Title: Document Number:

QCC1479
Quality Manual Revision: 51

Page 1 of 44

TABLE OF CONTENTS
TITLE..........................................................................................................................................................................................4
PURPOSE ...................................................................................................................................................................................4
SCOPE ........................................................................................................................................................................................4
APPLICABLE DOCUMENTS .................................................................................................................................................5
TERMS AND DEFINITIONS...................................................................................................................................................5
QUALITY MANAGEMENT SYSTEM...................................................................................................................................6
RESOURCE MANAGEMENT...............................................................................................................................................15
CHANGE HISTORY ...............................................................................................................................................................44

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COMPANY BRIEF

Zilog Inc. was founded in 1974 by Federico Faggin, the inventor of the world's first microprocessor,
Zilog builds semiconductor products that enable design engineers to break through the barriers to
creativity and innovation in embedded design. Zilog is the inventor of the award-winning Z80 and Z8
microchip architectures that have been embedded in over a billion end-use devices worldwide such as
consumer appliances, remote controls, vending machines, telecommunications controllers, home
automation systems, spacecraft instrumentation, industrial automation systems, and thousands of other
products.

Zilog’s products are focused primarily in the micro-logic device segment. Micro-logic devices are
processor-based semiconductors that include microprocessors, microcontrollers and digital signal
processors that process information, output data or control signals according to programmed instructions
and various external inputs. Zilog designs, manufactures and markets both general-purpose and
application specific standard products (ASSPs). ASSPs are tailored for a specific application but are not
proprietary to a single customer, while general-purpose products are neither application nor customer
specific. Zilog is also supplier of controllers for Universal Infra Red (UIR) remote controls. It has
achieved this position by combining optimized, low cost silicon, with a superb IR Remote code database
and extensive application software.

Zilog maintains its corporate headquarters and a design center in San Jose, California, with satellite
design facilities in Meridian, Idaho (referred to as MER), It has a test facility in Manila, Philippines
(referred to as ZEPI), with software design and support located in Bangalore, India (referred to as ZIEL).
It has 26 direct sales offices and more than 120 distributor locations worldwide.

The company employs a fabless model, with world-wide foundry partners selected and qualified to
compliment its current and future designs. Assembly operations and some limited testing operations are
performed at subcontracted operations located within the Asia Pacific Region.

Zilog Electronics Philippines, Inc. (ZEPI) is considered as the center of test and delivery operations for
Zilog products worldwide. It operates as the test facility of semiconductor wafers - both assembled and
in wafer form. The semiconductor wafers come from Zilog foundry partners, assembled by Zilog
subcontractors, and shipped back to ZEPI for testing and shipping to customers and authorized
distribution centers throughout the world. A small percentage are assembled, tested and shipped by
subcontractors. ZEPI directly controls the planning of subcontractor manufacturing and test sources.
Customer Service assistance are being handled by highly capable and efficient sales offices found in
various locations in US, Europe, Japan, and Asia.

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Among the product portfolio of Zilog include Plastic Dual-In-Line Package (PDIP), Plastic Leaded Chip
Carrier (PLCC), Plastic Quad Flat Pack (QFP), Thin Quad Flat Pack (TQFP), Low Profile Quad Flat
Pack (LQFP), Low Profile Ball Grid Array (LBGA), Small Outline Integrated Circuit (SOIC), Shrink
Small Outline Package (SSOP), Quad Flat No Lead (QFN), iRDA, and development tools.

The plant is situated in Parañaque, Metro Manila, which has been in operation since 1978 and has a
present workforce of more than 200 employees. The facility comprises two (2) buildings whose main
building has 2 floors, a ground floor and a basement while the other building has a ground floor level
only. The total combined floor area is over 80,000 square feet.

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TITLE: QUALITY MANUAL

1 PURPOSE

The Quality Manual shall establish a quality management system for Zilog Electronics Philippines,
Inc. that would ensure that products conform to customer and applicable regulatory requirements and
international standards, including continual improvement that would enhance customer satisfaction.
The quality management system shall be compliant to ISO9001:2000. The application of the quality
system is also aimed at making important contribution to managing costs and risks, meeting quality
objectives, driving organizational growth, and enhancing stakeholders’ satisfaction. It shall provide a
comprehensive overview of the business processes at Zilog Electronics Philippines and interactions
at various remote locations and departmental levels.

