MatrixOne Materials

Compliance Central
TM TM TM TM
Materials Compliance for Green Product
Development-Implementation Framework
MatrixOne Confidential
Agenda
Business Challenges
Compliance Framework
Implementation Framework
MatrixOne Confidential
Agenda
Business Challenges
Compliance Framework
Implementation Framework
MatrixOne Confidential

Heightened consumer discrimination and environmental Heightened consumer discrimination and environmental
consciousness consciousness

Increasingly demanding regulatory frameworks for product Increasingly demanding regulatory frameworks for product
approvals approvals

Increasing concern over certain materials and total Increasing concern over certain materials and total
substance bans substance bans

Lifetime responsibility and liability placed on producers Lifetime responsibility and liability placed on producers

Tighter controls on disassembly and recycling Tighter controls on disassembly and recycling
Challenges posed by Compliance
Materials and Compliance Management
MatrixOne Confidential
Satisfy legal and regulatory requirement and avoid liabilities
Drive improvements in product design
Respond to inquiries from customers, product recyclers
and other stakeholders
For suppliers, enhance relationships with OEMs
Design for Compliance or
Design for Environment
throughout the product development process
is a MU8T for Companies to be able
to do Business Globally
ELV European End of Life Vehicle Directive
WEEE Waste Electrical and Electronic Equipment Directive
RoH8 Restrictions on the use of certain Hazardous Substances Directive
Critical for Companies Producing Products that Must Adhere to These Regulations
Material
Composition
Information Allows
Manufacturers to:
The European End-of-Life Vehicle (ELV)
directive, which from July 2003 requires
vehicle manufactures to remove heavy
metals such as lead and mercury from
vehicle components.
The directive also dictates ELV material
recovery or re-use rates of over 85% of the
whole vehicle from 2006 and over 95% from 2015.
IMDS reports and data exchange formats are used to communicate the material content
and recycalibity between suppliers and OEMs.
What is ELV?
MatrixOne Confidential
The RoHS Directive will ban placement into the
EU market of new electrical and electronic
equipment containing more than designated
maximum allowable levels of lead, cadmium,
mercury, hexavalent chromium, polybrominated
biphenyl (PBB) and polybrominated diphenyl
ether (PBDE) flame retardants, effective
July 1, 2006. RoHS works in conjunction with
the EU WEEE Directive. Manufacturers will need to ensure
that their products, parts and components comply with
RoHS in order to be distributed and sold in the EU.
Reference RoHS Directive 2002/95/EC.
What is RoH8 Compliance?
MatrixOne Confidential
The WEEE Directive applies to a wide range
of electronic and electrical products.
WEEE encourages the collection,
treatment, recycling and recovery of
waste electrical and electronic equipment.
WEEE makes producers responsible for
financing most of these activities.
Effective August 13, 2005 and December 31,
2006. Reference: WEEE Directive 2002/96/EC, as
amended by 2003/108/EC.
What is WEEE Compliance?
MatrixOne Confidential
MatrixOne Confidential
Regulation TimeLine
Effects the Automobile Industry
ELV: End of Life Vehicle Directive
- July 1, 2003. Mandates that manufacturers provide detailed reports of restricted substances
for vehicles sold in Europe
- January 1, 2006. Recyclability mandates increase from 75% to 85%
Effects the Electrical and
Electronics Industries
ELV
Hazardous Substances
July 1, 2003
ELV
95% Recyclable
Jan. 1, 2015
ELV
85% Recyclable
Jan. 1, 2006
WEEE
Aug. 13, 2005
WEEE
Recycling Targets
Dec. 31, 2006
WEEE: Waste Electrical and Electronic
Equipment Directive
- August 13, 2005. Establishes producer responsibility for recycling and disposal of electrical goods
- December 31, 2006. EU country-specific recycling targets must be achieved
RoH8: Restriction of Hazardous Substances Directive
- July 1, 2006. No lead (e.g. lead-based solder), cadmium, mercury, hexavalent
chromium and PBB/PBDE flame retardants
RoH8
July 1, 2006
MatrixOne Confidential
Risk of Non-Compliance
Loss of Market Share
- EU is the United States biggest importer for high-tech. $51B in 2001 or
24% of exports
- Western Europe accounts for nearly 30% of passenger cars
Penalties and Fines
- ELV: Production Part Approval Process (PPAP) can delay components
not clearly in compliance
- WEEE, RoHS: each EU country to adopt penalties applicable to violations
of domestic laws
