationships, we are responsible for our own conduct as well as for the activities of our partners – both in a moral sense and with respect to the law. We can uphold our high ethical standards only if all partners pull together and have a shared understanding of values.” MMDS Working Group

9. MDS Materials or a few words on the future of …the Material Material Data Sheet MMDS = Material Material Data Sheet = by the MMDS Working Group A. Gruetzner / S. Dully / H. Traiser / C. Dietsche / R. Dües / K. Nigl

10. Quality Enhancement to all MMDSs …talking about “Quality of Data”: Our Team intends to install a new MMDS type and method ! Check & Approve MMDSs directly from the start in the chain (quality principle; Accuracy of Content) Centralized MMDS accuracy check directly after creation Check must be done in connection with IMDS SC material expertise To assess the data quality, the data must be visible to the auditing person/company MMDS creation by Material Manufacturers only !

11. Quality Enhancement to all MMDSs Database of approved MMDS - once approved, it’s approved for all Formally approved MMDS IDs stored in central DB for later use by all MMDS customers Further formal MMDS checks NOT necessary (covers >80% supply chain rejection reasons) Pre-Condition & Action Items: Harmonized MMDSs Validation Criteria Catalogue to implement Initiate and control MMDS processes for the supply chain (how to get the accurate data)

12. MMDS Data Flow Centralized check for Material Data Approval MMDS creating Company Approved MMDS (ready for sending or publishing) approved MMDS ID Rejected MMDS IMDS inbox checked formal inbox check excluded NOT to reject for quality or formal criteria (?) ( ) Supply chain Validation IT checks provided by HP Expertise provided by SC CMDS Creator 3 ? CMDS Creator 2 CMDS ID 002 CMDS ID 001 “normal” MMDS ID approved MMDS ID ? CMDS Creator 1 CMDS ID 001 “normal” MMDS ID approved MMDS ID ? “normal” MMDS IDs

13. Thanks a lot… …for listening …and your kind understanding