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WHITE PAPER:QUALITY ASSURANCE PROCESS [ MASS PRODUCTION ]

Contents

1. Quality Policy | p.2

2. QMS ( Quality Management System ) | p.3

3. QA Process of Mass Production | p.5

4. Mass Production Reliability | p.12

5. System Operation | p.18

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1. Quality Policy

Quality Policy At Hanwha Techwin, we seek continuous research and development and to establish quality instructions and a quality management system for the purpose of achieving customer satisfaction.

Quality Vision• Pursue Perfect Quality for Customer Satisfaction• Our Quality Goal is to exceed your Expectation

We desire to give customer value the highest priority to make the best products and build trust with customers in line with our quality-first culture.

Code of Conduct for QualityHanwha Techwin performs the following to realize our Quality Vision of continuous innovation and taking bold challenges.

Consider quality demands of the market from the customer's perspectiveand reflect on them while finding a solution.

Obey rules and process to ensure the highest quality.

Work with a strong sense of responsibility to ensure a quality product.

Find solutions for all issues in the field and get to the heart of the problem.

Resolve customer demands promptly and accurately to create loyalcustomers through quality products.

Customer-oriented

True to the Basics

Professionalism

Resolve the Root of the Problem

CreateCustomer Loyalty

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ISO 9001:2008 Certificate

QA OrganizationThe QA organization is composed of multiple teams reporting to the Global Customer Satisfaction Division, which reports to the CEO. The organization structure and teams are shown below.

2. QMS ( Quality Management System )

QMS ( Quality Management System ) Hanwha Techwin has implemented ongoing quality assurance practices based on the international quality management system (ISO 9001) to ensure the quality management system is suitable for satisfying the demands of customers from design, development, production, to service, and to know whether it can be maintained effectively and remain implemented.

Production Corporation HQ R&D Center Production Corporation

CS : Customer Satisfaction

CEO

DevelopmentCenter

Global CSDivision

ManufactureCenter

• Quality Operation Team• Development Quality Team• Service Operation Team

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2. QMS ( Quality Management System )

Manufacturing SiteHanwha Techwin’s manufacturing sites which produce B2B and B2C video surveillance equipment are located both in Korea and China. Shown below are key areas in our facility where quality control takes place, including any advanced technologies to ensure quality, reliability, and speed. Quality is measured and inspected at many stages throughout production.

Production Corporation

Surface Mount Chip Mounting Technology

Main Assembling Outgoing Inspection

Printed Board Assembly Auto Inspection

5

Vendor AssurancePartner Company Q-STEP EvaluationHanwha Techwin has protocols in place to stabilize production and market quality even when working with a partner company by utilizing source quality management, including Import Check, Process Quality, Market Quality, & Quality Process Audit (QPA).

One method to ensure successful manufacturing with partner company materials is by utilizing a 3-Strike Out system whereby penalties and incentives are in place for quality control.

Partner Company P/I ( Penalty / Incentive ) Management: 3-Strike Out System

3. QA Process of Mass Production

QA Process of Mass ProductionIn order to ensure manufacturing / parts quality, we manage a quality assurance system for each process as illustrated below.

Leakage Prevention

Source Quality Assurance

VendorAssurance

IncomingQuality

Assurance

ProcessQualityControl

OutgoingQuality

Assurance

Preventative Management

- New approval - Initial part approval

- SMD process - Process patrol

- Regular inspection - Vendor audit

- PBA process - Mass production reliability (ORT)

- Site management

Vender audit Process monitoring

Performance inspection Defect improvement

Q-STEP Reliability verification

Appearance inspection Reliability verification

- Incoming inspection

- Main process - Outoing inspection

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3. QA Process of Mass Production

Operation Process

Class

Partner Company Evaluation ( QPA : Quality Process Audit )The QPA provides a classification score and related audit frequency based on quality production. This provides partner companies a preemptive defect management process, achieved through improved autonomous quality management.

Top 4Management

Items NG

3 NGs Notification

Seize Trade( Purchase )

3-StrikeOut

( Quality )

Class NoneBronze Silver Gold Diamond

(C) (B) (A) (AA)

Score 69 or less 70~79 80~89 90 or more 2 ConsecutiveGolds

Class Score Consecutive QPA Frequency

A 90 or more AA 1 Year

B 80 or more AB, BB 1 Year / 6 Months

C 70 or more BC, CC 6 Months

D 69 or less - 1 Month ( Monthly )

IQA ( Icoming Quality Assurance )New Part Quality Evaluation ProcessThe process shown below established a protocol to follow to ensure quality control when a new part is to be considered for use in manufacturing.

