Slide title minimum 48 pt Slide subtitle minimum 30 pt ERICSSON MEETS SMID Improve April, 2011

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 2 (40) Agenda 4 th April –Ericsson presentation –Statistical tools in manufacturing –DMAIC/IDDOV 7 th April –Define –Measure 11 th April –Analyze 14 th April –Implement –Control

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 3 (40) DMAIC Chart Comprehensive Light D efine Understand the task and its financial impact. Task selection matrix SMART review Stakeholder map Risk Management SWOT analysis Process map VOC and break down to CTQs 7MT Affinity diagram M easure Develop and execute an appropriate data collection method. Process map Data collection table Pareto diagram 7QCT Measurement system analysis Sampling technique SIPOC Gauge R&R, Gauge attribute Capability analysis Benchmark Tagushi loss functions A nalyze Find the root causes. Fishbone diagram Correlation analysis 7QCT Hypothesis testing Regression- analysis DOE Anova 7MT Data transformations Simulations I mprove Generate and implement solutions. FMEA risk analysis Process map Poka-Yoke Hypothesis testing Loss functions Cost/Benefit selection Pugh Concept Selection C ontrol Ensure that the results will last. Documentation, standardization and training 7QCT SPC Business case verification

Slide title minimum 48 pt Slide subtitle minimum 30 pt FMEA FAILURE MODE AND EFFECTS ANALYSIS

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 5 (40) FMEA Focus on observable behaviors

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 6 (40) FMEA Why? –If it can go wrong - it will go wrong! –Prevention is better than cure Where? –Can be applied to any process Who? –A team of people connected with the process "A large safety factor does not necessarily translate into a reliable product. Instead, it often leads to an overdesigned product with reliability problems. Failure Analysis Beats Murphy's Law Mechanical Engineering, September 1993

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 7 (40) FMEA worksheet

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 8 (40) FMEA severity (SEV) rating For each failure mode, decide on the impact on the product or operation when it occurs. Rate this impact in the column labeled SEV (severity). Establish your baseline for the analysis, i.e. SEV=10 means death of a human or machine failure. A SEV rating cannot change when improvement actions are put in place unless the design has changed. Potential Failure ModePotential Failure Effects S E V Reciever & Output data loss, track loss 3 Output loss from pre-amp Effect of failure mode Potential Failure modes Loss of signal from 2 nd RF amp Loss of position, velocity & time. 5 Severity Rating for the Failure Effect.

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 9 (40) FMEA occurrence (OCC) rating For each potential failure mode come up with one or more potential causes. Rate the probability of each potential cause occurring and place the rating in the column labeled OCC (occurrence). Potential Failure Effects S E V Potential Causes O C C C1 short 1 U21 function 10 Severity Rating for the Failure Effect. Effect of the failure mode Receiver & Output data loss, track loss Loss of position, velocity & time 3 5 Potential cause of failure mode Probability of Occurrence

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 10 (40) FMEA detection (DET) rating For each potential cause, identify the current controls which are in place to prevent or detect the failure mode. Rate the ability of each current control to prevent or detect the failure mode once it occurs. Place the rating in the column labeled DET (detection). Potential Causes O C C Current Controls D E T R P N C1 short 2 Test PR-20 & HW U21 function 6 None 6288 Current Controls for each failure mode. Ability to prevent or detect the failure mode.

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 11 (40) RPN calculation => action plan Multiply the SEV, OCC and DET ratings together and place the value in the RPN column. The largest RPN numbers should get the greatest focus. Any SEV which has a value 10 should have attention regardless of the OCC and DET values. For those RPN numbers which warrant corrective action, recommended actions and the person responsible for implementation should be listed. SEV * OCC * DET = RPN (3 *1*6 = 18) SEV * OCC * DET = RPN (3 *1*6 = 18) Potential Failure Effects S E V Potential Causes O C C Current Controls D E T R P N Actions Recommended Resp. Operator skill/training Motor frame is unstable Recommended actions and person responsible for implementation. Operator Knowledge experience Ticket specifies - but coded Coding chart to be issued & displayed by machine Darren Wooler Risk Priority Number (RPN)

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 12 (40) Impact of corrective actions When making corrective actions use the available data to secure the best corrective action at the time. Correct SEV most probably needs a design change. Correct OCC may need a design and process change. Correct DET may need a design or process change.