This Quality Manual is the top level document of ZEPI’s Quality Management System in the
hierarchy of Zilog specifications consisting of:

• Policy Statement (POLs or SOPs) – documents that outline direction to be taken by the
corporation and its various divisions and departments.

• Procedural Specifications – Documents that support corporate policy by defining the

methods to be used at the divisional or departmental levels.

• Detail Specifications – Specifications (PSIs, assembly diagrams, 71C/MKT drawings)

that provide the specific directions and criteria needed to accomplish particular tasks.

which together define the Zilog Quality Management System. The Quality Manual is reviewed,
revised and approved at least annually or as needed. The Quality Control department is responsible
for establishing, maintaining and implementing the Quality Manual. Personnel authorized to initiate
changes to the Quality Manual are the QC Manager, the Internal Auditor, and the Document Control
Officer with approval of the Vice-President and General Manager.

The responsibility of implementing and continuously improving the quality management system into
the ZEPI organizational structure lies with the Vice-President and General Manager and the
management staff.

2 SCOPE

The Quality Manual applies to Zilog Electronics Philippines, Inc.

It applies to all products (Wafers, IC, and development tools) it probes, tests, or ships and all related
processes.

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The quality management system requirements of the ISO 9001:2000 apply to Zilog Electronics
Philippines, Inc. except the following:

• Design and development - Zilog Electronics Philippines, Inc. does not perform any
design function nor does it have design engineering in its organization to design Zilog
products. The function of design and development is assigned at Zilog's facility in
Meridian

• Customer property - Zilog Electronics Philippines, Inc. uses its own resources such as
fabricated integrated circuits from Nampa, Idaho plant or purchased from duly approved
foundry and raw materials purchased from duly approved vendors and suppliers.

• Validation of processes for production - Zilog Electronics Philippines, Inc. does not
validate any of its processes for production where the resulting output cannot be verified
by subsequent monitoring or measurement.

The exclusions do not affect the ability of the company, or its responsibility to provide products that
meet customer and applicable regulatory requirements.

3 APPLICABLE DOCUMENTS

(The issues of the following documents in effect on the date of use form part of this manual to the
extent specified herein.)

Requirements for the application of ISO9001:2000

MIL-Std-883
JEDEC Std.
EIA Std.
All applicable POL, SOP, PSI, diagrams, and drawings

4 TERMS AND DEFINITIONS

Customer Oriented Processes (COP): Internal/external interface between an organization and a

customer

ZiDOC: The electronic documentation system in use at Zilog, Inc., at all of its locations.

Competence: Demonstrated ability to apply knowledge and skills.

Quality Plan: A document specifying the processes of the QMS (including the product realization
processes), and the resources to be applied to a specific product, project or contract.

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FMEA (Failure Mode Effects Analysis): A systematic group of activities intended to (a) recognize
and evaluate the potential failure of a product/process and the effects of that failure, (b) identify
actions that could eliminate or reduce the chance of the potential failure occurring, and (c) document
the entire process, while focusing on the design.

5 QUALITY MANAGEMENT SYSTEM

5.1 General Requirements

Zilog Electronic Philippines, Inc. has established, documented, implemented and maintained a
quality management system that is compliant to the requirements of ISO 9001:2000. It
continuously strives to improve its effectiveness by complying with the standard, utilizing TQC
(Total Quality Control consisting of Benchmarking, Awards and Awareness, 7S, QCC and
Supplier Management), stakeholders’ commitment, and customer feedback. Continual
improvement increases the effectiveness and efficiency of the organization to support its
quality policy and quality objectives that would enhance customer and stakeholders’
satisfaction.

The quality management system of ZEPI is based on customer focus, leadership, involvement
of people, process-based approach, system approach to management, continual improvement,
factual approach to decision-making and mutually beneficial supplier relationships. The
application of the quality system is not only aimed to provide direct benefits but also make an
important contribution to managing costs and risks.

