1. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 31 Project Idea Feasibility Study Brief phase of project start Design Phase HW Platform Evaluation Phase HW Platform Alpha Phase HW Platform Beta Phase PreProduction Phase Mass Production Brief phase of project completion Iter of a new product project The main stages of a new product project are as follows:

2. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 32 A macro phase exists before the start of the project where all the activities necessary to obtain the know-how to develop the product are included (Know how phase). This can derive from one or more thematic projects or be a prosecution of them. Iter of a new product project

3. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 33 The idea derives from a market demand or from a "technology - push" proposal from the technology departments or from a customer requirements. Then a company commission decide whether to go or not. Iter of a new product project - Project Idea

4. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 34 This is an activity aiming to verify the convenience or not to start the project. This is a task typically performed according to the project management tools (risk management, budget evaluation, Return to investment and payback period estimation, human resources availability, time schedule evaluation and comparison with the time to market). Iter of a new product project - Feasibility Study

5. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 35 In this phase thematic projects are also considered or even new ones can be opened. Other strategic decisions can derive in this phase such as components choice. The Idea and "Feasibility" are right before the project activity. Between the "Feasibility" and the project start a certain time can occur and some thematic activities can be decided to be performed in advance. Iter of a new product project - Feasibility Study

6. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 36 Brief Phase of Project Start. In this phase the project manager and the project team are decided. Some documents are delivered such as the product and project specifications, the time schedule, the project organisation breakdown, the quality plan. Then a Kick Off meeting is necessary to officially open the project. Iter of a new product project - Project start

7. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 37 The next phases are the Project macro phase. This is intended as all the tasks necessary for the development of the new product. From the project start the "Concurrent Engineering" philosophy is followed: the aim is to reduce the lead time trying to start the activity in advance when a certain security has been achieved to have the right inputs. Iter of a new product project

8. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 38 During this phase all the design activities are performed. It is the most critical phase where a mistake can propagate its consequences on all the project. Iter of a new product project - Design Phase

9. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 39 HW Platform Evaluation Phase: This phase gets the name from the HW platform used for the first SW integration. Usually is part of a thematic project or even a separate thematic activity. This is a completion of the Design Phase where all the HW is assembled for the first time. In this phase the HW estimation is performed. Most of the critical issues must be solved during this phase and a Design Review is the completion of the task. Iter of a new product project - EVB Phase

10. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 40 HW Platform ALPHA Phase: This is the phase when a first full prototype is delivered. This is used for verification and validation applicable on a final product. To perform in advance the tests more prototypes of a similar shape are developed but simple in principle in order to reduce the time for production. The PCB is closed into a container of size and shape similar to those of a final product. Iter of a new product project - ALPHA Phase

11. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 41 HW Platform BETA Phase: During this phase the final prototype is developed and issued for pre - production. It is sequentially linked to the Alpha Phase but it is desirable to start in advance when some results have been achieved in the previous phase. Iter of a new product project - BETA Phase

12. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 42 The prototypes developed are enough for tests, validation and "Type Approval". A "Design Review" is the phase completion. The aim of this phase (one of the longest) is the completion of "Type Approval", HW and SW test and validation while the pre - production phase starts. Iter of a new product project - BETA Phase

13. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 43 In this phase the mass production is prepared. As many products as they can be enough to complete the setup of the production process and to complete validation are realised. This phase starts after the Beta Phase and the deliverable is the decision to proceed or not towards mass production. The duration of this phase depends on the hundreds parts to be developed and validated. A "Design Review" is the conclusion of this phase. Iter of a new product project - Pre Production

14. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 44 Mass Production: This is the start of the industrial production and the end of the R&D activities. This coincides with the issue of the product. Brief phase of project completion: This is a short period when the project is declared in "phase out". Iter of a new product project - Mass Production

15. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 45 Iter of a new product project - Example

16. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 46 Project control & reporting Each project or programme of projects is periodically monitored according to the principle of Project Management. The project leader together with the Business Management and Planning Office will check the necessary information for an overview of the project. All the data are stored in databases and manipulated using customised tools (specific programs, macros, etc.)

17. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 47 Project control & reporting The result of the work is the delivery of a project progress status report. The project status report is strictly a project management document. Any technical information is only mentioned as an annex document. The project progress status report contains the following information:

18. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 48 Project control & reporting Project Milestones or Master Schedule in Gantt chart format; Project Progress Status (description of the status with indication of critical paths, actions and so on); Critical Issues (Description of all the critical points in table format. For each critical point the related product part or Work Package, the name and the department of the reference, the proposed recovering action, the critical point description, when the recovering action has been performed, are mention);

19. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 49 Project control & reporting Linked Projects (List in table format of all the projects which are output or input of the present one. Each linked project can affect the present project in terms of milestones, required features, etc. This refers back to the multi-project concept mentioned before); Time schedule (Analysis of time schedule with comparison between baseline and revised start and end dates) Project Cost (Analysis of the project cost by comparison between budget and revised cost. A list of the last revised detailed budget must be provided with indication of the Number and Date of the Investment Request, Order Emission, and Invoice - if possible). Also provide a comparison between budget and actual for each category of costs as shown in the following table.

20. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 50 Project control & reporting

21. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 51 Project control & reporting If possible provide also the Gantt graph showing the main milestones related to investments and people recruiting moments.

22. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 52 Project control & reporting Human Resources (information on the project team in a chart format are provided. Analysis of the human effort on the project by comparison between budget and revised allocation. Specification of the budgeted man-months, the actual man-months and the man-months necessary to completion. A chart with the cost distribution per month referring to the budget, the actual effort and the final estimation and also a cumulative chart showing the progress are also included in the document); Project Summary (a table including all the main data mentioned in the report).

23. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 53 Human Resources Human Resource effort is control according to the following procedure. Budget data (manmonths) derives from the schedule and are confirmed by the project leader Actual data are requested every month to the department leader and are checked by the project leader during the reporting moment Data are stored and report are prepared by the Business Management & Planning Office

24. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 54 Human Resources Actual human effort data stored in database through a macro application.

25. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 55 Human Resources Human effort on projects can be monitored or updated through macro application (original data deriving from MS Project and the macro application for actual effort).

26. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 56 Human Resources Report on human effort are available through a macro application (data from the human resources database).

27. Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste 15.11.2001 Author: M.Fragiacomo, D.Protti, M.Torelli 57 Product BreakDown Structure