At the beginning of any new manufacturing job, a codified unique number will be assigned to any new order. Each activity, material and part used for the respective job order will carry the codified number and this number will be used for tracking any step of the process, parts delivered, nonconforming parts, and parts returned from the customer.

All procured material and parts will be accepted based on a certificate of compliance provided by the supplier for each delivered lot. For purpose a tracking, the lot will include the serial number for each individual part, or an alternative method for tracking the parts from the same lot. This will allow later determination of the lot of origin for each individual part. The delivered lot certificate of compliance should include: The complete certificate of origin of the part/material (OEM supplier, dealer or any intermediary involved in the transaction, country of origin, import certificate). Certificate of compliance with local regulations and list of restricted materials involved. Health and safety instructions regarding handling the parts. The results of the outgoing inspection done according to the agreement with the supplier prior to delivery. All incoming parts and materials will be subjected to incoming inspection according with instructions specific to the part. Additionally, for parts required for continuous production the suppliers will be subjected to an approval process that ensures the reliability and quality of supplied parts. These critical suppliers will be audited at least once a year to ensure the conditions under which the supplier was approved have not changed. For parts deemed as critical, 40EMS will try to find and qualify multiple suppliers and keep a stock of parts to ensure continuous production.

40EMS will employ only qualified personnel that is certified or passed a competency verification before hiring. Training regarded each activity will be provided before the manufacturing line begins operations, and any time a new operator is involved in the process. Performants reviews will be performed periodically in accordance to complexity of the task. Performants and training reports will be kept for each individual workstation. A Process Manual will be made available for each working station. This process manual includes the full description of the task, the machinery and monitoring instrumentation necessary, the inspection and the pass/failure criteria for the task. 40EMS will follow all California rules and regulations regarding labor relations.

40EMS will ensure that all the machinery and instrumentation required to perform the task will be available for each working station. A Maintenance Schedule specific to each equipment will be provided and maintenance work will be performed according to it. Additionally, Calibration of the measuring and monitoring instrumentation will be performed periodically in accordance with the instructions provided by the supplier of the equipment and instrumentation.

40EMS will develop a part specific plan intended to ensure the quality of end-product. Throughout the process of developing the best technologies for producing parts and subassemblies, the operators identify Critical Dimensions and Critical Parameters that will be monitored on the assembly line. A part specific procedure for online quality monitoring will be developed. As the most effective way to ensure the best end-product quality might require engineering modifications of the design, the proposed plan will be presented to the customer before its implementation and it might require in some cases the customer approval.

Once all the processes and procedures required for manufacturing of a part are qualified independently, a Manufacturing Line for mass manufacturing is generated. The manufacturing line is qualified by evaluating the distribution of several characteristic dimensions that are monitored in line for at least three independent runs.

40EMS will collect and analyses all nonconforming material generated through manufacturing process and all parts returned from the field that were rejected through customer inspection or failed functionally. The investigation is intended to find and eliminate the root cause for the failure. Failed or rejected parts and the investigation reports associated with it will be kept for a minimum of two years for future reference.

In order to provide additional value for the customer, to reduce the quantity of nonconforming material, and eliminate field failure at the customer site, 40EMS will perform periodical reviews of the process in order to evaluate the opportunities for quality improvements. Based on the results of these reviews, following customer inputs and the agreements with the customer, 40EMS will propose and implement Quality Process modifications intended to provide additional value for the customer.