2. 1 Implementing a Business Management System compliant to ISO 9001:2000

3. 2 What ISO 9001:2000 implies…. Business Management System (Production and HR, Acctg, Engr, Operations, IT, etc) Key Driver is Customer Satisfaction Business System must: Know and Meet Customer Needs Follow Controlled Processes Monitor Process Performance Perform Preventive and Corrective Actions Demonstrate Continual Improvement

4. 3 Eight Management Principles Customer Focus Leadership Associate Involvement Process Definition and Documentation System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationships

5. 4 Customer Focus What Understand customer requirements Meet or exceed customer expectations Why Increased revenues and market share Quick response to opportunities More effective use of resources Increased customer satisfaction Improved customer loyalty & repeat business

6. 5 Leadership What Establish unity of purpose and direction Maintain an internal environment that promotes full involvement of everyone to meet objectives Why People understand and are motivated Activities are implemented and evaluated in a unified way Miscommunication is minimized

7. 6 Associate Involvement What People are the essence of an organization Full involvement enables abilities to be best used for the organization’s benefit Why Motivated, committed and involved people Innovation and creativity are stimulated People are accountable for their own performance People contribute to continual improvement

8. 7 Process Definition and Documentation What Desired results are achieved more efficiently when activities and resources are managed as a process Why Lower costs and shorter cycle times More effective use of resources Improved, consistent and predictable results Focused improvement opportunities

9. 8 System Approach to Management What Identify, understand and manage interrelated processes as a system to improve effectiveness and efficiency Why Focuses efforts on key processes Provides confidence to interested parties in the consistency, effectiveness and efficiency of the organization

10. 9 Continual Improvement What Continual improvement of overall performance should be a permanent organizational objective Why Performance advantage through improved capabilities Alignment of improvement activities at all levels Flexibility to react quickly to opportunities

11. 10 Factual Approach to Decision Making What Effective decisions are based on the analysis of data and information Why Permits informed decisions Increases the ability to demonstrate effectiveness of past decisions through factual records Increases the ability to review, challenge and change opinions and decisions

12. 11 Mutually Beneficial Supplier Relationships What An organization and its suppliers are interdependent A mutually beneficial relationship helps both to create value Why Increased ability of both to create value Flexibility and speed of joint response to change Optimization of costs and resources

13. 12 Selection of ISO Site Representative Complete support of site management team Receive ISO specific training Accountable for building ISO required documentation Coordinate planning sessions Coordinate training sessions Coordinate management reviews

14. 13 Sample Business Policy Statement Our company is committed to enhancing value to shareholders through  Customer Satisfaction  Compliance with Applicable Laws, Regulations and Requirements  Pollution Prevention  Safe Work Environment  Involving our Associates in Continual Improvement of our Business Management System

15. 14 Methodology Identify and Flowchart Key Business Processes Set Strategic Objectives and Supporting Department Objectives Write Procedures and Instructions to Support Processes Implement and Train on Procedures Perform Internal Audits Conduct Ongoing Management Reviews to Evaluate Performance to Objectives ISO Registrar Outside Audit/Certification Review Ongoing Audit, Review and Continual Improvement

16. 15 Methodology Identify and Flowchart Key Business Processes

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21. 20 Methodology Identify and Flowchart Key Business Processes Set Strategic Objectives and Supporting Department Objectives (including personal objectives)

22. 21 Methodology Identify and Flowchart Key Business Processes Set Strategic Objectives and Supporting Department Objectives Write Procedures and Instructions to Support Processes

23. 22 Vault – Receiving Into Vault Doc. #: P08-002 Page 1 of 1 Rev: Draft 1 Date: 12/20/02 Process Owner: Bob SchulteApproved by: Kevin Buchanan

24. 23 Silver Cell Maintenance Checklist Doc.# Page 1 of 1 Rev: DraftDate: 2/1/03 Process Owner:Approved by:

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26. 25 Methodology Identify and Flowchart Key Business Processes Set Strategic Objectives and Supporting Department Objectives Write Procedures and Instructions to Support Processes Implement and Train on Procedures

27. 26 Training Develop job competencies and training requirements for each position Validate level of competency for each associate Introduce and validate each procedure and work instruction to associates

28. 27 Methodology Identify and Flowchart Key Business Processes Set Strategic Objectives and Supporting Department Objectives Write Procedures and Instructions to Support Processes Implement and Train on Procedures Perform Internal Audits

29. 28 Internal Auditing Select group of associates will: Receive internal ISO auditing training Audit outside their home department Audit up to two days each per month Validate documented procedures against practice Generate nonconformances for management follow-up

30. 29 Methodology Identify and Flowchart Key Business Processes Set Strategic Objectives and Supporting Department Objectives Write Procedures and Instructions to Support Processes Implement and Train on Procedures Perform Internal Audits Conduct Ongoing Management Reviews to Evaluate Performance to Objectives

31. 30 Management Reviews Management Team periodically reviews: Audit results Customer feedback Product conformity data Key Process Indicators (KPIs) Suggestions and recommendations Analysis of failures Preventive/corrective actions

32. 31 Methodology Identify and Flowchart Key Business Processes Set Strategic Objectives and Supporting Department Objectives Write Procedures and Instructions to Support Processes Implement and Train on Procedures Perform Internal Audits Conduct Ongoing Management Reviews to Evaluate Performance to Objectives ISO Registrar Outside Audit/Certification Review Ongoing Audit, Review and Continual Improvement

33. 32 Site Management Team Action Assignment of fulltime dedicated ISO Management Representative with complete support of site managers Develop objectives supporting the business policy statement and company strategic goals Communicate policy and objectives down through the organization

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38. 37 The Business Management System is ISO 9001:2000 compliant when we… Document what we already do Ensure we are in accordance with established procedures Prove we operate to our own documented system Continually improve