TL 9000 Quality System Overview Michael Boyd

The TL 9000 Quality System Model TL 9000 has all of the elements of ISO 9001, but with added Focus on product testing and quality Focus on customer services & relationships Focus on defined measurements (Benchmarking) Goal of Improving HW/SW Products and Services for the Telecommunications Industry Customer and Supplier Input Product Lifecycle Model Management Review Quality Improvement

Bests Practices – People, Processes, Systems iDirect is structured on the TL 9000 Quality System

Vision & Results for Implementing TL 9000

TL 9000 Companies Best-in-class companies who have adopted the TL 9000 QMS Equipment Providers: Motorola, Alcatel, Cisco, Juniper, Lucent, Nortel, Ciena, NTT, Siemens, Tellabs, Unisys Manufacturers: Corning, Huawei, Intel, JDSU, Xilinx Carriers: Verizon, AT&T, BellSouth, British Telecom Standards: TUV, Telcordia, UL

Our Competition ViaSat – ISO 9001 Certified Hughes Networking Systems – ISO 9001 Certified No other competition has a certified quality system iDirect will have both the ISO 9001 and TL 9000-H,V Certifications

iDirect’s TL 9000 Quality Management System Scope iDirect Operations ISO 9001:2000 and TL 9000-H,V Satellite Systems Manufacturing and Test Customer Support Service Repair Service Training Installation

TL 9000 What We’ve Accomplished Systems Implementation Remedy – Customer/Product Technical Issue Tracking Agile – Product Lifecycle; Documentation, Product BOM Control Oracle – Order & Inventory Management; Financials Measurements System Tracking TL 9000 Measurements Tracking company KPI Measurements through on-line reports Send monthly performance reports to iSupport customers Process Documentation >60 documents to support the ISO 9001/TL 9000 requirements New Product Introduction X-functional meetings Design & Requirements Reviews Improved Validation Testing Added ‘TAC Validation’ step for new SW/HW releases 1 st Article Quality Inspection, prior to first customer shipment (FCS) Tech Pubs customer-facing documentation review 8D Corrective Action Process Formal Root Cause-Closed Loop Corrective Action Process – Agile

TL 9000 What We’ve Accomplished Internal Audit Program We continually assess our own internal people, processes, and systems and make corrective change, where needed. Technical Out of Box Audit Inspections Continually sample new inventory for quality compliance. Customer Support Processes World-Class TAC for technical call center support, network upgrades Leveraging Remedy for Customer web-based requests, issue escalation & tracking SLA control & measurement in Remedy to support “iSupport Program” Automated customer feedback via Remedy s, customer satisfaction, & crystal reports RMA Process Refined process leveraging Remedy (customer & supplier input) Reduced RMA MTTR measure from 4-6 months to 12 days

TL 9000 What We’ve Accomplished Global Field Services & Support Documented and integrated programs and processes, that are measureable Customer hub installations, program management, training, technical pubs Manufacturing and Test Documented and integrated set of processes for controlling product mfg that includes: Planning, Purchasing, Manufacturing, Test, Quality, and Logistics Our Contract MFG (Plexus) is integrated within iDirect’s processes and systems Contract MFG are monitored, measured, and audited Product BOM & Documentation Revision Control Contract MFG are tied directly into our Agile system  change efficiency Single-source of the truth in the Agile system

Quality

Quality Policy

Design for Quality – Product Lifecycle

Agile: Quality Management Issues Deviations 8D Corrective Actions Stop Ships The processes above are managed in Agile through Review & Signoff Each can be associated to any item (Part or Document) in the Agile system

8D Corrective Action Process Formalized process of problem resolution (Agile – 8D CAR) 8D (8 Gate methodology) Problem Definition Problem Measurement (Impact in %, $) Containment (Stop Ship, Inspection & Sort) Root Cause (Product/Process Investigation Cause(s)) Corrective Change (Rework or Replacement) Preventive Action (Process Improvement/Control) Monitor (Satistical Process Control-SPC, Audit) Summary (team congratulations, post mortem)

Quality Improvement Program DOA Reduction Out of Box Audit (OOBA) Sampled inspection on FGI (warehouse goods) Customer Satisfaction TAC Service RMA Service Training Service Component Replacement Reduction Flash (U118)

Supplier Quality Supplier Qualification Questionnaire Audit Qualification Build & Review Manufacturer Quality Plan Documented Plan in Agile Manufacturing Quality Report Bi-weekly yield and issue reports Manufacturer Performance Metrics: Supplier Scorecard

2008 Operations Performance Review Michael Boyd

Enterprise Performance Measurements (ePM) Dashboard Current as of 7/7/08 9 AM est

Customer Satisfaction 3 key surveys Also, track Training Satisfaction

Customer Satisfaction Goal = 89

Customer Training Satisfaction

On Time Delivery Goal = 98%

Service Level Agreement (SLA) Goal = 95%

RMA MTTR Goal =< 10 Days

iNFINITI Product Return Rate Goal =< 1.0% 2008 YTD = 0.20% Early Return Index (ERI) = 0.31% (12/1/07 – 5/31/08) 12 month Return Index = 0.60% (7/1/07 – 6/30/08) -Shipments: 34,610 -Returns: 206