Outsourced processes are managed to ensure conformance to customer requirements.

A regular management review of the quality management system is being done to ensure
continuing suitability, adequacy and effectiveness including planning and review of changes to
the system.

The process-based quality management system including defined COPs (SOP2108, ZEPI-
Customer Oriented Processes and Support Processes) are based on this model:

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MODEL of the PROCESS APPROACH

CONTINUAL IMPROVEMENT OF THE QUALITY

MANAGEMENT SYSTEM

R
Management
responsibility S
E
A
Q
C T
U C
U Resource Measurement, I
I U
S Management analysis, S
R S
T improvement F
E T
O A
M O
M C
E M
E T
N E
R INPUT OUTPUT I
T R
PRODUCT REALIZATION PRODUCT O
S
N

The processed-based quality management system.

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MODEL of the PROCESS APPROACH

CONTINUAL IMPROVEMENT OF THE QUALITY MANAGEMENT SYSTEM

R Management
E
responsibility
Q
U
I
R Measurement,
E analysis, improvement
M Resource S
E Management A
N
T C T
C S
U I
C
U O S S
S M
P OUTPUT T F
INPUT
T PRODUCT
L
A
PRODUCT OUTPUT O A
O I
REALIZATION
M C
M N SUPPLIER LOGISTICS PLANNING SUBCON TEST QUALITY CONTROL
E T
T B S A
E S
CP/CSR
A PROBE,
BACKGRIND FINAL
QUALITY
R I
R
ASSURANCE
B
O
S TEST

F
N
B SUBCON ASSEMBLY &/or TEST
B A
/ ASSEMBLY TEST TEST PRODUCT
& ZEPI PLANNING ENG'G
A
SUPPLIER FG/SHIPPING
TEST QUALITY
A
R
MAINTENANCE CONTROL
ENG'G ENG'G
E S
L TEST
DEVELOPMENT
ENG'G

QUALITY HUMAN PLANT AND INFORMATION

LOGISTICS PLANNING PACKAGING CONTROL RESOURCE INDUSTRIAL FINANCE TECHNOLOGY
ENG'G

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5.2 Documentation Requirements

5.2.1 General

The quality management system documents include but are not limited to: the
documented quality policy, quality objectives, quality manual (QCC1479), Policy
Statement (POL), Procedural specifications (SOP, Standard Operating Procedure),
detailed specifications (71C/Marketing drawing, assembly diagram, PSI), documents
(FMEA, MSA ….), and quality records defined in SOP0914, Controlled Documents
Information Retention Schedule. The document control system is designed to insure the
information required to manufacture, test, and ship its product is controlled and easily
accessible to the user in a clear and concise manner.

The document control system uses an Electronic Document Management System

(EDMS) known as ZiDOC for identifying any approved document, current revision
number, description, and other information field collected on each controlled document.

Subcontractors are provided access to applicable documents through the Zilog

EXTRASITE or through document control distribution, if no access has been granted.

5.2.2 Quality Manual

The Quality Manual (QCC1479) defines the scope of the quality management system
and provides a comprehensive overview of the business processes at Zilog Electronics
Philippines, Inc. and interactions at various departmental levels and remote locations. It
describes in short or gives reference to system related to product and process
development, manufacturing, testing, delivery and subcontracting. It provides
references to documented procedures established for the quality management system.

5.2.3 Control of Documents

SOP1523, ZEPI - Document Control – General Procedure defines the guidelines and
procedures for the initiation, approval, receipt, distribution, and changes of documents
and specifications. This procedure is aimed at ensuring that the relevant information
and requirements to probe, manufacture, and ship products are available at point of use,
are current in revision and are legible and readily identifiable. Obsolete documents are
identified to prevent its unintended use.

Documents of external origin such as standards and customer engineering

standards/specifications are subject to control according to established Document
Control procedure.

