1. Partnering with Suppliers on Continuous Improvement Page Brown, Global Procurement Engineering Manager

2. 2 National Instruments Vision “To do for embedded what the PC did for the desktop.” “To do for test and measurement what the spreadsheet did for financial analysis.” Graphical System Design Industrial & EmbeddedTest & Measurement

3. 3 Customer-Defined PC-Based Measurement and Automation Solutions Traditional Vendor-Defined Instruments What is Virtual Instrumentation? Processor RAM Real-Time OS Real-Time OS Display Power Supply Power Supply Hard Disk Plug-in DAQ Card

4. 4 Numerous Virtual Instrumentation Platforms PCI, PCI Express, USB, IEEE- 1394, ISA PXI & PXI Express PCMCIA Compact RIO Compact Field Point, Field Point PDA

5. 5 PXI Adopted by Wide Range of Industries Consumer Electronics Military & Aerospace Automotive Communications SemiconductorMedical

6. 6 NI Supplier Quality/Component Engineering Resources NIC: 3 Component 1 Supplier Quality 2 Supplier Quality Proc. Technology Mgr Proc. Eng Manager NIH: 2 Component 1 Supplier Quality Working Team Lead NI Shanghai: 1 Supplier Quality NI Asia: CE & SQE support planned * = New Addition

7. National Instruments Confidential Supplier Quality Improvement 2008 Projects 1. Root Cause Analysis & Perm. Corrective Action 2.Critical Component Verification and Monitoring 3.New Product Introduction Supplier Assurance 4.Critical Commodity Quality Improvement 5.Supplier Quality/Component Engineering Resources

8.  Goal: Prevent recurrence of problems  Method : 6-Step Root Cause - Corrective Action problem solving #1 Define Problem; Facts, data, 5W1H #2 Contain Problem; Hold, Inspection Fix #3 Analyze Root Cause; Why-Why #4 Develop Corrective Actions; Brainstorm #6 Apply Lessons Learned; Brainstorm #5 Implement Corrective Actions; Plan-Do-Check Root Cause Analysis Methodology Important Note: 8D forms don’t always = Robust CA

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10.  Goal: Prevent recurrence of problems  Method : 6-Step Root Cause - Corrective Action problem solving #1 Define Problem; Facts, data, 5W1H #2 Contain Problem; Hold, Inspection Fix #3 Analyze Root Cause; Why-Why #4 Develop Corrective Actions; Brainstorm #6 Apply Lessons Learned; Brainstorm #5 Implement Corrective Actions; Plan-Do-Check Root Cause Analysis Methodology Go physically investigate Understanding the process is critical Mutual benefit

11.  Supplier Development: NI staff will provide on site training  Method : Actual problems specific to the supplier will be used #1 Define Problem; Facts, data, 5W1H #2 Contain Problem; Hold, Inspection Fix #3 Analyze Root Cause; Why-Why #4 Develop Corrective Actions; Brainstorm #6 Apply Lessons Learned; Brainstorm #5 Implement Corrective Actions; Plan-Do-Check Supplier Adoption

12. NI – Supplier Quality Partnership NI is investing in it’s Reliability and Support areas Suppliers will need to keep up Working together will yield X 2 results  Education and training  Fast, thorough exchange of information  Exchange of best practices