Flextronics Infrastructure Montreal Lean Maturity – Plan going forward 2008

Assumptions These 5 areas will be the focus of our Lean deployment plan. The Lean maturity tracker will be updated according to these production cells : PCBA OME 5.0 OM5K Field Repair (LH/DX) Shipping/Receiving/Stockroom All new customers/products introduction will incorporate the best practices from Day 1 How to read : Current score Target   1 2 3 4 5

Lean Maturity Tracker - Guidelines I) Lean Leadership   Competency Building (ECD : Q2 2008) 1 2 3 4 5 Provide Lean training to at least 70 % of employees Material to be used : lean awareness & simulation (simulation to be developed internally)   2) Plant Leadership (ECD : Q4 2008) 1 2 3 4 5 Develop Site Lean Vision (ECD : Dec 2007); communicate through GIS and line managers Provide Lean training to at least 60 % of GM & Senior Manager; training plan (Japan tour ?) See possibility to contract training, specific for managers (Mckenzie, Createch, …) For each senior manager, identify the 3 kaizen for 2008 in which he will participate   3) Line leaders (ECD : Q2 2008) 1 2 3 4 5 For the line leaders of the target cells Provide lean training according to kaizen plan Identify at least 1 kaizen per year for the Line Leaders to participate List the best practices shared between value stream

Lean Maturity Tracker - Guidelines I) Lean Leadership (cont’d)   4) Driving Change & Boundary less (ECD : Q2 2008) 1 2 3 4 5 Update Production Playbook to incorporate Lean practices as they are developed Identify at least 1 process to be improved for 50% of function. Proposed : Planning & purchasing : ECO process Customer service : Order sequencing Finance : Process for non-moving material Eng : NPI process II) Lean Fundamentals   5) Value Stream(Q4 2007 - Q1 2008) 1 2 3 4 5 Update Value Stream for : OME 5.0, OM5K, FR, Alcatel, Aethera, Blade, Verint, SMT, Receiving, Shipping This should make more than the 50% required for Level 4   6) 5S (ECD : Q2 2008) 1 2 3 4 5 Implement complete 5S to score > 41% for : SMT, OME 5.0, OM5K, FR and stockroom/receiving Pilot on OM5K

Lean Maturity Tracker - Guidelines II) Lean Fundamentals (cont’d)   7) Supermarket (ECD : Q2 2008) 1 2 3 4 5 Target to score 3 out of 5 on all items For target cells : 2-bins pull system, PFEP, standard work for water spider, visual management NVA reduction : kaizen planned for receiving and shipping (Q1 2008)   8) Visual Management (ECD : Q1 2008) 1 2 3 4 5 Standardize communication boards for target cells Standardize performance metrics to be posted Define a standard way to register actions and to react to them III) Heijunka   10) Level Load (ECD : Q4 2008) 1 2 3 4 5 Get best practice from Flex Corp. and deploy Document the standard process to level the production in order to meet 95% of the demand Link with “visual management system” developed in NGM and OME Best practice applicable to all cells   11) Sequencing: (ECD : Q2 2008) 1 2 3 4 5 Potential kaizen with Shingijutsu on Heijunka (Q1 2008) Establish/Document a method for sequencing jobs at : SMT, production cells and shipping

Lean Maturity Tracker - Guidelines IV) End To End (ETE) Pull with Zero Defect Production   12) Change Over (ECD : Q1 2008) 1 2 3 4 5 Assumptions : Only on SMT lines Level 3 : Need to see if we can achieve setup time < 20 min For this year : reduce setup time to be < 75% of baseline (kaizen in Q1 2008) ?? 13) Line Config & Productivity (ECD : ?) 1 2 3 4 5 Need to understand the expectations for this requirements ?? 14) Zero Defect Lines (ECD : ?) 1 2 3 4 5 Need to understand the expectations for this requirements No definition of the auto-quality tool and list of requirements not provided  ! 15) End To End Pull:(ECD : Q4 2008) 1 2 3 4 5 Level 3 achievable, since most requirements for SMT Lines and shipping Need to work on the forecast vs customer orders Need to agree on a strategy since we don’t build to stock for all the products High level of effort required to meet this requirements

Lean Maturity Tracker - Guidelines IV) End To End (ETE) Pull with Zero Defect Production (cont’d)   16) Takt Time (ECD : Q1 2008) 1 2 3 4 5 25% of product build to takt : SMT, OME 5.0, OM5K, FR & all new customers Takt shown on LCD screen; calculation rules for Takt and pitch clearly defined Need to identify pacemakers for all these cell; link between pacemaker capacity and Takt V) Jidoka   17) Stop@ Every Abnormality (ECD : Q2 2008) 1 2 3 4 5 For target cells establish “stop line rules”; (establish link with TS rules, limit of time, …) Stop line issues, actions, owners and dates are visible at the Shop Floor level; link with visual management   18) Autonomation: (ECD : Q2 2008) 1 2 3 4 5 Kaizen on Autonomation on PCBA with Shingijutsu (Q1 2008) Minimum requirement is evidence of work on autonomation and sharing our experience; PCBA – minimum for 2008 plan; some potential on OME 5.0 Experience will be shared on Lean Mfg best practices meeting, every Thursday