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A timely review of customer engineering standards/specifications and changes related

to assembly, test, and shipment shall be done and shall not exceed two working weeks
(automotive customers) or three working weeks (non-automotive customers). The
procedure is outlined in SOP2118, ZEPI – Customer Specification Review Procedure.
Changes shall be documented to specifications by the concerned department,
distributed, and implemented as applicable. A record of the date of implementation of
the change shall be maintained by Document Control. Documents like control plan and
FMEA shall also be updated where applicable.

5.2.4 Control of Records

Records shall remain legible, readily identifiable and retrievable. Concerned

departments shall store, file and maintain their respective quality records in locations
where they are protected against deterioration, damages, or losses. It shall keep an index
of records on file and initiate appropriate disposition as necessary according to archival
and deadfile procedure.

Deadfile procedure reference is SOP1689, ZEPI - Deadfile Procedure. Records

retention is referenced in SOP0914, CORP - Controlled Documents Information
Retention Schedule. Regulatory requirements are complied with in personnel and
finance records. Specific customer retention schedule that exceeds Zilog’s standards
shall be documented in SOP0914. Records shall also include customer specified
records.

6 MANAGEMENT RESPONSIBILITY

6.1 Management Commitment

The management of Zilog Electronics Philippines, Inc. is committed to implementing the

quality management system and continually improving its effectiveness to the satisfaction of
customers, stakeholders, and other interested parties.

Management commitment is evidenced in the Quality Policy, communicating to the

organization the importance of meeting customer as well as statutory and regulatory
requirements, establishing the quality objectives in support of the quality policy, ensuring that
the objectives are met, conducting regular management review and providing resources in
meeting these objectives.

Communication should be in the form of meetings, emails, and/or bulletin board postings, and
intranet.

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6.2 Customer Focus

Customer support and satisfaction is a major focus at ZEPI and the whole Zilog
organization as evidenced in the Zilog quality policy. Customer requirements are determined
during the contract review such that customer satisfaction is enhanced.

6.3 Quality Policy

QUALITY POLICY STATEMENT

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6.3.1 Zilog’s philosophy towards quality has been consistently aimed at continuous product
improvement and optimization of processes associated with the test and delivery of
products that conform to all established requirements for total customer satisfaction.

It has been a Zilog tradition that customer is the main driving force in a company-
wide endeavor to achieve the highest quality possible through excellent management
of its resources - personnel, equipment, materials, and environment.

ZEPI is committed to this policy and ensure that this is communicated and understood
at all levels of the organization.

6.4 Planning

6.4.1 Quality Objectives

The management of Zilog Electronics Phils., Inc. defines the quality objectives and
measurements that are in support of the Zilog mission and vision and used to deploy the
quality policy. The objectives are aimed to improve the organization's operational
effectiveness and customers' satisfaction.

These objectives reside in ZAZ05-0002 and are part of the PM of the responsible
department manager/s. The objectives are measurable, achievable within a time period,
and are regularly reviewed during the management review and the other avenues of
management review like the Weekly Activity Report (WAR) meeting, the monthly
Assembly Test Operations (ATO) review, Quarterly Review Conference (QRC) and the
bi-annual performance review.

The quality objectives are communicated by the responsible department manager and/or
the Quality Management Representative to the organization for their support in
achieving them. Various objectives consistent with and in support of the quality
objectives at different levels of the organization are also set and reviewed during the bi-
annual performance review.

6.4.2 Quality Management System Planning

The quality management system planning is carried out to meet the general
requirements of the quality management system and the quality objectives. Quality
planning in Zilog encompasses the whole facet of operations with focus on the
following:

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• Identifying of processes needed for the quality management system and their
application;
• Determining the sequence and interaction of these processes;
• Determining criteria and methods needed to ensure that the operation and
control of these processes are effective;
• Ensuring the availability of resources and information necessary to support the
operation;
• Monitoring, measurement and analysis of these processes; and
• Implementing actions necessary to achieve planned results and continual
improvement.

Changes that could affect the quality management system are reviewed and quality
planning is carried out to maintain the integrity of the system.

In Zilog, quality planning becomes an integral part of process and product

qualification. The activity includes identification and acquisition of any controls,
processes, equipment (including inspection and test equipment), fixtures, resources and
skills that may be needed to achieve the required quality.

