QUALITY PROCESS & GUARANTIES

QUALITY PARTS

-Quality today is the n°1 requirement and the N°1 problem QUALITY PARTS

-IC 100 TQM Total Quality Management System

-Quality problems can cost much more than the parts

-TMS guarantees quality 4 separate ways

-Source selection to find Original Sources

-Parts inspection and testing with the N°1 independent laboratory in Europe, SERMA

-Product Liability Insurance with Europe’s largest insurance company

-TMS keeps on searching for new solutions against counterfeit parts by participating in world conferences and work groups on the subject

EXCESS INVENTORY MANAGEMENT

0 Customer claims against the TMS product liability insurance policy for over 19 years 0 claims from TMS clients open at 31/12/2018 0 rejects of tested parts delivered to TMS clients

0 rejects of Original Source parts delivered to TMS clients

TMS has received 2 international Prizes for its Quality Management: Quality Summit Award in New York 2002, Century international Quality Award in Geneva 2004

TMS operates a TQM System (Total Quality Management) covering all aspects of the company ( parts quality, but also logistics, administration, data processing

LIABILITY INSURANCE CERTIFICATE

LIABILITY INSURANCE CERTIFICATE The results : Zero customer claims against the TMS product liability insurance policy over 19 years

EUROPEAN LABORATORY

Date code Identification

Risk assessment : co planarity, ESD, MSL

Visual inspection on 20 components according to packing parameters

X Ray exam on 10 components according to packing parameters

Electrical Static Parametric I(V) Test on 10 parts (Inputs/Outputs vs Ground) or equivalent

Scanning Acoustic Microscopy (plastic packages) on 3 components

Component decapsulation and die markings identification

ASIAN LABORATORY

LEVEL-I Authenticity Inspection & Verify

LEVEL-II DC Characteristic Test

LEVEL-III Key Functional Test

LEVEL-IV Full Functional and Characteristic Test

LEVEL-V Alternating Current Characteristics Test

LEVEL-VI Special Environment Analysis & Test

LEVEL-EXI ROHS Criteria (Lead-free) Test and Analysis

LEVEL-EXII Solderability Test and Analysis

SERMA TECHNOLOGIES

TMS QUALITY PHILOSOPHY

In keeping with the TMS philosophy of PPQS (Parts, Prices, Quality and Service), TMS has adopted the following guidelines: TMS will adopt the quality standards that each of its large customers may require. In the absence of a specific quality requirement, TMS will perform by default to its own standard as described and updated from time to time in the TMS Quality Manual TMS identifies the requirement placed upon it by its customers as a requirement for Total Parts Performance, and also for Total TMS Performance. In keeping with this, TMS gears its Quality System to ensure that each Lot of Parts supplied to customers has been dealt with In accordance with the Client’s requirements AND in accordance with TMS Quality Requirements if they happen to exceed the Client’s AND with Best Practice in the Profession if they happen to exceed the Client’s and/or TMS Quality Requirements

TOTAL QUALITY MANAGEMENT

TMS has made the strategic determination to operate with a TQM system (Total Quality Management System) designated as QC100.QC 100 identifies 100 areas where the TQM system must govern how TMS performs relevant operations. In particular QC100 extends to all areas of TMS operations and not only Parts Quality. QC100 encompasses Sales, Marketing, Purchasing, Logistics, Finance, Human Resources, Data Processing, General Management.

PERFORMANCE-BASED QUALITY STANDARD​

TMS has made the strategic determination that it will operate to a standard that is Performance-based and not Process-based. As such, it cannot adopt the Process-based ISO standard. For TMS to adopt the ISO approach would mean that Any number of suppliers would remain unavailable to TMS and its Customers, as each one would have to be individually approved. That is a lengthy Process, required to provide the “Chain of interlocking Approvals” that is the backbone to the ISO Process. If TMS identifies Parts that are of urgent interest to one of its Customers, TMS’s mission is to find how to procure those Parts expeditiously and assure that the level of Quality of these Parts conforms with Customer Requirements and/or TMS Quality Requirements. TMS customers do not always have enough time available for TMS to ensure that such a new Supplier meets TMS Quality Requirements. Leaving Supplier Approval out of a ISO approval would make such an approval essentially meaningless, as it would deal with basically administrative issues and not with the critical Quality Assurance of Parts TMS would be more concerned with the Public Relations aspect of Quality than with actual performance. Securing a limited ISO approval is relatively easy and relatively meaningless. TMS considers that this would give customers a false sense of comfort regarding the Quality of Parts they would be receiving. Such a false sense of comfort represents a violation of the TMS Quality Policy as detailed in the TMS Quality Manual TMS would be unable to function to a Customer’s Quality Standard if it did not comply with it own Quality Standard An ISO approval is designed for companies that operate on a repetitive basis to ensure constant performance, whereas TMS operates on an obligation to perform with a variable modus operandi 100% Parts Performance Standard