Delays and Bans
- Products are and will be increasingly delayed and refused at entry points
Japan and China are enacting similar laws and the
US are considering similar laws
1
AMR Research,
2
OESA, 2002 and Fortune, 2000,
3
Allen and Overy 2003
MatrixOne Confidential
Consequences of Non-Compliance
MatrixOne Confidential
Agenda
Business Challenges and Consequences
Compliance Framework
Implementation Framework
MatrixOne Confidential
Waste Electrical and Electronics
Equipment {WEEE}
WEEE Imperative WEEE Imperative
- - 1998 6m Tonnes increasing 5% annually 1998 6m Tonnes increasing 5% annually
- - Average life of products < 2 years and decreasing Average life of products < 2 years and decreasing
WEEE Directive WEEE Directive
- - Producer responsibility Producer responsibility
- - Common collection systems Common collection systems
Key milestones for compliance Key milestones for compliance
- - Producer responsibility Producer responsibility 13 Aug. 2005 13 Aug. 2005
- - Substance Ban (RoHS) Substance Ban (RoHS) July 2006 July 2006
Key benefits of WEEE: Key benefits of WEEE:
- - Reduction in environmental impact, costs and risks of extraction Reduction in environmental impact, costs and risks of extraction, ,
production, disposal and recycling production, disposal and recycling heavy metals and heavy metals and
halogenated substances, hazardous waste emissions, halogenated substances, hazardous waste emissions,
- - Improvements in product design, performance and safety, Improvements in product design, performance and safety,
extended lifecycle re extended lifecycle re- -use and reliability use and reliability
MatrixOne Confidential
Waste and Recycling 8upport -
RoH8 and WEEE
Regulatory Requirements
- Support RoHS, China RoHS, Weee and other
US Federal, State or international
environmental regulations.
- Generate required reports for government
and customers
Product design and development
- Analyze BOM for materials and substance
content during design (i.e. Materials
recycled content, reuse and recyclability; and
substances for regulatory compliance,
disassembly of components and parts)
Procurement
- Request material data from suppliers
- Qualify parts and components to meet
regulations
- Identify exemptions (i.e. Lead as an alloying
element in steel - 0,35 %, aluminum - 0,4 %
and as a copper alloy - 4 % lead by weight)
- Multi-sourced components
Manufacturing
- Identify Lead-free components
MatrixOne Confidential
Joint ndustry Guide
Dec 2003:
- Draft Joint Industry
Guide(JIG) finalized and
approved by EIA, EICTA,
JGPSSI membership
MatrixOne Confidential
Material Lists
- Level A (banned or restricted)
- Level B (sustainability)
Reporting Thresholds for Material Lists
Data Format
- Set of Data Fields
- Examples of Material Declaration Forms
JG Contents
MatrixOne Confidential
Supply chain tool to obtain material composition data
from suppliers.
Why is this data important?
-Ensure products do not contain banned/restricted materials.
-Purchasers want to know about the presence of other
materials for:
-Recyclability
-Sustainability targets/goals
-Green marketing
Material Content Declaration
MatrixOne Confidential
8ample 8ubstance List
MatrixOne Confidential
8ample Declaration Form
MatrixOne Confidential
8ample Data Declaration Form .
MatrixOne Confidential
Proof of Compliance
A producer shall, at the request of the enforcement authority, submit within
28 days of the date of the request, technical documents or other
information showing that electrical and electronic equipment placed on the
market complies with the requirements of the regulations
Subject to the following provisions of this regulation, in proceedings against
any person for an offence under regulation 15 it shall be a defence for that
person to show that he took all reasonable steps and exercised all due
diligence to avoid committing the offence
Proof of Compliance
MatrixOne Confidential
Due Diligence
A person shall not be entitled to rely on the defense provided by
paragraph(1) by reason of his reliance on information supplied by
another unless they show that is was reasonable in all the
circumstances for to have relied on the information, having regard in
particular
(a)To the steps which he took and those which might reasonably have
been taken, for the purpose of verifying the information; and
(b)To whether he had any reason to disbelieve the information
RoHS Product Compliance Record Retention
Up to 10 years after a product is placed on the market sufficient to prove
that the product did not contain materials that had more than the
permitted levels.