6.5 Responsibility, Authority and Communication

6.5.1 Responsibility and Authority

The responsibility of each function is defined on individual job description,

SOP2065-Form2, Job Description
.
6.5.2 Management Representative

The Quality Manager is designated by the Vice-president and General Manager as

Management Representative and has defined authority and responsibility for ensuring
compliance to the ISO9001:2000 standard. She shall be responsible in establishing,
implementing, maintaining, and ensuring that the quality system is functioning in
accordance with customer requirements and the standards. She shall be responsible in
the reporting of the performance of the quality management system to top management
for review and as a basis for continual improvement. She shall be responsible also for
promoting awareness of customer requirements throughout the organization.

6.5.3 Internal Communication

Internal communication shall be carried out through meetings with employees or with
responsible section/department, through electronic mail (e-mail), through bulletin board
postings, or the intranet with regards to the quality policy, objectives and effectiveness
of the quality management system.
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Where desired, external communication with interested parties shall be done through
facsimile, memo, electronic media, industry association publication, media, paid
advertisement, meetings, or through Zilog website.

6.6 Management Review

6.6.1 General

Top Management of ZEPI which consists of the Vice-President and General Manager,
directors and managers regularly review the quality management system for suitability,
adequacy and effectiveness.

[Link] Quality Management System Performance

Manufacturing Module Review

Management review is carried out through the issuance of Manufacturing

Module Checklist Report called OP-42 at a frequency of once every month.
Results are discussed during the quarterly review with top management and/or
senior staff in attendance. The discussion focuses on:

• Quality objectives
• Status of preventive and corrective actions
• Quality audit reports
• Customer feedback
• Review of quality policy
• Changes that would affect the quality management system
• Update on action items from previous management review.
• Improvements

The review output includes actions related to improvement of the

effectiveness of the quality management system, improvement of the product
quality, and resources necessary to support programs.

Circulation of the OP-42 report reaches the Corporate Headquarters up to the

President and CEO of the Company. These reports are kept filed and
maintained by Quality Control Department.

Weekly Activity Report Meeting

The other avenue of management review is the Weekly Activity Report

(WAR) meeting attended by the Vice-President & General Manager and all
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first line managers. In this meeting, quality performance in all areas of

concern and other pertinent indices related to quality and productivity, subcon
issues, customer complaints and feedback and corrective and/or preventive
actions, and recommendations for improvement are presented and discussed
deliberately. These are also reported and discussed in the Monthly
Assembly/Test/Operations (ATO) Report.

7 RESOURCE MANAGEMENT

7.1 Provision of Resources

Requirements are identified to ensure adequate resources are provided in carrying out and
improving the Quality Management System for total customer satisfaction.

7.1.1 Management and Operation Organization

ZEPI plant is headed by the Vice-President and General Manager, Philippine

Operations whose scope of operations covers the Philippines. She is responsible to the
Senior Vice-President for Operations for the administration and operation of this
facility.

The Vice-President and General Manager has the main responsibility to uphold and
support the objectives and commitment to quality in accordance with company and
customer requirements. She has under her control and supervision the various
departments from which to carry out and translate the overall quality objective into
implementation, as follows:

[Link] Quality Control:

The quality organization of Zilog Electronics Philippines, Inc. operates under

certain responsibilities from which it derives its functions and commitments.
One responsibility is to protect against the shipping of products that will cause
customer problems. This is accomplished by evaluating product design and
manufacturing results for conformance to requirements at measurable points in
the life of the product.

The other responsibility is to aid the improvement of performance in all

functional areas. This is accomplished by analyzing product evaluation results,
Quality Control indices, results of audit, and customer feedback to identify
opportunities for corrective and preventive actions, continuous improvement,
defect prevention and reduction of variation and waste.

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ZEPI Quality Control Department is independently headed by the QC

Manager who is responsible to the Vice President/General Manager,
Philippine Operations, for administering the company quality functions and
programs in accordance with customer and company requirements. Likewise,
the QC Manager holds the function of a management representative with
defined authority and responsibility for ensuring that the requirements of ISO-
9001:2000 Standard for Quality and ISO 14001 Standards for Environmental
Systems are implemented and maintained. The QC Manager has a dotted line
responsibility to the Director for Quality who is based in Zilog, Meridian
Idaho, USA.

