1. World-wide approval and certification program for electronic components (IECQ) IECQ HSPM ASQ Mar 07 1 © 2007 SBGi Institute, LLC All rights reserved A Systemic Approach to Hazardous Substance Management Hazardous Substance Process Management QC 080000 IECQ HSPM Randy Canfield CEO/Pres. SBGi Institute

2. IECQ HSPM ASQ Mar 072 © 2007 SBGi Institute, LLC All rights reserved The Macro Trends Growing amounts of hazardous substances are finding their way into products and the processes that produce them Discarded products are creating new hazards to humankind and the environment Humans and consumers are beginning to demand environmentally-friendly products and safe disposal processes

3. IECQ HSPM ASQ Mar 073 © 2007 SBGi Institute, LLC All rights reserved The Macro Trends Governments are beginning to demand by law and trade restrictions that hazardous materials be managed and reduced A patchwork of laws and restrictions is emerging around the world and within the U.S. Industry will need to respond to consumer and governmental demands

4. IECQ HSPM ASQ Mar 074 © 2007 SBGi Institute, LLC All rights reserved The Role of Standardization Standardization of Technical Requirements Standardization of Conformity Assessments

5. IECQ HSPM ASQ Mar 075 © 2007 SBGi Institute, LLC All rights reserved Standardization of Technical Requirements IEC – International Electrotechnical Commission TC – 111 Environmental Standardization for Electrical and Electronic Products and Systems TC – 207 Environmental Management Systems (EMS) JSA – Japanese Standards Association TISI – Thai Industrial Standards Institute ANSI – American National Standard Institute

6. IECQ HSPM ASQ Mar 076 © 2007 SBGi Institute, LLC All rights reserved Standardization of Conformity Assessments In electronics, numerous conformity assessment groups have been assembled over many years IECQ - International Electrotechnical Commission Quality Assessment System for Electronic Components NAI – National Authorized Institutions SI – Supervising Inspectorate

7. IECQ HSPM ASQ Mar 077 © 2007 SBGi Institute, LLC All rights reserved Laws Regarding Hazardous Substances EU RoHS EU WEEE California USA SB50 (WEEE) California USA AB 48(RoHS) China Ministry of Information Industry Order #39 Korea & Japan - pending

8. IECQ HSPM ASQ Mar 078 © 2007 SBGi Institute, LLC All rights reserved Time schedule for WEEE and RoHS 13 August 2005WEEE comes into force Producers are responsible to finance recovery, reuse and recycling of WEEE Equipment entering the market is labelled with WEEE symbol 1 July 2006RoHS comes into effect Electrical and Electronic Equipment (EEE) must comply with Directive 1 July 2006Japan RoHS – Amendment to include labelling (six RoHS substances) by manufacturers and importers of computers, televisions, refrigerators, washers & dryers, microwaves and air conditioners. Also, importers must meet DfE criteria required of domestic manufacturers 31 December 2006According to WEEE Meet recovery, reuse and recycling targets Collect WEEE at least 4 kg per inhabitant per year 1 March 2007China RoHS phase I - Labelling requirement for all electronic products sold in China 1 July 2007Korea RoHS - 10 items (TVs, refrigerators, air conditioners, laundry machines, personal computers, audio devices, cellular phones, printers, copy machines, fax machines) 31 December 2008According to WEEE New mandatory targets for WEEE will be launched

9. IECQ HSPM ASQ Mar 079 © 2007 SBGi Institute, LLC All rights reserved Exemptions There are exemptions But no company is free of impact False reality = Reliability Risk Component Manufacturers world wide are producing HSF products You must know the Hazardous Free status of every component that you purchase

10. IECQ HSPM ASQ Mar 0710 © 2007 SBGi Institute, LLC All rights reserved Financial Implications Huge fines exist for legal violations Liability follows trail back to producer of products and parts suppliers Financial responsibility follows product from womb to tomb – from design through disposal Be a manager, go to jail. principle emerging (In the USA)

11. IECQ HSPM ASQ Mar 0711 © 2007 SBGi Institute, LLC All rights reserved Catastrophic Consequences Sony DTI - RoHS Enforcement Guidance Document released Greenpeace testing major manufacturers products

12. IECQ HSPM ASQ Mar 0712 © 2007 SBGi Institute, LLC All rights reserved Environment of Testing & Audits Industry spending millions of dollars testing incoming parts and outgoing products Companies sending suppliers very long (costly) questionnaires Documents requiring company officers to sign letters certifying aspects of products are creating personal liability

13. IECQ HSPM ASQ Mar 0713 © 2007 SBGi Institute, LLC All rights reserved The IECQ HSPM Solution IECQ HSPM – Hazardous Substance Process Management to QC 080000 An internationally agreed specification for companies to be certified by third-party assessors that their processes to manage, minimize and/or eliminate hazardous substances meet the highest standards IECQ HSPM incorporates as applicable RoHS, WEEE, SB-50, etc and the principles of ISO

14. IECQ HSPM ASQ Mar 0714 © 2007 SBGi Institute, LLC All rights reserved IECQ HSPM Certification Provides systemic framework to demonstrate compliance with laws and industry standards Indicates companys desire to be world- class and to do the right thing! Facilitates access to global markets Creates a competitive advantage

15. IECQ HSPM ASQ Mar 0715 © 2007 SBGi Institute, LLC All rights reserved Where to Start Key executives and operations managers need to become aware of pertinent laws and IECQ HSPM Operations managers and key employees need to know more to become implementers Companies will need some employees to be educated and certified as internal assessors

16. IECQ HSPM ASQ Mar 0716 © 2007 SBGi Institute, LLC All rights reserved What Next Integrate QA & EH&S resources to Implement IECQ HSPM Get qualified help as needed Train internal staff Engage 3 rd party assessor to get certified Require/Encourage/Help suppliers get IECQ HSPM certified Be a pacesetter in moving the world toward a hazardous substance free future

17. IECQ HSPM ASQ Mar 0717 © 2007 SBGi Institute, LLC All rights reserved The Future IECQ HSPM provides an expandable, systemic framework for the future as: More substances are designated hazardous More laws and regulations emerge globally Exemptions are reduced or eliminated Public and governmental demands will increase for an ever greener world

18. IECQ HSPM ASQ Mar 0718 © 2007 SBGi Institute, LLC All rights reserved Key Contributors to QC 080000 IECQ HSPM Contributing Companies The Boeing Company Northrop-Grumman Honeywell Philips Semiconductor Rockwell-Collins GE BAE Systems Control Avnet QinetiQ Technology Electronic Industry Alliance (EIA) OmniCell Contributing Industry Programs Sony Green Process Ricoh Green Process HP Green Process Motorola Green Process

19. IECQ HSPM ASQ Mar 0719 © 2007 SBGi Institute, LLC All rights reserved IECQ HSPM Certification Value Proposition Levels the playing field Internationally recognized certification Reduces overall management cost Builds on existing QMS