Sample Preparation( Company )

UploadPLM Report

( IQA )

OK

NG

Create ApprovalSheet

( Development )

PLM Consignment( Development )

Obtain Sample( IQA )

Process due diligencepart review

( Dimensions / exterior / Reliability )

Create evaluation report( IQA )

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3. QA Process of Mass Production

Mass-Production Part Warehouse Evaluation ProcessThe process shown below details the steps taken after a part is introduced into the mass production stage of manufacturing, including quality checks and defect analysis. This process provides a feedback loop for partner parts.

CTQ ( Critical To Quality ) Control of Core ComponentThe table below illustrates many of the core components which are critical to the quality of the finished product, and are closely monitored.

Parts Partner

PartsProduction

Receive MaterialsERP Registration

Confirm ER ShipmentImplement Check

Develop MeasuresManage History

Material Ship-inProduction Input

Sorted StorageReturn

Shipment Shipment OK

NG DefectAcquisition

Cause Analysis

ImprovementMeasures

ImprovedProduct

Shipment

ImprovedProduct Check

Purchase / Material IQA

SOC Image Sensor PCB SMPS / Power

Zoom Module Fixed Lens Iris Slip ring( For PTZ Camera )

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3. QA Process of Mass Production

SMT PBA

• Ship-in material management• Work standard for preparing carriage/material• Solder/Print management• Print AOI (Automated Optical Inspection) management• Chip mount management• M-AOI / S-AOI management• Reflow equipment management• SMD finished product management• Selective Soldering equipment management• Robotic Soldering equipment management

Lens / Zoom module

• Warehouse environment management• Auto Soldering equipment management• Bonding management• D/N Module linkage management• Heat caulking/compression management• Assembly management• PCB assembly and Con. Connection management• Punt adjustment management

Main Line

• Assembly site environment management• Temperature / Humidity measures & history management• Work instruction compliance management• Work Standard, usage definition chart & method management• PBA repair management• Time error status management• Equipment & check program uniformity management• Final package specification uniformity management• Process change & special note management

Sub Line

• Assembly site environment management• ESD & EOS request/repair management• Equipment measurement device calibration management• Carriage material uniformity management• On-site "5S, 3P ( Proper items, proper quantity and proper place )" condition, temperature / humidity management

Process Quality ControlPreemptive Quality Prevention Management (Process Patrol)The production process is carefully monitored to implement preemptive improvement procedures including the following areas:

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3. QA Process of Mass Production

OQA ( Outgoing Quality Assurance )The quality of outgoing product is checked by many steps, detailed below.

Main Line process check The exterior, performance/function, specification/package checks for assuring production quality are implemented automatically by PC.

Appearance / Packing

Program for Auto Check: Camera ( SIT ), DVR ( BIST ) auto check

3-man cell Product assembly Product check Product package

Appearance

Inner packing,Accessories

Outer packing

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3. QA Process of Mass Production

Function / Efficiency / Network Connection After manufacturing, before packaging, each item is checked for a variety of functional checks.

Specifications / Destination (Buyer)

Focus

BLC BLC N / W connection

WDR D / N

Time Barcode Firmware version

EtcSerial number

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3. QA Process of Mass Production

Shipment Check MethodRandom Sampling LOT Inspection ( GBT - 2828 Standard, Level G-II )Variable Application of Check Rigidity (Low/Medium/High) : S-MES System Auto Update

Special Check( Full check for New Product, Modified Product, Market Sensing Model )

IBI ( Internal Buyer Inspection )Implement check from the customer's perspective on products have which passed the shipment check:

Reliability CheckNew Product SR, Periodic Mass-production Function/Performance Verification

Sampling

Packaging Resetafter check Function check

Package check Exterior check Screen check

Package Check Exterior Check Fuction Check• Package box print check• Package box damage check• Accessory check

• Package box exterior check• Product exterior check• Logo, print check

• Foreign substance, focus check• Operation button condition check• Day & Night mode switch, Network check

Product Specification, Function/Performance, customer installation accessory verification

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4. Mass Production Reliability

Roundness Measuring SystemMeasuring tube barrel / circle shape (Lens barrel concentricity / circularity measurement) - Minimum measurement unit: 0.0001mm

X-ray fluorescenceEnvironmentally harmful substance analysis and evaluation ( electrical, tool measurement ) - Detected Substances : Chloride (CI), Bromine (Br), Lead (Pb), Mercury (Hg), Chrome (Cr), Cadmium (Cd)

Three-Coordinate Measuring MachineEquipment measuring dimensions / shape of parts using 3D coordinates ( Tubes and precision extrusion parts, dimension measurement ) - Minimum measurement unit: 0.0001mm

Part Reliability EvaluationThe part reliability evaluation is a test that determines a part's performance, reliability and environmental impact by evaluating the demanded quality values at various environmental conditions including the use, transport and storage. The below items are various tests that are conducted to ensure quality and reliability.