TOTAL QUALITY MANAGEMENT

TMS has made the strategic determination to operate with a TQM system (Total Quality Management System) designated as QC100.QC 100 identifies 100 areas where the TQM system must govern how TMS performs relevant operations. In particular QC100 extends to all areas of TMS operations and not only Parts Quality. QC100 encompasses Sales, Marketing, Purchasing, Logistics, Finance, Human Resources, Data Processing, General Management.

TMS TREATMENT OF INCOMING PARTS

TMS segregates incoming Parts based on 2 Criteria. The first Criterion is Supplier Identification. The second Criterion is Parts Packaging.

Supplier Identification. TMS has determined that its Suppliers shall be grouped in 2 Supplier Groups. One is made of Parts Manufacturers, Manufacturer’s Agents, Manufacturer’s Authorized Distributors. The second Group is made of all other Suppliers: independent Distributors and Brokers, all Supplier of Excess Parts (OEMs,CEMs). Parts Packaging.

TMS has determined that the Parts Packaging shall be grouped in 3 Groups. One is made of Original Factory-Sealed Packaging. The second Group is made of Non-Original Packaging; The third Group is made of Non-Conforming Packaging. In accordance with these groups, TMS applies the following Processes to Incoming Parts Upon receiving, ALL Parts are subject to the following Processes: Visual Inspection of each and every identified Package and/or Lot. The result of such Inspection is entered into an Inspection Report Visual Control of Goods Received, and checking against TMS Requirements. This Control all visual aspects, including but not limited to number of Lots, and Lot N°s, Presence of Labels, Appearance of Labels, Content of Labels, Packaging Type, Date Codes, Provenance. The result of such Control is entered into a Control Report A Digital Record is made of a visual Aspects of the Incoming Parts, including Packaging, Labels, Date Codes.

Such records are transmitted to TMS and stored securely. If the Incoming Parts are in the Original Factory-Sealed Packaging Group, no further Control is effected, unless the Customer has placed a Special Customer Requirement upon TMS If the Incoming Parts are in the non-Original Packaging Group, AND the Incoming Parts come from the Supplier Group of Manufacturers, Manufacturer Agents, Manufacturer’s Authorized Distributors, no further Control is effected unless the Customer has placed a Special Customer Requirement upon TMS If the Incoming Parts are in the non-Original Packaging Group, AND the Incoming arts come from the Supplier Group of independent Distributors and Brokers, all Supplier of Excess Parts (OEMs,CEMs), a quantity of Parts is taken as a Sample, shipped to TMS and stored securely. If any of the above Inspections and Controls has generated any Deviations from the TMS Quality Standard, such Deviations shall be reported, and Corrective Action shall be taken based on the TMS Quality Manual. Such Corrective Action may include: Correction of Quantity, Rejection of Quantity, Rejection of Packaging, Rejection of information, Rejection of Parts, rework of Packaging, Rework of Information.

Another consequence of the above Inspection and Controls may be Testing of Incoming Parts. Testing may also be conducted based on a Special Customer Requirement. It may also be based on a TMS Testing Requirement Such testing has to be conducted by a TMS-approved Testing Supplier. At this time TMS has approved LCIE (Laboratoire de Contrôle des Industries Electroniques) of France as testing Supplier. LCIE is part of the worldwide VeritasGroup. LCIE have a Branch operating in Shanghai, PRC. Such tests may include: X-Ray, electrical testing, testing to Manufacturer Specifications