The QC Manager is responsible for administration of four (4) main sections in

the organization: Document Control, Quality Control Engineering, Quality
Assurance, and Customer Quality and Reliability.

[Link] Other Departments

Test Manufacturing
Test Product Engineering
Test Development Engineering
Test Maintenance
Logistics
Planning
Plant and Industrial Engineering
Human Resources
Finance
Information Technology
Subcon Management/Packaging Engineering

The functions of each department are detailed in the functional charts that
follow.

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Management Organization Chart

CEO
CEO

Finance President
President
Finance

Supply
Supply
HR
HR Chain
Chain System
System Customer
Development
Development Customer
Applications
Applications
&&Sales
Sales
IT
IT

Strategy MCUs
MCUs MPUs
MPUs Wireless
Wireless
Strategy

Legal
Legal Standard
StandardProducts
Products Business
BusinessMarketing
Marketing

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ZEPI ORGANIZATION CHART

Dr. Norman Sheridan

EVP, Technology & Operations
San Jose

Rick White
VP of Operations
Meridian

Rufina Borda
VP/General Manager
John Kros ZEPI (0010)
Director, Planning & Logistics
San Jose (0530)
Filomena Borromeo
Executive Secretary
ZEPI (0010)

Kelly Salone Jesus Felipe Federico Salgado Rumer Bersamina Norma Davis
Patrocinio Olarte
HR/PR Director Finance Director IT Director Subcon Opns Director
Director, CS WW Test Director
ZEPI (0030) ZEPI (0810) ZEPI (0021) ZEPI (0096)
San Jose (0530) ZEPI (0110)
Corporate HR Corporate Finance Corporate IT

Aurelia Olarte Mercedes Laxamana Reynaldo Abella

Sr. Logistics Manager Sr. Planning/PIE Manager Sr. Test Maint. Manager
ZEPI (0050) ZEPI (0101) ZEPI (0112)
Corporate Planning Corporate Planning

Rene Caesar Reyes Maritty Carreon Ma. Erlinda Fonte Elsa Victoriano Edgardo Chua CC
Test Devt Engg Manager Sr Acctg Officer – Intl QC Manager Oracle Applications Mgr Principal Packaging Engr
ZEPI (0662) ZEPI (0810) ZEPI (0100) ZEPI (0021) ZEPI (0095)

Gena Narva Ceasar Leonardo, Jr.

Principal Test Product Engr System Operations Mgr
ZEPI (0021)
Nette Abordo ZEPI (0113)
CS Section Mgr
ZEPI(0083)
Angelito Reyes
Principal Test Product Engr
ZEPI (0113)

CS Reps
ZEPI (0083)
Probe & Test Manufacturing
ZEPI (0111)

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QUALITY
CONTROL

DOCUMENT QC QUALITY CUSTOMER

CONTROL ENGINEERING ASSURANCE QUALITY &
RELIABILITY

FAILURE
ANALYSIS RELIABILITY QC AUDIT

DC FA REL AUDIT QA CUST QA/REL

• ZiDOC (EDMS) • Low yield lots at • Product, process, • Maintenance of • Incoming and • Automotive
Admin and electrical test; subcon Quality System Outgoing quality customer
maintenance QA rejects qualification (ISO9001:2000) controls, requirements and
• ZiDOC • Customer failure (STWR/STR) and Environmental packaged units, issues
Extrasite Admin analysis • Reliability System die sales, and • Customer
and maintenance • External failure monitors (ISO14001) indirect raw surveys/inquiries
• Receipt and analysis service • Subcon re- • Subcon audit materials • Quality reports
control of • Wafer yield qualification • FG and Die Bank
change notices, analysis • FIT monitor Monitoring
test tapes, DC
reports, waivers,
quality reports
• Deadfile
maintenance
• ROM admin
• Oracle item
master
maintenance
• Plate 2 creation
.

