A Systemic Approach to Hazardous Substance Management

1. A Systemic Approach toHazardous Substance Management Hazardous SubstanceProcess Management QC 080000 IECQ HSPM Randy Canfield CEO/Pres. SBGi Institute IECQ HSPM ASQ Mar 07

2. The Macro Trends • Growing amounts of hazardous substances are finding their way into products and the processes that produce them • Discarded products are creating new hazards to humankind and the environment • Humans and consumers are beginning to demand environmentally-friendly products and safe disposal processes IECQ HSPM ASQ Mar 07

3. The Macro Trends • Governments are beginning to demand by law and trade restrictions that hazardous materials be managed and reduced • A patchwork of laws and restrictions is emerging around the world and within the U.S. • Industry will need to respond to consumer and governmental demands IECQ HSPM ASQ Mar 07

4. The Role of Standardization • Standardization of Technical Requirements • Standardization of Conformity Assessments IECQ HSPM ASQ Mar 07

5. Standardization of Technical Requirements • IEC – International Electrotechnical Commission • TC – 111 Environmental Standardization for Electrical and Electronic Products and Systems • TC – 207 Environmental Management Systems (EMS) • JSA – Japanese Standards Association • TISI – Thai Industrial Standards Institute • ANSI – American National Standard Institute IECQ HSPM ASQ Mar 07

6. Standardization of Conformity Assessments • In electronics, numerous conformity assessment groups have been assembled over many years • IECQ - International Electrotechnical Commission Quality Assessment System for Electronic Components • NAI – National Authorized Institutions • SI – Supervising Inspectorate IECQ HSPM ASQ Mar 07

7. Laws Regarding Hazardous Substances • EU RoHS • EU WEEE • California USA SB50 (WEEE) • California USA AB 48(RoHS) • China Ministry of Information Industry Order #39 • Korea & Japan - pending IECQ HSPM ASQ Mar 07

8. Time schedule for WEEE and RoHS IECQ HSPM ASQ Mar 07

9. Exemptions • There are exemptions • But no company is free of impact • False reality = Reliability Risk • Component Manufacturers world wide are producing HSF products • You must know the Hazardous Free status of every component that you purchase IECQ HSPM ASQ Mar 07

10. Financial Implications • Huge fines exist for legal violations • Liability follows trail back to producer of products and parts suppliers • Financial responsibility follows product from “womb to tomb” – from design through disposal • “Be a manager, go to jail.” principle emerging (In the USA) IECQ HSPM ASQ Mar 07

11. Catastrophic Consequences • Sony • DTI - RoHS Enforcement Guidance Document released • Greenpeace testing major manufacturers products IECQ HSPM ASQ Mar 07

12. Environment of Testing & Audits • Industry spending millions of dollars testing incoming parts and outgoing products • Companies sending suppliers very long (costly) questionnaires • Documents requiring company officers to sign letters certifying aspects of products are creating personal liability IECQ HSPM ASQ Mar 07

13. The IECQ HSPM Solution • IECQ HSPM – Hazardous Substance Process Management to QC 080000 • An internationally agreed specification for companies to be certified by third-party assessors that their processes to manage, minimize and/or eliminate hazardous substances meet the highest standards • IECQ HSPM incorporates as applicable RoHS, WEEE, SB-50, etc and the principles of ISO IECQ HSPM ASQ Mar 07

14. IECQ HSPM Certification • Provides systemic framework to demonstrate compliance with laws and industry standards • Indicates company’s desire to be world-class and to do the right thing! • Facilitates access to global markets • Creates a competitive advantage IECQ HSPM ASQ Mar 07

15. Where to Start • Key executives and operations managers need to become aware of pertinent laws and IECQ HSPM • Operations managers and key employees need to know more to become “implementers” • Companies will need some employees to be educated and certified as internal assessors IECQ HSPM ASQ Mar 07

16. What Next • Integrate QA & EH&S resources to Implement IECQ HSPM • Get qualified help as needed • Train internal staff • Engage 3rd party assessor to get certified • Require/Encourage/Help suppliers get IECQ HSPM certified • Be a pacesetter in moving the world toward a hazardous substance free future IECQ HSPM ASQ Mar 07

17. The Future • IECQ HSPM provides an expandable, systemic framework for the future as: • More substances are designated “hazardous” • More laws and regulations emerge globally • Exemptions are reduced or eliminated • Public and governmental demands will increase for an ever “greener” world IECQ HSPM ASQ Mar 07

18. Contributing Companies The Boeing Company Northrop-Grumman Honeywell Philips Semiconductor Rockwell-Collins GE BAE Systems Control Avnet QinetiQ Technology Electronic Industry Alliance (EIA) OmniCell Contributing Industry Programs Sony Green Process Ricoh Green Process HP Green Process Motorola Green Process Key Contributors to QC 080000 IECQ HSPM IECQ HSPM ASQ Mar 07

19. IECQ HSPM Certification Value Proposition • Levels the playing field • Internationally recognized certification • Reduces overall management cost • Builds on existing QMS IECQ HSPM ASQ Mar 07