Product Change Notification (PCN) Training For Manufacturers FEBRUARY 2012 REVISION B

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1 Product Change Notification (PCN) Training For Manufacturers FEBRUARY 2012 REVISION B

2 Disclaimer

3 Training Objective Product Change Notification (PCN) Training for Manufacturers is intended for all Flextronics Manufacturers. The Training Is Designed To: Inform Manufacturers About Flextronics Product Change Policy And Disclaimer Identify Manufacturer Responsibilities Regarding Product Change Notification Management Define Reportable And Non Reportable Change Requirements (Interchangeable And Non Interchangeable Changes) Document Key Information Required For Generating PCNs Coach Manufacturers On When And How To Notify Flextronics Of Changes (Temporary Or Permanent) Being Made To Their Products And/or Processes Provide Reference Information On Change Types And Descriptions

4 Training Roadmap I. Product Change Policy, Disclaimer, and Manufacturer Responsibility Flextronics Product Change Policy and Disclaimer Manufacturer Responsibility II. Product Change Notification (PCN) and Change Definitions Defining Change - Interchangeable and Non Interchangeable Changes PCN Document III. Documenting and Communicating PCNs Documenting PCNs - Mandatory Information End of Life (EOL) PCNs Communicating PCNs IV. References Reference to Change Types and Descriptions Acronyms

5 I. Product Change Notification Process Flextronics Policy, Disclaimer, and Manufacturer Responsibility

6 Flextronics Product Change Policy and Disclaimer Flextronics Policy All proposed temporary or permanent changes affecting material form, fit, or function status shall be submitted using the required Flextronics PCN process. As Per Flextronics General Supplier Quality Requirements (GPO-GPO ), PCNs and information shall be submitted as follows: All PCNs shall be submitted minimum 90 days prior to implementation PCNs for product discontinuance shall be submitted 180 days prior to last order dates and 365 days prior to last shipment release dates. Exceptions to this requirement may be based on pre-existing contractual requirements that are deemed to take precedence. Flextronics Disclaimer The receipt of a Manufacturer s PCN (including EOLs) by Flextronics, does not signify acceptance of the proposed product or process change.

7 Manufacturer Responsibility Flextronics Manufacturers must have a Change Communication Process in place to promptly and accurately notify Flextronics of changes to Manufacturer products. Change communication must include all proposed temporary/permanent changes in parts, materials, and processes in production. Flextronics Manufacturers are responsible for managing changes made by subordinate manufacturers within their supply chain. Note: The Product Change Notification process for subordinate manufacturers is the same as the process for direct manufacturers.

8 II. Product Change Notification (PCN) and Change Definitions

9 Defining Change 1. Interchangeable Changes Any change will be considered Interchangeable if ALL of the following criteria are met: No change to the component or assembly Form, based on the product specifications. New features will be considered interchangeable if they do not violate existing requirements No change to the component or assembly Fit, based on the appropriate drawings and tolerances No change to the component or assembly Function, based on relevant product specifications, including (but not limited to) performance, safety, reliability, and environmental specifications. Manufacturers are NOT expected to generate PCNs on Interchangeable Changes unless they are contractually obligated to do so.

10 Defining Change 2. Non Interchangeable Changes If any adjustments or modifications of new or existing product are required to meet conditions of Form, Fit, or Function the changes are considered Non Interchangeable The following changes will always be considered Non Interchangeable: Addition Of New Requirements To Component / Assembly Form New Controlled Dimensions Or Tolerance Modifications Removal Of An Existing Requirement Addition Of A New Requirement Change of Fabrication Site, Country Of Origin, New Subcontractor, etc. New Component Or Raw Material Cosmetic Changes Name Changes (Change In Name Of Company) Nomenclature Changes (Change In Name Of Part Or Process) Packaging Changes Logistics Changes If Previous Interchangeable Changes Have Created Issues Manufacturers MUST generate PCNs on Non Interchangeable Changes.

11 PCN Documents The PCN Document: Is Created By Manufacturer As Part Of The Flextronics Change Management Process Informs Flextronics Of An Impending Change To A Part Or Product Provided by the Manufacturer Shall Be Transmitted Via Is Sent Within Required PCN Lead Time Shall Be Communicated In English Shall Be Accessible In Terms Of Document Protection And Allow Copying Must Be Complete And Accurate The Manufacturer: Shall Submit At Least One PCN Document Per PCN Shall Submit Attached Documents In MS Excel, MS Word, Or Adobe (PDF) Format

12 III. Documenting and Communicating PCNs

13 Documenting PCNs : Mandatory Information PCNs must be communicated at least 90 days prior to shipment of affected parts (EOL PCNs days prior to last order dates and 365 days prior to last shipment release dates) Manufacturer PCNs MUST contain: PCN Number PCN Issue Date Part Number / MPN Part Name Change Description Reason for Change PCN Effective Date Manufacturer Contact Number assigned by Manufacturer to the PCN document. This number must be referenced on all correspondence related to the PCN. If Mfr does not assign a PCN number, Flextronics will assign a number and issue a Corrective Action Request requesting the Manufacturer assign a number or confirm the use of the Flex-assigned number. Date on which PCN is issued to Flextronics Number assigned to the component / part. Also called Manufacturer Part Number (MPN) Name of the part undergoing change Description of the change Reason the change is being made to the part / product Date on which change described in PCN comes into effect Manufacturer information including name (point of contact), manufacturer address, address, and other contact details