- Harmful substance management standard

Mass Production Reliability

Result Value [PPM] [Max]ITEM Cd Pb Hg Cr6+ Br ( PBBs / PBDEs ) C1

Polymer 50 200800

800 800 800Metal 200 800 SPOT-TEST - -

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4. Mass Production Reliability

Part Reliability Evaluation EquipmentNumerous machines are used in the testing and evaluation of the reliability of a part, including a thermos-hygrostat, thermal impact tester, high & low temperature tester, and a salt water spray tester.

Thermo-hygrostat Thermal impact tester

High temperature

tester

Low temperature tester

Salt water spray tester

Temperature/Humidity cycle

( -40~95℃ )

Thermal impact test

( -40~85℃ )

High temp. test( 90℃ )

Low temp. test( -40℃ )

Post processed parts corrosion evaluation

Microscope XRF measuring device

Stereoscopic microscrope Push-pull gage Calipers /

Micro meter

High magnification precision

measurement (100X)

Environmentally harmful

substance evaluation

Exteior / Property check

Tensile / Compression

evaluation (0.10~50kg/f )

Dimension measurement

3D measuring device HITE gauge

Pin gauge Φ0.5~Φ15.0,

0.01mm scale

Block gauge 0.5~100mm

Torque measuring

device

Tube partsDeviation/

Heightmeasurement

Inner diameter/hole check

Gap measurement

Screw, caulking pin

torque

Parts Measuring EquipmentCommon Measuring EquipmentMany precision measurement tools are utilized to evaluate parts, including a high magnification precision microscope, XRF measuring device, stereoscopic microscope, push-pull gauge, and calipers.

Tool Dimension Precision Measuring EquipmentHanwha Techwin also employs many precision measuring devices to ensure the quality of the tools used stay within tolerance for high assembly quality, including 3d measurement devices, HITE gauge, pin gauge, block gauge, and torque measuring devices.

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4. Mass Production Reliability

Digital multi meter Pressure resistance tester LCR meter Curve measuring

device

Power insulation resistance Pressure resistance test Electronic part property

value analysis Curve test

DC power supply Cable measuring device Static electricity tester Multi tester

Actuating parts/Adaptor defect analysis Open/Short check Static electricity of

parts/packageResistance, Current

measurement

Electric / Electronic Property Measuring EquipmentThe following equipment is used in measuring electric properties of parts and products.

Product Reliability EvaluationTransport Test ( Vibration / Falling )Extensive testing is performed to detect if defects can be caused by vibration and falling during transport from the factory to the hands of consumers. Tests are implemented at room temperature conditions.

Vibration test Falling test

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4. Mass Production Reliability

Environment Test

High / Low Temperature & Humidity StorageThis test is conducted to determine whether the physical properties and characteristics of the product is suitable when exposed to high temperatures, high humidity or low temperatures over long periods of time.

- Test Condition: 60°C / 90% / 120Hrs, -30°C / 48Hrs

High / Low temperature test Temperature / Humidity Test

Water Proof TestRain Spray TestThis is a test that determines whether the product remains suitable after physical propery and characteristic changes due to water infiltration by submerging the product in water and continuously spraying water on it in real-life operating conditions.

Moisture Proof TestThis aims to prevent moisture build up in the product in high temperatures and high humidity environments by applying temperatures and high humidity environments by applying temperature and humidity changes to the product to verify moisture infiltration.

Water Proof Test

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4. Mass Production Reliability

Power Environment TestThe Power Environment Test refers to all tests conducted to evaluate the product's strength under all sources of stress or electric charges generated in power environments by artificially simulating static electricity on the product.

Pressure resistance / Insulation

Voltage Change Ground / Resistance Measurement

Static Electricity Power Noise

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5. System Operation

System Operation A comprehensive management system is operated to ensure partner company quality, new product development quality, production quality, standard management, customer VOC, service information, etc.

Operation ofcustomer VOC &

service information

4CUST MyPLM

nTOPS

GSCM

S-MES SAP

HSDM

GlobalSCM

Production processoperation

Quality InformationOperation System

Work regulationrule management

Partner companyquality

management

Mass-productionquality

management

New productdevelopment

qualitymanagement

Partner Company Quality Management System( nTOPS: Next Techwin Open Purchasing Service )Hanwha Techwin's electronic system for partner company purchasing and payment management

• Order Delay Status• Due Date Schedule• Management• Basic Partner Company• Information Search• Company Direction Sharing

NEWS ANNOUNCEMENT PARTNER Q&A DOWNLOAD CENTERSTATUS

Shipment delay Longterm delayed payment PO

Longterm shipment delayPayment status

PO status

Contract status

Vendor evaluation Estimate pending Contract pendingSG strategic evaluation

Vendor registration status Estimate in progress Contract approval in progressPartner evaluation

Electronic contract status Estimate processed Electronic contract in progress

e-Sourcing Vendor operation Electronic Procurement

Supplier InformationCurrency The exchange rate

Top SuppliersBest Suppliers

e-Sourcing Vendor Operation Electronic Procurement Purchase Special Purchase Support

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5. System Operation

New Product Development Quality Assurance System( MyPLM: Hanwha Techwin Product Life Cycle Management )The MyPLM system manages product life cycle related documents such as product planning requirments, technical references, test result reports, BOM, design modification management, parts approval, etc.

