SMC ISO ProgramSMC ISO Program

An overview of our very successful ISO program including some key quality metrics.

A look at our NRTL relationships.

Presentation OutlinePresentation Outline

• ISO-9001:2000 – The standard – History at Sierra Monitor Corporation – Use at Sierra Monitor Corporation – Some key metrics

• Nationally Recognized Testing Laboratory (NRTL)– OSHA definition– At SMC– Panel Shop

The StandardThe Standard

• International Organization for Standardization (ISO)

• ISO 9001:2000 represents a standard that covers parameters that, when in place, show evidence of a quality management system.

• The purpose of the ISO quality standards, albeit very abstract, is to provide a means to document, implement, and illustrate/demonstrate a quality assurance program.

History – ISO at SMC History – ISO at SMC

1994 2006

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

2006Recertification Audit

2005Recertification Audit

1994Started developing QMS

2002Initiate improvements to comply with new standard

1995Received ISO 9001:1994 Registration

1996 - 2003Continued Successful Surveillance Audits

2003 - 2006Continued Successful Audits

2003Received ISO 9001:2000 Registration

QMS

ISOISO

ISO-9001:2000

Compliance

SMC

SMC Quality PolicySMC Quality Policy

• Your Highest Expectation Is Ours

– Our philosophy of top-to-bottom quality management is embedded throughout the company.

– Management Commitment

The SMC Way The SMC Way

• Why are we registered?– Our QMS system was closely aligned with ISO 9001.

Registration was a logical next step.– It encourages process improvement by the nature of ISO,

which results in improved quality.– Customers request it, competitors are registered, and

many markets require it.– It enhances business-to-business relationships, as ISO

9001 registered corporations have a level of competency on which to rely.

The SMC WayThe SMC Way

• Our overview of Important Quality Management System principles:– Management Commitment– The concept that our organization is a series of

processes– Continuous improvement and monitoring– Documentation/Recordkeeping/Objective Evidence– Customer Focused

How we Measure up.How we Measure up.

• Management Review: Semiannual review of key metrics– Delivery Cycle

– MSO

– Key Customers

– Customer Comments

– Repeat Customers

– FST Support Incidents

– Corrective Action

– Nonconforming Product

• Annual self-audit of the entire organization – Employees are trained in

the audit process

– Assigned to teams

– Verify process compliance by organization

Material Service Orders (MSO)Material Service Orders (MSO)

Customer

SMC

SMC Customer Service

Product Failure

Product Operational

SMC

SMC

Customer

Receive Process

Evaluate

Warranty Repair

Quote

PO Issued

Non-warranty Repair

Ship

Repair Product

Accept Quote assign

PO

Quote Process:

Non-WarrantyDetermine

PriceFax/Email

Document analysis in database

Technician Analyzes Product (Need problem

defined)

Data input into MSO Database-Quality Tracking

commences

Product in transit to

SMCCall in for MSO

MSO Database

Material Service Orders (MSO)Material Service Orders (MSO)

• Warranty returns as a % of eligible shipments = .7%

• 38,000 items shipped in last 2 years

• 285 warranty MSO items

• 105 warranty MSO items performed to specification

• Warranty cost as a percentage of Sales = .18%

Delivery CycleDelivery Cycle

• Book and Ship

• We ship in days not weeks!

• Internal standard: we’re tough on ourselves

• We track annual performance verifying improved performance

Customer Comment ProcessCustomer Comment Process

Operations

Web

SalesRep.

Regional Manager

Engineering

Customer Service

Quality Manager

Customer Input

Comment Tracking

Management Overview

Customer Feedback

Customer Comment System is used to address problems that would not otherwise be resolved by

the QMS.

Incoming / In process InspectionIncoming / In process Inspection

• We inspect at:– Receiving (All Raw Material)– Post Assembly– 100% Test– 100% Calibration– 100% Configuration

• Failures = Non-Conforming Product (NCP)– Extensive database of all types of failures and failure

points– Hands off to product improvement– Ties to MSO database

OSHAOSHA

– The Nationally Recognized Testing Laboratory (NRTL) Program, • Part of OSHA’s Directorate of Science, Technology, and

Medicine. • The Program recognizes private sector organizations as NRTLs,

and recognition signifies that an organization has met the necessary qualifications specified in the regulations for the Program.

• The NRTL determines that specific equipment and materials ("products") meet consensus-based standards of safety to provide the assurance, required by OSHA, that these products are safe for use in the U.S. workplace.

– For purposes of meeting the NRTL product-approval requirements in OSHA standards, e.g., those under Subpart S of 29 CFR Part 1910, OSHA only accepts equipment or products approved by one of the NRTLs

Organizations Currently Recognized By OSHA as NRTLs:

Organizations Currently Recognized By OSHA as NRTLs:

• Applied Research Laboratories, Inc. (ARL) • Canadian Standards Association (CSA)

(also known as CSA International) • Communication Certification Laboratory, Inc. (CCL) • Curtis-Straus LLC (CSL) • Electrical Reliability Services, Inc. (ERS)

(also known as eti Conformity Services and formerly Electro-Test, Inc. (ETI)) • Entela, Inc. (ENT) • FM Global Technologies LLC (FM)

(also known as FM Approvals and formerly Factory Mutual Research Corporation) • Intertek Testing Services NA, Inc. (ITSNA)

(formerly ETL) • MET Laboratories, Inc. (MET) • NSF International (NSF) • National Technical Systems, Inc. (NTS) • SGS U.S. Testing Company, Inc. (SGSUS)

(formerly UST-CA) • Southwest Research Institute (SWRI) • TUV America, Inc. (TUVAM) • TUV Product Services GmbH (TUVPSG) • TUV Rheinland of North America, Inc. (TUV) • Underwriters Laboratories Inc. (UL) • Wyle Laboratories, Inc. (WL)

NRTLs at SMCNRTLs at SMC

– UL

– TUV

– FM Approvals

– 2450

– 2490

– 2495

– FS-X20

– FS-X40

– Panel Shop

– 2435

– 20X/200X

– 5000

– 5000

– IT Products (-02, -28)

– 5100-05

– 3100

– 3200

NRTL Panel ShopNRTL Panel Shop

• Approved by TUV to UL508A standard

• Panels are approved for installation anywhere in the US and Canada.

• Panels are made up of recognized, (approved) components.

• Safety tested, Safety rated