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 13 (40) Action results After corrective action has been taken, place a brief summary of the results in the Actions Taken block. A new value should be assessed for the severity, occurrence and detection of the failure mode and root cause with the recommended action implemented. Place these values in the SEV, OCC and DET columns and calculate the new RPN. Coding chart to be issued and displayed Chart displayed & operator informed Actions RecommendedResp.Actions Taken S E V O C C D E T R P N. machine all viking as no feet - add to works spec Darren Wooler Clarify effect of with feet & no feet measure to drg spec Summary of actions completed. New SEV, OCC and DET values. New RPN (risk priority number)

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 14 (40) Focus on the critical few high RPNs in your Pareto diagram and do changes in the operations to decrease SEVERITY or OCCURANCE alt. increase opportunity of DETECTION Example of a Pareto diagram FMEA analysis

Slide title minimum 48 pt Slide subtitle minimum 30 pt POKA-YOKE MISTAKE PROOFING

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 16 (40) History Poka-yoke was invented by Shigeo Shingo in the 1960s. The term "poka-yoke" comes from the Japanese words "poka" (inadvertent mistake) and "yoke" (prevent). The essential idea of poka-yoke is to design your process so that mistakes are impossible or at least easily detected and corrected.

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 17 (40)

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 18 (40) Poka-yoke major categories A prevention device engineers the process so that it is impossible to make a mistake at all. Prevention devices remove the need to correct a mistake, since the user cannot make the mistake in the first place. A detection device signals the user when a mistake has been made, so that the user can quickly correct the problem. Detection devices typically warn the user of a problem, but they do not enforce the correction.

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 19 (40) What Causes Defects? Process Variation From –Poor procedures or standards –Machines –Non-conforming material –Worn tooling –Human Mistakes Except for human mistakes these conditions can be predicted and corrective action can be implemented to eliminate the cause of defects

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 20 (40) Ten types of human mistakes Forgetfulness (Not Concentrating) Misunderstanding (Jump to Conclusions) Wrong identification (View Incorrectly...Too Far Away) Lack of experience Willful (ignoring rules or procedure) Inadvertent or sloppiness (Distraction, Fatigue) Slowness (Delay in Judgment) Lack of standardization (Written & Visual) Surprise (unexpected machine operation, etc.) Intentional (sabotage)

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 21 (40) Methods for using Poka-yoke Poka-yoke systems consist of three primary methods: –Contact –Counting –Motion-Sequence Each method can be used in a control system or a warning system. Each method uses a different process prevention approach for dealing with irregularities.

Slide title minimum 48 pt Slide subtitle minimum 30 pt COST/BENEFIT ANALYSIS

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 23 (40) Costs and benefits Example – screening of ASICs subject to failure risk related to process factor Too many ASICs screened out Too high failure risk 0,00% 0,50% 1,00% 1,50% 2,00% 2,50% Process factor screening limit Screened ASICs Max failure risk with screen Cost of reduced volumes Benefit of low failure fallout Cost of high failure fallout Benefit of maintained volumes

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 24 (40) 0,00% 0,50% 1,00% 1,50% 2,00% 2,50% Process factor screening limit Screened ASICs Max failure risk with screen Costs and benefits Finding the optimum kSEK 200 kSEK 300 kSEK 400 kSEK 500 kSEK $ cost of reduced volumes $ cost of failure fallout $ total cost

Slide title minimum 48 pt Slide subtitle minimum 30 pt

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 26 (40) Power and Sample Size Power and Sample Size Paired t 2 sample t 1 - sample Formulate Hypothesis Formulate Hypothesis Formulate Hypothesis Formulate Hypothesis Formulate Hypothesis Formulate Hypothesis Test assumption of normality (Anderson- Darling) Test assumption of normality (Anderson- Darling) Test assumption of normality (Anderson- Darling) Test assumption of normality (Anderson- Darling) Ho:Data normal HA:Data not normal p-value > 0.05 Ho: 1 2 = 2 2 HA: Test equality of variances f-test: Continuous normal data Levenes test: non-normal data f-test: Continuous normal data Levenes test: non-normal data Paired t 2 sample t 1 - sample t-Test Plot, Plot

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 27 (40) 2 Sample 1 Sample Formulate Hypothesis Formulate Hypothesis Formulate Hypothesis Formulate Hypothesis Test assumption of normality (Anderson- Darling) Test assumption of normality (Anderson- Darling) Ho:Data normal HA:Data not normal p-value > 0.05 Ho: 1 2 = 2 2 HA: Test equality of variances f-test: Continuous normal data Levenes test: non-normal data f-test: Continuous normal data Levenes test: non-normal data F-test Plot, Plot