Standard Management System( HSDM: Hanwha Standard Documents Management system )Hanwha Techwin Security Business Group observes rules and processes by standardizing all department work from marketing, development, production and support.

• Product requirement management• Development stage products• ( Test Results ) Management• Design BOM management• Parts approval management• Technical reference management• Design modification management• Development Task Monitoring

• Quality Manual• New Product Technology• Development Work Regulation• Quality Assurance Rules• Reliability Testing Regulation• Import Inspection Work Standard• Part Reliability Operation Work Regulation• Shipment Check Work Regulation

Specification Management Product Information Management RMS CommunityTask Management

Product Planning

System AnnouncementsMy Tasks

WorkSpace Development Task Monitoring

Approvals

No document

Announcement Document template register/view Document template reg

Standards Board

Business Operation Standards

Technology Standards

Administration

Announcements

Standards management>Business operation standards

Document template register/view

Document template register/view

Standards Management

Form template register/view

Document template register/view

Form template register/view

Certifications

Business Unit

Standards Type

Standards Name

In Effect Status Drafted by

Business Type

Security

In effect

Quality

-All-

Standard Status

Document Number Document Name RevisionsNo

1

2

3

4

5

6

7

BD21-0006K

BD60-0001K Quality incident report structure

Quality index management policy

BD20-0014K

BD20-0018K Quality expense operation standards

Contract business quality assurance

B010-0008K

BB31-0008K

BD20-0005K Internal quality evaluation policy

SW product quality assurance policy

02

02

00

01

03

03

03

Quality Manual

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5. System Operation

Mass-Production Quality Management System( SAP: System Analysis and Program Development )

• Ship-in check judgement• Create check plan• Adjust check rigidity• Issue instructions for partner company

NG measures• Inventory / Ship-in history search, etc.

• Integrated production standard information management

• Production plan / performance management

• Production equipment management ( such as SMT equipment, etc. )

• Production KPI Monitoring• Shipment / Process quality management

& analysis• Response to quality issues via production

history tracking

Production Process Operation System( S-MES: Security Manufacturing Execution System )The S-MES system manages items related to the overall production process, including production and checking, and aims to achieve efficient process quality management and consistent product quality.

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5. System Operation

Global Demand / Supply Network Management System( GSCM: Global Supply Chain Management )The GSCM system is used to track materials, production capabilities, and shipping from Hanwha Techwin factories, demand analysis from HQ and sales offices, to planning and managing POs and shipping status to the customer.

Customer VOC & Service Information Operation System ( 4CUST, Hanwha Techwin Customer System, https://www.4cust.net )These systems manage various types of information related to receiving requests for service as well as information supporting service activities, and it features a preemptive response system which identifies customer requests and on-site situations on a real-time basis.

• Service, Market Quality Performance Management

• Service Policy, Technical Reference, Manual Notification

• Request & Status Management per Service Type

• VOC / Complain Receipt & Status Management

• Service Agency Status Management• Product & Service Material Standard

Information Search

Home Performance Management Customer Information Orders Payments Information Hubs RWA Returns Service

Reliability Stats FOC management AR/NR shipment stats VOC response stats

VOC response time

Complaint response stats

RMA stats

E-mail repsonse rate

Complaint response time

VOC response time (by completion date)

RMA status management

Web issue status

MECA RMA service stats

MECA RMA TAT management

Call center satisfaction statsCall center satisfaction stats(by month)

N/W remote service stats

Agent monthly performance

Oversee subsidiary agent report

Material P/O stats

CRM material immediateresponse stats

ETD index management

Repair stats

Sales by service type (SO)

Longterm service delay stats

Service stats (by completion date)

Service stats(Taking over)

Material sales stats(by Center)

Agency performance (by Store)Agency performance (by Center)

Market product quality stats

Responds speed ratio

SI Timely Resolution

Field service deploymentscheduler

SWAP return management

SWAP correspondence rate

SWAP product usage stats

SWAP inventory stats

Return response speed stats

Return types

BI operation guideline

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Under no circumstances, this document shall be reproduced, distributed or changed, partially or wholly, without formal authorization of Hanwha Techwin Co.,Ltd.

Hanwha Techwin America 500 Frank W. Burr Blvd. Suite 43 Teaneck, NJ 07666Toll Free: 877.213.1222www.hanwhasecurity.com