RoH8 {2002/95/EC} Directive
MatrixOne Confidential
OEM or Customer Requirements
Every PPAP Submission
Design, Specification or Material Changes
Using Alternative Materials
Manufacturing methods or Production Processes Change
Production Transfer or Introduction of new Production
Equipment
Suppliers of Products or Services changed
Quality Problems resulting in Delivery Holds
Production Equipment lie idle for 12 months or longer
Upon Request
When is MD8 Reporting Required
MatrixOne Confidential
Plan and Define Program
- Design Goals
- Reliability and Quality Goals
- Preliminary BOM
- Preliminary Process Flow
- Listing of Special Product and Process Characteristics
- Listing of Compliance Standards
- Listing of Customer Substances and special materials
- Management Plan
Product Design and Development
- Design FMEA
- Design for Manufacturability, Assembly and
Compliance/Environment
- Design Verification
- Compliance Verification
- Design Reviews
- Prototype Build-Control Plan
- Engineering Specifications
- Engineering Drawings
- Material Specifications
- Drawings and Specifications Changes
- New Equipment, Tooling and Facilities Requirements
- Special Product and Process Characteristics for Compliance
- Gages, Testing Equipment Requirements
- Team setup, commitment and management support
- Sub-contractor Build
- Supplier Build
PPAP ssues
Process Design and Development
- Packaging Standards
- Product/Process Quality System Reviews
- Process Flow Chart
- Floor Plan layout
- Process FMEA
- Pre-Launch Control and Compliance Plan
- Process Instructions
- Measurement Systems Analysis Plan
- Process Capability Study Plan
- Packaging Specifications
Product and Process Validation
- Product Trial Run
- Measurement Systems Evaluation
- Process Capability Study
- Production Part Reporting
- Production Part Approval
- Production Validation Testing
- Packaging Evaluation
- Production Control Plan
- Quality Planning signoff
Feedback, Assessment, Corrective Action
- Reduced Variation
- Customer Satisfaction
- Delivery and Service
MatrixOne Confidential
Agenda
Business Challenges and Consequences
Compliance Framework
Implementation Framework
MatrixOne Confidential
Global Production and 8upply Chain
Tier 2
Machining/Fab
MatrixOne Confidential
Global 8emiconductor Chain
Integrated Device
Manufacturers
Intel
IBM
AMD
National Semiconductor
Texas Instrument
Micron
Cypress
System Manufacturers
Compaq
Dell
Cisco
HP
Fully Vertically Integrated OEMs
IBM
Compaq/HP
GE
Philips
Texas Instruments
Motorola
Fujitsu
NCR
Samsung
Siemens/Infineon
Toshiba
Adaptec
Altera
Broadcom
Design Software
Cadence
Synopsys
IP Designers
MIPS
Artisan
Foundry
TSMC Silterra
UMC
Chartered Semiconductor
70s 80s 90s 00s
Contract Manufacturing
Solectron
SCI
Jabil
Branded Retailers
CompUSA
Others to enter
Linking the Extended
Enterprise
B
2
B
Fabless Design
B
2
B
B
2
B
B
2
B
B
2
B
eCollaboration can facilitate communication between IP houses,
designers, foundries, customers.
eCollaboration can facilitate communication between IP houses,
designers, foundries, customers.
Mentor
Intercomm
Test and Packaging
STATS, UTAC, Carsem,
Unisem, NS, Anam,
Fairchild
Test and Packaging
STATS, UTAC, Carsem,
Unisem, NS, Anam,
Fairchild
Conexant
Agere
Xicor
MatrixOne Confidential
Taiwan Electronics 8upply Chain
ACER
F!C
GvC
ASUSTEK
Giga
Byte
AOPEN
Resister
YAGEO
LED CRT
CHUNG HWA
!nterface card
GvC
EL!TEGROUP
Nonitor
AD!
CTX
ACER
NAG
Power Supply Keyboard
P!CvUE
CTX
Shamrock
LCD
DELTA
L!TE-ON
Nouse
PR!NAX
Logitech
Adapter
HON HA!
L!TE-ON
Behavior
ACER
S!L!TEK
Network
D-Link
Accton
Delta
Nodem
Zyxel
GvC
C!S
ACER
F!C
N!TAC
Nicrotek
UNX
Nustek
Primax
Scanner
Desktop
Computer
Laptop
Computer
Acer, F!C, Delta
Compal,Clevo,
Nitac, Twinhead
Fax Nachine Floppy disc CD-RON Drive CD-RON
Kinpo Negamedia
CNC
C!S
Ritek
CNC
Elitegroup
Behavior
Acer
Lite-on
IC Design
200
+
Fabless
Design
Houses
Novatek, !SS!,
S!S, Sunplus,
v!A,
Faraday ..
Mask Tooling
Taiwan Nask
Wafer Reclaim
Wafer Fabrication
TA!S!L
FDH
Foundry IDM Packaging
IC Fabrication
TSMC
UMC
CSM
CSMC
SMIC
Windbond
NX!C
Nosel
WSNC
Acer
Nanya
PS!
Leadframe
SD!
IC Packaging & Testing
IC Design Tool
Cadence
Avant!
Synopsys .