Slide title minimum 48 pt Slide subtitle minimum 30 pt SAMPLE SIZE

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 29 (40) Student Curve - t Distribution Mean Normal Curve t Curves n Smaller n Bigger n t curves vary with sample size -they get wider and flatter than normal as sample size is reduced n In a normal curve 95% of sampling distribution is contained within 1.96 se n In a t distribution 95% is within se and se for sample size of 16 and 5 respectively n As sample size approaches n = 30, the t- distribution approaches the normal distribution

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 30 (40) Hypothesis Testing - Options and Errors Truth Decision Type I Error risk Type II Error risk Correct Decision Correct Decision HoHo HoHo HaHa HaHa T-testF-test H 0 :m y = m x s y = s x H a :m y m x s y s x m y m x s y > s x -risk: We reject a null hypothesis that is in fact true -risk: We fail to reject a null hypothesis that is in fact false

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 31 (40)

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 32 (40) Power and Sample Size The Power of a test is the probability that it will allow you to reject Ho when Ho is wrong (Ha is really true). (power = 1 - ) The following has a direct bearing on power as do the following; –the alpha ( ) level increases, the power increases –the variability of the population ( ) increases, the power decreases –the difference (effect size) increases, the power increases –the sample size increases the power increases

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 33 (40) Front Panel Manufacturer A front panel manufacturer wants to detect significant changes in front panel lengths. They sample thousands of them because it is cheap and quick to do. But this huge sample makes the test too sensitive: the blue line shows it will sound the alarm if the average length differs by a trivial amount (0.05).This Power Curve shows they are wasting resources on excessive precision. A sample size of just 100 will detect meaningful differences (0.25) without "crying wolf" at every negligible blip. You also want the confidence in your results that's appropriate for your situation (testing seat belts demands a greater degree of certainty than testing shampoo). We measure this certainty with statistical power – the probability your test will detect an effect that truly exists

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 34 (40) Power and Sample size "We've always done it this way." That's why a PCB manufacturer would sample 10 units to test whether their strength meets the target. According to the Power Curve, this small sample size made their test incapable of detecting important effects. They must sample 34 PCBs to detect meaningful differences (0.50).

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 35 (40) Acceptance sampling

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 36 (40) Acceptance Sampling: how to reduce inspection costs Quality inspection department receives a shipment of 540 capacitors every week. You need to develop a sampling plan to make decisions regarding the lot without having to inspect all of the capacitors. Because some defects are inevitable, you and your supplier decide on quality levels and risks that allow some defects while maintaining profitability for both of you.

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 37 (40) Acceptance Sampling (2) You and the supplier in common agreement decide that the worst quality you are willing to accept on a regular basis is 2% defective (AQL) and the quality that you want to reject most of the time is 8% defective (RQL).

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 38 (40) Acceptance Sampling (3) It is important to notice that: The sampling plan that that has been suggested is a good starting point. Sometimes people involved in the sampling procedure want you to adjust the sample size and acceptance number. In cases like these we should try to generate multiple plans at the same time and compare OC Curves to find the best plan. The following scenarios might have to be considered: –More convenient sample size: The inspectors find it most convenient to inspect 10 capacitors from each of the nine boxes in the shipment. They want you to change the sample size from 98 to 90. –Smaller sample size: Looking to save time, your supervisor suggests taking a much smaller sample. He wants you to reduce the sample size from 98 to 50. –Larger acceptance number: Your supplier is nervous that his shipments will be unfairly rejected. He wants you to raise the acceptance number and accept at least 10 defective capacitors before returning an entire lot.

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 39 (40) Acceptance Sampling (4) The black line represents the original sample plan with sample size of 98 (n) and acceptance number of 4 (c).The red line represents a relatively small departure from the original plan, showing a negligible reduction in the producers risk and a slight increase in the consumers risk. You are willing to change your sample size to a more convenient one to keep your inspectors happy. The green and blue lines represent more significant changes to the sampling plan which result in more risk than you are willing to accept. Show your supplier that the resulting consumer risk is much too high for you to consider raising your acceptance number to 10. Perhaps you will evaluate other acceptance numbers between 4 and 10

Slide title minimum 32 pt (32 pt makes 2 rows Text and bullet level 1 minimum 24 pt Bullets level 2-5 minimum 20 pt !"#$%&'()*+,-./ :; UVWXYZ[\]^_`abcdefghijklmnopqrstuvwxy z{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍ ÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñ òóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚ ěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗ ŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘ ˙˚˛˜˝–… ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹ ĹĻĻĽĽŃŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰ ŲŲŴŴŶŶŹŹŻŻȘș ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊ ΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХ ЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦ ЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏ ѢѢѲѲѴѴ ҐҐәǽ Do not add objects or text in the footer area SMID - Improve | Commercial in confidence | © Ericsson AB 2011 | | Page 40 (40)