3. 2 BOM and ICN/ECN Training What is BOM Who is handling the BOM Who use the BOM and why need it accurate BOM structure and format Definition of each column in the BOM Standardize the BOM format and content

4. 3 BOM and ICN/ECN Training What is ICN/ECN Why need ICN/ECN Who raise the ICN/ECN Who approve it ICN/ECN format Key points of the ICN/ECN Hint of filling the appendix of the ICN/ECN

5. 4 BOM and ICN/ECN Training BOM: Bill Of Materials To show the relationship of each components of the phone. BOM is the key factor in the whole organization (R&D and manufacturer). What is BOM

6. 5 BOM and ICN/ECN Training HW/ME engineer seek the suitable parts for the BOM. HW/ME engineer apply part number for the new components. HW/ME/NPS engineer raise ICN/ECN if the BOM need changed. NPS is responsible for the BOM accurate. Commodity Manager provide the vendor information and price. DCC is responsible for BOM maintentance according to the ICN/ECN. Who is handling the BOM

7. 6 BOM and ICN/ECN Training Marketing Dept. use it to promote the phone to customer. NPS use it to prepare materials for proto runs. HW/ME engineer use it to analyse the performance of the phone. TOP use it on the production line. QA use it to qualify components. Customer use it to calculate the BOM cost. Customer use it to control the liability issue. OEM use it to buy materials. OEM use it to put materials onto the production line. Who use the BOM and why need it accurate

8. 7 BOM Structure and Format BOM include: Cover, Top 20, Change history, Change list, Main board, Flip board (if any), Back end parts and Explanation. 1.Cover: Project name, Customer name, Date, Version, Contact name for each dept. (The date and version need updated). BOM structure: Need to reflect the real situation of this BOM (include the relationship and the part numbers). 2. BOM cost: The CBOM’s overall cost. 3. Top 20: The cost top 20 items. (Need updated and accurate). BOM and ICN/ECN Training

9. 8 BOM Structure and Format 4. Change history: To show the version, change date, reason, originator, ICN/ECN number. 5.Change list: The detail of each change. We can trace every change from the beginning. 6.Main board, Flip board and Back end parts show the detail of the BOM. 7.Explanation: To explain some definition about the BOM format. BOM and ICN/ECN Training

10. 9 BOM Structure and Format BOM and ICN/ECN Training

11. 10 BOM Structure and Format BOM and ICN/ECN Training

12. 11 BOM Structure and Format BOM and ICN/ECN Training

13. 12 BOM Structure and Format BOM and ICN/ECN Training

14. 13 BOM Structure and Format Package BatteryXCVR Main Board ………….Charger Flip BoardKeypad BoardBack End Parts Top Side Bottom Side Include PCB Top Side Bottom Side Include PCB or FPC Top Side Bottom Side Include PCB or FPC LCD Housing ……….. BOM and ICN/ECN Training

15. 14 Column in the BOM BOM and ICN/ECN Training

16. 15 Column in the BOM BOM and ICN/ECN Training

17. 16 Column in the BOM 1.Assembly level: to show the relationship of the components. 2.Purchase level: to show whether it is a Buy part. 3.Part number: is Techfaith group part number. Centel and STEP have their own part number; Techfaith use vendor’s part number for standard components and Techfaith own part number for designed components. 4.Description: HW and ME dept. is responsible for the completion and accuracy. 5.Reference number: HW dept. is responsible for the accuracy. 6.Quantity: should be the same with the quantity of reference number quantity. BOM and ICN/ECN Training

18. 17 Column in the BOM 7.Top/Bottom (optional, according to each company and customers requirement) : to indicate the component in which side of the PCB. 8.Supplier part number: need include the package information. The accuracy is responsible by NPS and Commodity Manager. 9.Supplier name: is manufacturer name, not distributor or agent name. 10.2 nd source information: The second source must be tested and passed the test and evaluation to replace the primary component without any other change. BOM and ICN/ECN Training

19. 18 Column in the BOM 11.CBOM, unit price: both RMB (CIF, VAT and TAX included) and USD (FOB HK) price needed. 12.CBOM, lead time: From vendor receive order to TFG or our customer receive the goods. Need convert the lead time if vendor provide the lead time with ship date. 13.CBOM, contact information: We can put the agent or distributor’s contact information. BOM and ICN/ECN Training