14 Example of a PCN Document

15 Example of a PCN Document

16 EOL PCNs EOL Notification is a Change Notice from Manufacturer regarding parts that will no longer be provided. EOL submission is accomplished using the PCN process which includes EOL Change Type. EOL PCNs MUST be submitted to Flextronics 180 days prior to last order dates and 365 days prior to last shipment release dates. EOL PCN MUST include the following, in addition to standard PCN mandatory fields: EOL Part Number / MPN EOL Part Name Reason for product discontinuation Last Time Buy Date Last Ship Date Equivalent alternative product, if available Unique Part number assigned by Manufacturer Name of Part being discontinued Mandatory information must be provided Final Date for purchase of discontinued product Final Delivery Date of discontinued product Alternative Part replacing discontinued part

17 Example of an EOL PCN

18 Example of an EOL PCN

19 Communicating PCNs Where - Flextronics Manufacturers must submit PCNs electronically to When - PCN Lead Time PCNs shall be submitted to Flextronics minimum 90 days prior to implementation unless contractually agreed upon. A PCN involving an End of Life (EOL) part shall be submitted 180 days prior to last order date and 365 days prior to last shipment release date. How - PCN Format PCN attachments shall be in MS Excel, MS Word, or Adobe (PDF) formats that allow content copying or extraction. MPN Lists (Part Numbers) shall be in MS Excel or Adobe (PDF) format. Document formats that prevent copying are not permissible. These include Bitmaps,.jpg files, web links,.gif files, HTML documents, and ASCII text files. Flextronics rates Manufacturer PCNs on timeliness, accuracy, completeness, and clarity of information.these ratings are included in the Manufacturer s overall performance rating.

20 PCN Process Flow Flextronics communicates with Mfr only if clarification is required

21 Summary Manufacturers are responsible for submitting all change notifications to Flextronics via using the address Manufacturers are responsible for implementing and maintaining an appropriate change management system that allows them to meet Flextronics change reporting requirements. Manufacturers are responsible for reporting all non-interchangeable changes and interchangeable changes based on this training and their contractual requirements Manufacturers should include all mandatory information in their PCN and EOL documents. Manufacturers shall report normal changes 90 days prior to implementation and EOL changes 180 days prior to last order date and 365 days prior to final shipment release date. Manufacturers should report changes via and in preferred formats as detailed in the training.

22 IV. References

23 Reference : Change Types and Descriptions Change Type Change Description Acronym Acquisition (Complete) One company acquires another company in its entirety ACQC Acquisition (Partial) One company acquires part of another company or acquires a specific product line ACQP Design Change / Data Sheet Spec Change Fabrication Site Change / Qualification / Country of Origin /New Subcontractor New Component or Raw Material Added Non-interchangeable design modification including (but not limited to) dimensions, performance, modification to spec, software changes, new or modified CTF (critical to function) parameters, includes new die revisions All changes to fabrication site, qualification levels, country of origin, or additions of subcontractors must be reported All changes to components or raw material must be reported; this includes adding alternate sources, changing brands, switching to components that weren t included in previous qualifications or environmental declarations DESIGN FAB MATL

24 Reference : Change Types and Descriptions Change Type Change Description Acronym Cosmetic Change Obsolescence All changes that will be visible must be reported (New color, texture, etc) this includes changes to inspection criteria that may result in different cosmetic quality Obsolete, End of Life, Discontinued Products, some Die Rev changes and ordering part number nomenclature changes. Any PCN that creates obsolescence of a part (other than Acquisitions). Die Revision Changes that do not change the ordering MPN should be categorized COSMETIC OBS Name Change All changes to manufacturer or distributor name must be reported NAME Nomenclature Change All changes to MPN nomenclature must be reported; including elimination of product options NOM Reversal Supplier reverses an existing PCN REV

25 Reference : Change Types and Descriptions Change Type Change Description Acronym Process Change Environmental Announcement Packaging and Media Storage and Handling Logistics A non-interchangeable process change is being made (Rework, inspection, test, etc) A non-interchangeable equipment change is being made (New process, manual to auto, etc) New compliancy features offered for existing parts (that don t involve any changes to the product) or new product environmental announcements All Changes to media must be reported (New media, tray to tape, change in product identification information of outer and internal packing material/labeling, changes to internal/external packaging, etc) A non-interchangeable environmental requirements change is being made (Temperature, humidity, Moisture Sensitivity Level (MSL), etc.). All Changes in logistics/distribution/shipping channel or method (especially for sensitive product) must be reported PROC ENV PKG STORE LOG

26 Reference : Change Types and Descriptions Change Type Change Description Acronym Roadmap Continuous improvement notifications, etc RMAP Quality Alert Notifications Notifications regarding quality issues on components QAN Multiple Types Change overlaps with multiple change types. MULTI Other PCNs not covered under any of the other existing classes OTH

27 Acronyms Acronym Description PCN Product Change Notification EOL End of Life MSL Moisture Sensitivity Level ACQC Acquisition (complete) ACQP Acquisition (partial) DESIGN Design / Data Sheet Spec Changes FAB Fabrication Site change / qualification MATL New Component or Raw Material Added COSMETIC Cosmetic Changes OBS Obsolescence NAME Name Change

28 Acronyms Acronym Description NOM Nomenclature Change REV Reversal of a PCN PROC Process Change ENV Environmental Announcement PKG Packaging and Media STORE Storage and Handling LOG Logistics RMAP Roadmap QAN Quality Alert Notifications MULTI Multiple Types OTHR Other

29 For Further Questions Please Contact: PCN Team The information in this presentation is the intellectual property of Flextronics. Any changes or omissions from its original format outside Flextronics are considered void and not representative of this organization. Any forwarding to third parties or publication even of parts thereof requires express and written approval by Flextronics. Hardcopy printouts of this file should be treated as reference only. It is the user s responsibility to validate that the hardcopy represents the most current revision by consulting the online reference or the relevant documentation center.

30 Thank You!

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