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TEST MANUFACTURING

• Production testing

• Outgoing electrical test buy-off

• UTB testing

• STWRs and engineering evaluation runs

• Burn-in operation

• Tape and Reel Operations

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TEST PRODUCT
ENGINEERING

• Dev't of multisite testing

• Test time improvement
• Process optimization
• Yield enhancement
• Electrical failure analysis
• Program revision and evaluation
• Subcon qual/support
• Reduction in LRR/PPM
• Tester and product qual
• Competitive analysis
• CFA, STWR and eng'g eval
• UTB set-up/correlation and documentation
• Development of application notes
• Fab Process Engineering
• New Product Core Team Manufacturing
Representative
• Test Program conversion
• Xtools Test Support
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TEST DEVELOPMENT
ENGINEERING

• Program conversion

• Test program development

• Utilities development

• Hardware prototype development

• Device characterization

• Systems administration of Eng'g computers

• Capability for development of application notes

• Competitive Analysis

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TEST MAINTENANCE

• Maintenance of Final Test, Probe, UTB, Burn-in and

Backgrind equipment

• PM, calibration of Final Test, Probe and Burn-in

equipment

• Build and maintenance of Final Test hardware

• Maintenance of Probe cards

• Equipment set-up and operations support

• Generation of PMI and calibration procedures

• Final Test and Probe Line Sustaining

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LOGISTICS
FG/ GENERAL PURCHASING TRAFFIC CUSTOMER CUSTOMER
SHIPPING STORES PLANNING SERVICE

• Handles • Handles receiving and • Handles • Handles ship • Schedules order • On time order entry for
warehousing, storage of raw generation or confirmation in Oracle based on WIP non-EDI orders, CFA, DSR
packing and materials, spares, PR/PO to generate availability and RMA, cancellations
labeling of cargo regular items (e.g • Handles Commercial invoice • Monitors accuracy and mask orders in Oracle
• Provides office and production negotiation with and packing list both of shipment dates • Order maintenance
headcount support supplies) vendors except for ZEPI and subcon reflected in the (change in CRD in
for tools activity • Handles receiving of subcon • Handles system compliance to T’s and C’s)
• Handles data entry foundry and subcon documentation • Ensures die and order cancel
of lots from test, services to initiate requirements for availability, responsibility(e.g. booked
disposal of scraps payment processing imports and exports assembly and test against business rules)
and physical • Receiving of as well as government delivery, and • Maintain order
inventory DSR/CFA/RMA into compliance shipment to meet management for sample
• Physical count the system • Handles billing audits commit dates ordered through Onyx and
• Physical count for logistics related • Coordinates with Oracle
cost CSR’s/ISR’s, • Keeps hardcopy confirming
• Conducts market logistics, planning in ZiDOC and initiates
survey for logistic and subcon to Customer Master
providers meet commit Transmittal form
• Monitors arrival of • Answers delivery, • Handles customer inquiries
cargo leadtime and e.g. leadtime and product
product availability via email
availability • Handles customer login
inquiries from issues and inquiries in
ISR’s/CSR’s Oynx
• Propose required • Implements the quarterly
starts for XFAB, 2% die sales RTV program
submits rom pull • Acts as conduit between
to foundry and customers, operations,
provides hot lot finance, logistics and
list planning e.g. customer
• Provide on time notifications, compliance
delivery for foundry request
rating