20. 19 Column in the BOM BOM and ICN/ECN Training

21. 20 Standardize the BOM format and content 1.The same format in Techfaith group. 2.The same content for the same information. Such as: The same vendor use the same name (Fujitsu/Spansion, AVX/Kyocera/Elco). The same vendor use the same contact information (Beijing, Shanghai, Shenzhen). CBOM: The RMB quotation is include VAT and tax. CBOM: The exchange rate of USD and RMB is the same. CBOM: CIF China and FOB HK. CBOM: same Payment term. BOM and ICN/ECN Training

22. 21 What is ICN/ECN ICN (Internal Change Notice): before customer buy materials for production. Only get approval within Techfaith group. ECN (Engineering Change Notice): after customer place order buying materials for production. Need customer sign the ECN before it is effective to avoid materials liability issue. BOM and ICN/ECN Training

23. 22 Why need ICN/ECN To align all departments and customer to the latest BOM. DCC is the key department to keep all related people have the latest BOM and ICN/ECN. To standardize the BOM change process and keep the BOM stable. To let related departments and customer know the change reason and what action need to be taken. To record the change history and change detail for tracking (ISO9001 requirement). BOM and ICN/ECN Training

24. 23 Who raise the ICN/ECN HW, ME, NPS can raise the ICN/ECN according to the real situation. HW: Change the part number, Ref. Number, supplier name according to the evaluation, test and review result. ME: Change the part number, Rev. number, supplier name, assembly level according to the, evaluation, test and review result. NPS: Change the supplier name, part number according to the cost reduction, vendor performance. All these changes must pass engineering evaluation and Commodity Manager confirmation. BOM and ICN/ECN Training

25. 24 Who approve it All related dept. and QA need to review and approve the ICN/ECN. All approvers are responsible for the ICN/ECN’s reason, action, change detail’s correctness. HW/ME: check whether the change is effective, when to implement. NPS: check whether the new component delivery can meet project requirement, whether there is cost change, whether there is any liability issue happened, when to implement. QA: check whether the change meet quality requirement and whether the ICN/ECN got all signatures according to the procedure. BOM and ICN/ECN Training

26. 25 ICN/ECN Format Cover Reason and background of the change Change detail or action need to take Affect other projects? Signatures Appendix Parent part number Part number and description Supplier name Qty changed from and Qty changed to Others BOM and ICN/ECN Training

27. 26 ICN/ECN Format BOM and ICN/ECN Training

28. 27 ICN/ECN Format BOM and ICN/ECN Training

29. 28 Key Points of the ICN/ECN Review whether the change is necessary and whether it is the best way. Review whether the change is effective before raise the ICN/ECN. To fill in the real reason (to solve what problem) clearly. To get the lastest BOM from DCC before fill in the ICN/ECN. To fill in all the related information into the ICN/ECN. To gurantee each information (part number, description, qty, ref. ) is correct before submit the ICN/ECN. Do not cause new error due to the ICN/ECN. BOM and ICN/ECN Training

30. 29 Hint of filling appendix of the ICN/ECN Change component value/Change part number Add/Delete component Change component version Change component’s Ref. Number Change vendor name Change assembly level BOM and ICN/ECN Training

31. 30 Change component value Determine the Change From and Change To value of the component. Check the Change From component qty and Change To component qty from the BOM. Get the part number from NPS, Commodity Manager or Supplier for the Change To component if it is a new one. Fill in all related information. BOM and ICN/ECN Training

32. 31 Add/Delete Component Determine which component need to add/delete. Check the Change From qty and Change To qty from the BOM. Get the part number from NPS/Commodity Manager/Supplier if it is a new component. Fill in all related information. BOM and ICN/ECN Training

33. 32 Change component version Determine which component need to change version. Get the latest version number from DCC. If necessary, apply new part number for the new version component according to the procedure,. Fill in all related information. BOM and ICN/ECN Training

34. 33 Change component Ref. number Determine which component need to change Ref. number. Check the Ref. number of Change From and Change To. Check the qty of the component part number. Fill in all related information. BOM and ICN/ECN Training

35. 34 Change vendor name Determine which component need to change vendor name. Check whether the part number need changed also. If need, apply new part number. Fill in all related information. BOM and ICN/ECN Training

36. 35 Change assembly level Determine which component need to change assembly level. Determine the assembly level of Change From and Change To. If the component has sub components, change the assembly level together. Fill in all related information. BOM and ICN/ECN Training

37. 36 BOM and ICN/ECN Training Tom Wang 2004.9.9 (STEP) 2004.12.30 (Centel)