1. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential The art and science of global product development and operations – A silicon valley perspective K.R. Subramanian President, Strataplex, Inc.

2. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Do you think this happens only in cartoon….? Communication, cooperation, team work, alignment…….

3. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Then, think again……… Communication, cooperation, team work, alignment…… continued…..

4. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Welcome to the real world of Global Operations…. Case study 1: Company: Leading fiber optic components supplier in the world Objective: What: Transfer the components manufacturing operations to a CM in Thailand. Why: To enable the company grow into sub-systems and systems business Simple enough objective.. However …

5. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Customer OEM/CM LocationSan Jose, CA, USABangkok, Thailand EthnicMostly ChineseAll Thai, one Caucasian CEO TechnologyFiber opticsElectronics Product expertiseHigh degree of customizationCookie cutter, high volume Company disciplineLoosely bound documentationRigor of ISO 9001, 14001 ExperienceNo CM outsourcing everNever worked in optics PopulationMostly engineersMostly assembly skilled MoodDon’t want to outsourceDon’t have a clue Have not done this before…. thus we did not know where to begin Simple enough objective.. However the disparity in environments was huge…

6. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential If you do not know where to begin…Let us mind map After the mind map, dinner, beer and some lattes to fight 15 hour time difference, we had more confusion…… But we are getting somewhere; at least we knew what needed to be done… (so we thought!)

7. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Next few weeks we worked on More important stuff…. Like Management alignment and assurance Fostering team work across teams Developing trust, overcoming fears of letting go Staying objective versus emotional Process focused rather than knee-jerk reactions Understanding, respecting each other’s strengths and weaknesses More lunches, beers, dinners, cigarettes and lattes And, on the less important stuff….. like Technology alignment Optics and electronics integration Assembly tools, processes Product specifications, testing Engineering and manufacturing documentation Supply chain and logistics Technical and process training Qualification and reliability Making progress

8. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Techniques and processes used…. Factory visits to understand each other’s capability Getting to know the “team mates” on the other side Solving issues as one entity Ensuring job security for the USA folks Developing business process flows Daily, weekly communications Documenting, following through action items Picture is worth a thousand words Utilizing best practices from both sides

9. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential What did we accomplish Upward momentum – started outsourcing other components ISO discipline ( though not certified) Out of the box thinking in design for manufacturability Operations thinking from concept stage Customer became vertically integrated to systems business CM became number one in the fiber optic components industry

10. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential What it takes to read a bit of information Hard disk drives, all hand assembled Electronics Electrical Servo Magnetism Aerodynamics Mechanical Tribology Thermal Wafer processing Material science And… A “bit” of luck Case Study 2

11. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Read write / Disk drive Product Life Cycle Co-development, 2 yrs Qualification 6 months Volume, From 1000 to millions, 3 months EOL Transfer

12. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Supplier, R&D Customer R&D Customer Manufacturing Supplier Manufacturing Supplier, San Jose, CA Team of 40 people engineers, logistical support, program management and customer service Customer, San Jose, CA Team of 20 – 30 people in R&D, manufacturing, management and reliability Supplier, San Jose, CA Team of 40 people engineers, logistical support, program management and customer service Customer, San Jose, CA Team of 20 – 30 people in R&D, manufacturing, management and reliability Supplier: 100s of people in pilot transfer team, 5000 – 20000 operators and manufacturing folks in assembly in two locations, Philippines and Thailand Supplier: 100s of people in pilot transfer team, 5000 – 20000 operators and manufacturing folks in assembly in two locations, Philippines and Thailand Customer: 1000s of disk drive assembly, engineering, procurement Customer: 1000s of disk drive assembly, engineering, procurement Triangular coordination - Environment

13. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential Supplier, R&D Customer R&D Customer Manufacturing Supplier Manufacturing Supplier, San Jose, CA Team of 40 people engineers, logistical support, program management and customer service Customer, San Jose, CA Team of 20 – 30 people in R&D, manufacturing, management and reliability Supplier, San Jose, CA Team of 40 people engineers, logistical support, program management and customer service Customer, San Jose, CA Team of 20 – 30 people in R&D, manufacturing, management and reliability Supplier: 100s of people in pilot transfer team, 5000 – 20000 operators and manufacturing folks in assembly in two locations, Philippines and Thailand Supplier: 100s of people in pilot transfer team, 5000 – 20000 operators and manufacturing folks in assembly in two locations, Philippines and Thailand Customer: 1000s of disk drive assembly, engineering, procurement Customer: 1000s of disk drive assembly, engineering, procurement Program management Preparation Co development Technology transfer Logistics and supply chain Specification trade offs Communication Testing and qualification Management approval Program management Preparation Co development Technology transfer Logistics and supply chain Specification trade offs Communication Testing and qualification Management approval Triangular coordination –What it took

14. Strataplex, Inc. Innovations Delivered! Strataplex, Inc. Confidential While most of the Silicon Valley companies, large and small, are based on science and engineering, global operational development is still a fine art that is so critical to success. Thank You! The moral of my story is……