Leadframe
Choung Hsim, Sampo
DRAM Testing Both
ASE
SP!L
TNG
UTC
vate
Walsin
Walter
OSE
Motherboard
PCB {Printed Circuit Board)
COMPE
G
WUS
UNICAP
UNITEC
H
Yang An
MatrixOne Confidential
Automotive Cluster Chain
MatrixOne Confidential
Automotive Cluster 8tructure
MatrixOne Confidential
8elling into EU {Germany}
Manufacturer
Retailer
Importer
- Proof of Guarantee
- Quantity
- Contract with Recycler
Electrical Appliance
Register (EAR)
Coordination Body
Recycling Agent
MatrixOne Confidential
Company Product Deliverables
Company
Compliance
Statement
Product A
Declaration
Banned
Substance
Certificate
Disassembly
Report
Stewardship
Specification
Product B
Declaration
Product C
Declaration
Product D
Declaration
IMDS (Auto)
Evidence Level
Non-banned
Recycler Rate
Information
Disclosure
Statement
MatrixOne Confidential
Compliance 3 Tier Architecture
Compliance Consultancy
3
rd
Party Compliance Test
Product Compliance
Declaration Service
Data Processing Service
Compliance Declaration
Registration, Reporting, Contract
EAR Registration
IMDS Reporting
Recycler Contract Service
MatrixOne Confidential
Documentation Proof
WEEE Disassembly Report
RoHS Test Certificate
Self Declaration, Legal Consulting
(Proof of Guarantee)
Taiwan
Manufacturer
EU State
Authority
(EAR)
EU Recycler
MatrixOne Confidential
Data Package 8ervice with MCC
CAD MODEL
IMAGE
(PARTS)
MatrixOne
MCC
IMDS
AIAG
Spreadsheet
Customer
Reports
Weee. RoHS
Report
Custom
Requested
Forms
MatrixOne Confidential
The MatrixOne 8olution
Reduce Unnecessary Design Iterations, Improve Part Reduce Unnecessary Design Iterations, Improve Part
Selection/Reuse and Procurement, Improve System and Selection/Reuse and Procurement, Improve System and
Product Configuration, Improve Supplier Collaboration Product Configuration, Improve Supplier Collaboration
Adherence to Reguatons Throughout the Process
OEM
Tier 1
Customer
OEM
Tier 1
Customer
Export
Reports
Analyze, Report,
Iterate
Thresholds
Recyclability
Analyze, Report,
Iterate
Thresholds
Recyclability
Customers
Requirements
Supplier
Supplier
Internal Parts,
BOMS, Products
Product
Central
Engineering
Central
Sourcing
Central
Supplier
Central
Import
Import
Materials Compliance
Central
MatrixOne Confidential
Product Development Process
Factory
Purchasing
Export
Service
Tools &
Mfg
QC
ERP
Create
Assembly
Instruction
Substance List
Create
Design
Create/
Update EBOM
Compliance Check
Edit
Drawings
Release
Design
Production
Plan Sheet
Create
Service
BOM(S-BOM)
Create
Parts Catalog
Create
MBOM
QCSpec
R&D
CAD/CAM/CAE
ECN
R&D
CAD/CAM/CAE
ECN
Doc Control
Doc Control
Production
Planning Control
Production
Planning Control
Parts Center
Parts Center
Product
Planning
Product
Planning
DATA
Exchange
Effectivity
Indication
Product
Development
Product
Development
Markup/Review/Approval
Parts Center
Parts Center
Production
Plan Sheet
Master
eMatrix
Create
Product
Spec.
AVL,AML
(RoHS)
MatrixOne Confidential
Export
File
XML, TXT
BOM Compliance
Validation Process
MatrixOne Materials
Compliance Central
Log file
Declaration
of
Compliance
Report
Enables compliance engineers the ability to export a BOM from any source
w/Supplier info into Materials Compliance Central for compliance verification
Compliance
Engineer
Importer
Compliance Engineer
Automated in
Release 2
External BOM Mgmt
System
Automated
MFG Engineer
External
Request?
Yes
No
Other Reporting Targets/Formats
GMW3059, Delphi A-1094, Honda,
Renault, Nokia, Motorola,
Make Parts:
Plants/Engrs
Input Data
XML/PDX
Exchange
Servlet
MatrixOne
Engineering Central
MatrixOne Confidential
Supplier submits
reported material
information
8upplier 8ubmittal
Process
Supplier/Supplier Rep Importer
Declaration
of
Conformance
Report
Compliance Engineer
Submit request
to supplier for
material
submittal
MatrixOne Materials
Compliance
Central
Request for Supplier Submittal
Request is in an
ASCII file format
sent via email or
a task
Compliance Connect worksheet
is used by the Supplier/Supplier
Engineer to perform material
declarations
External BOM Mgmt
System
MatrixOne
Engineering Central
** Compliance information from
Materials Compliance Central can
be updated on such as RoHS,
WEEE, JiG compliance values for
parts managed within MatrixOne
Engineering Central.
Enables compliance engineers the ability to request each supplier
to report the material/substance content for their supplied parts
Thank You
Thank You