Gilbarco Printer Assembly Process Flow Overview Next Generation Contract Manufacturing

Flow Chart ReceivingReceiving inspection MRB Pass Inspection No yes Inventory / stagingKitting / assembly Inspection / TestPack / Ship Next Generation Contract Manufacturing

Receive Raw Material into ERP Material procured from Approved Suppliers only Suppliers to ship ESD sensitive components in ESD protective shipping containers All containers to be clearly marked with ESD warning labels Verification of Supplier, Part Number, Purchase Order Number, and Quantity Receipts entered into ERP system by PO number. Move to Receiving Inspection Next Generation Contract Manufacturing

Receiving Inspection Sample Inspections performed on incoming material based on AQL ICT and continuity tests on all electronic components, performed by supplier Certificate of Conformance (CofC) to accompany all lots of incoming components requiring test UL approved components to be clearly marked with UL label UL documents to filed in Receiving Inspection Electronic Vendor History cards track vendor incoming quality performance Next Generation Contract Manufacturing

Receiving Inspection continued… On-line password protected Receiving Inspection Instructions Electronic link to Gilbarco provided component specifications Controlled hardcopy component specs located in Receiving Inspection files Highlighted critical characteristics for sample inspection Next Generation Contract Manufacturing

A ny material not conforming to RPN’s inspection requirements will be properly identified as defective material and moved to MRB. Material will remain in MRB until the appropriate disposition can be determined. If material is rejected due to non-conforming characteristics which are not listed on the component RII, the non- conformity will be added to the RII for future inspections. Per RPN’s quality system, a Supplier Corrective Action Request (SCAR) will be initiated for any component rejected at Receiving Inspection. MRB Next Generation Contract Manufacturing

Inventory / Staging Material passing inspection is moved to inventory staging area All material is moved using the appropriate ESD precautions ESD caution labels remain on sensitive components until assembly High percentage of material stored at point-of-use locations (B and C items) Remaining components staged in designated kitting area adjacent to manufacturing Material transported in ESD totes and metro carts Next Generation Contract Manufacturing

Kitting / Assembly T he assembly process will be driven by a pull system. Material handlers will kit and deliver components for assembly using kanbans. As material stored at point-of-use locations is depleted, metro carts containing kitted items will replenish empty carts on a continuous basis. A ssemblies will be transported from the assembly workstation to final inspection and test using ESD protective totes and conveyers. Next Generation Contract Manufacturing

Manufacturing Process Ergonomic workstations w/ supplemental lighting ESD mats and wrist straps Daily ESD tests and test logs Point-of-Use inventory / Kanban One-Piece-Flow 5S Conveyer system for material transport Next Generation Contract Manufacturing

Manufacturing Process continued… O perators will assemble the printer assemblies using tightly controlled on-line work instructions. Instructions will include workmanship standards, inspection and test criteria, packaging instructions, and bill of materials. CAD drawings and digital photos will be used as visual aids to ensure built-in quality. T he initial step of the work instructions will be to apply a bar coded serial number label to each unit for component warranty and product traceablility. Next Generation Contract Manufacturing

Final Inspection and Test 100 percent functional test on all units 100 percent visual inspection on all units Inspection data captured on-line, real-time Web-based reporting on: - Defect Pareto Analysis - DPM - Product Yield - Labor Standard Next Generation Contract Manufacturing

Packaging / Post-Pack Audit Completed assemblies to be packed using JIT carts provided by Gilbarco RP Network to maintain safety stock for demand fluctuations KanBan / FIFO material management methods Outgoing quality to be monitored using random post-pack audits Next Generation Contract Manufacturing

Next Generation Contract Manufacturing