1. Card Quality Management in Card Production & Personalization ICMA Euroforum 2011 Munich, 13 th October Presented by: Thies Janczek

2. COCASO 1 October, 13st 2011 ICMA Euroforum, Munich Content Introduction Quality Management Card Production Assessment Card Tests Quality Strategy

3. COCASO 2 October, 13st 2011 ICMA Euroforum, Munich Quality Management Introduction Yesterday Quality Assurance Inspect Quality into Product ISO 9001 first published in 1987 Today Quality Management Commitment, Communication, Culture

4. COCASO 3 October, 13st 2011 ICMA Euroforum, Munich Quality Management Introduction

5. COCASO 4 October, 13st 2011 ICMA Euroforum, Munich Quality Management Introduction Classical Quality AssuranceTotal Quality Management Humans make failuresProcesses provoke failures Single employees are responsible for failures All employees are responsible for failures Zero failure is not realizableZero failure is the target Procurement from many supplierPartnering with selected supplier Customer need to accept the quality that is delivered Everything is focused on complete customer satisfaction

6. COCASO 5 October, 13st 2011 ICMA Euroforum, Munich Quality Management Introduction Poor practices (examples) Leaders not giving clear direction Not understanding, or ignoring competitive positioning Each department working only for itself Trying to control people through systems Confusing quality with grade Accepting that a level of defects or errors is inevitable Firefighting, reactive behavior The Its not my problem attitude

7. Quality Management Production Objectives Culture Change to Right First Time New Products and Components Commitment to Continuous Improvement Never Stop Improving Total Costs View to be established Testing versus Field Return/Claims COCASO6 October, 13st 2011 ICMA Euroforum, Munich

8. COCASO 7 October, 13st 2011 ICMA Euroforum, Munich Card Quality Management Card Production Assesment Process and Product Assessment Is every critical Parameter controlled? What are the Variables and Changes? In-Production Testing Quality Plan / Control Plan Identification of New Products/Materials Define Qualification necessities Yield limits / Scrap rates Monitoring

9. COCASO 8 October, 13st 2011 ICMA Euroforum, Munich Card Quality Management Card Tests - Definitions ISO 7810 – ID Cards Physical Characteristics ISO 7811-x – Magnetic Stripe Recording ISO 7816-x – Integrated Circuit Cards ISO 14443-x – Contactless Cards-Proximity ISO 10373-x – Test Methods Further Specifications/Standards E.g. ANSI, AFNOR, Tender (Health, ID-cards), MasterCard CQM, Customer Specifications

10. COCASO 9 October, 13st 2011 ICMA Euroforum, Munich Card Quality Management Product Quality Requirements Physical Characteristics Size, Shape, Surface, Chemical, Magnetic, Electrical, Construction Temporal Mechanical, Electrical, Magnetic, Ageing Functional Electric, Electromagnetic, Magnetic, Terminal interface Appearance Layout, Design, Brand, Color Ergonomics Toxicity, Breaking Behavior Security UV, Hologram, Signature Panel Miscellaneous Manufacturing Process Stability

11. COCASO 10 October, 13st 2011 ICMA Euroforum, Munich Card Quality Management Card Tests - Considerations Functional 100% for Chip Cards Durability Adjust for extended Lifetimes (Banking, ID) Internal vs. External Prefer In-House Testing Qualification/Production Quick and Easy Tests in Production

12. COCASO 11 October, 13st 2011 ICMA Euroforum, Munich Card Quality Management Card Tests – Selection Card sizeResistance to Chemicals Tensile stress test to simulate mailing Dimensions of contacts Card Thickness Card dimensional stability and warpage with temperature and humidity Relief height of embossing after mechanical stress Number and location of contacts CornersLight Relief height of embossing after temperature stress Stability to Plasticizer EdgesDurability High and low temperature storage Module Adhesion Dynamic Bending testPeel strengthTemperature stability Abrasion resistance of Personalisation Dynamic Torsion testAdhesion or blockingMagnetic stripe tracks positionUV-light Bending stiffnessOpacity Surface Profile and Height of contacts X-Rays 3-Wheel testOverall Card Warpage Mechanical Strength of contacts Static magnetic fields Wrapping test High temperature storage in cantilever position Electrical Resistance of contacts Color fastness Corner Impact testSurface distortions Local Pressure on Module w/ counter plate Encoding on Magnetic Stripe Impact testAdhesion of Add on'sStatic Electricity Discharge Relative Height of Contacts

13. COCASO 12 October, 13st 2011 ICMA Euroforum, Munich Card Quality Management Strategy / Recommendation In-Production Testing Monitor Performance Indicators Yield Rate Peel Strength Set Internal Threshold to 6 N/cm Statistical Analysis as Early Indicator Module Adhesion Set Internal Minimum to 60-70 N Test Matrix (changes vs. tests) Identification of Changes (Material/Process)

14. COCASO 13 October, 13st 2011 ICMA Euroforum, Munich THANK YOU FOR YOUR ATTENTION Card Quality Management in Card Production & Personalization More Information: COCASO – Thies Janczek – Moewenstrasse 5a – 24113 Molfsee – Germany Phone: +49-(0)4347-703526 – Email : janczek@cocaso.com www.cocaso.com

15. COCASO 14 October, 13st 2011 ICMA Euroforum, Munich