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PLANNING

PRODUCT, INVENTORY
PROBE AND AND
TEST PLANNING DATA CONTROL

• Plans, schedules and /monitors • Directs all activities of OSFM/Die

completion of all products Bank
required to support backlog • Reconciles Cycle count/year-end
• Meets all shipment requirements inventory
based on hard backlog report • Ensures accuracy and integrity of
• Supports delivery performance to OSFM/Oracle inventory
OSD, CRD and CSD • Monitors ISR, DMF, MRB for timely
• Generates Probe, Backgrind, and OSFM/Oracle data entry
Final Test Plan based on Build • Updates obsolete and inactive parts
Plan for ZUS review and approval to
• Conducts regular tester, prober, scrap
and handler capacity review and • Consolidates monthly scrap result for
coordinates plan for outside COQ review
capacity requirement • Assists in preparing Finance
• Evaluates inventories of dice, inventory forecast, review and
materials, WIP/FGP inventory and analysis
plans capacity • Recommends quarterly scrap list
• Coordinates on ensuring all • Assists in identifying usable and non-
orders are supported with usable inventory
materials/capacity • Provides test scenarios and testing
• Issues available die support to of OSFM new features and upgrades
Assembly Subcontractors based • Generates BOM and Routing files for
on issuance rule OSFM upload
• Monitors and coordinates units for • Interface between end user and IT
reprocessing for each respective OSFM modules
• Conducts revenue review and • Prepares runticket for incoming lots
publishes Disti shipment update or received lots at Test
during the last month of the
quarter

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PLANT AND INDUSTRIAL

ENGINEERING

PLANT INDUSTRIAL
ENGINEERING ENGINEERING

• Standards setting, review, and update

• Operation of facilities equipment Wafer and Units per Hour
- Compressed dry air system Standard CostHeadcount requirement
- A/C system • Space allocation and plant layouting
- Vacuum system • Cost study and evaluation
- Water system • AR financial justification
- Genset • Actual in-house cost monitoring
- Fire alarm system • Comparison and review of Subcontractors'
- PABX system test costs
- Waste Water Treatment Plant
• Monitoring of environment temperature and relative
humidity
• Repair, maintenance and calibration of facilities and
end-of-line equipment
• Support of ISO 14000 activities
• Work Order Request processing
• Implementation of Equipment/Plant Relayout
• Building repair and maintenance
• Janitorial services
• Overall coordination of Safety Programs/Activities
• Pollution Control

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HUMAN RESOURCES

EMPLOYEE TRAINING
& ORGANIZATIONAL COMPENSATION
DEVELOPMENT & BENEFITS

• Wage and salary administration

• Recruitment, selection and placement • Benefits management
• Employee technical skills & behavioral • Compensation and Benefits Policy
skills training management Strategy Formulation
• Organizational training • Human Resources Information
• OD research management and administration
CORPORATE • Government Liasoning
EMPLOYEE EXTERNAL
RELATIONS AND RELATIONS
SERVICES

• University participation
• Internal employee relations • Community relations
• Recreation services • Industry networking
• Safety and Security management • Labor relations and legal services
• Cafeteria and clinic management • ZEPI press relations administration
• Rewards and Recognition
administration
• Employee communication
• Employee survey

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FINANCE

ZEPI SUPPORT GLOBAL SUPPORT

• Budget, forecast and controls • Bookkeeping for Int’l

• Fixed Asset management locations
• Financial accounting, reporting • Worldwide FA management
& analysis • Financial accounting,
• Treasury & payroll reporting & analysis - Int’l
• Account payable locations (IL)
• Interco accounting • Worldwide Invty.
• Government reporting management
• SOX maintenance • Account payable (SJ)
• Sub-con reports • Interco accounting (IL)
• Taxation • SAG reporting
• Retirement plan • SOX maintenance
• Financial audit • Distribution support
• Oracle Reports generation

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INFORMATION
TECHNOLOGY

TECHNICAL SYSTEMS
SUPPORT DEVELOPMENT &
OPERATIONS

• Data communication • Electronic data processing

• Technical support • Applications support

• Data back-up maintenance • Systems analysis and design

• Software installation & upgrade • Database modeling

• Systems administration • Program development

• Network administration • Package software customization

• User planning and support • Package software deployment

• SOX Compliance for Gen Computer • Compliance with SOX Change Request

Control • SOX Compliance for Application Control

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SUBCON MANAGEMENT /
PACKAGING ENGINEERING

SUBCON OPERATIONS PACKAGING ENGINEERING

• Manage the business relationships • Responsible for Worldwide Packaging

with our Assembly and Test partners. Engineering
• Establish and maintain programs for new packaging solutions
monitoring and improving Subcon process improvement projects
performance on key indices alternative packaging
supporting Zilog’s business to include: New technology reviews
Capacity • Engineering support to subcontractors when
Pricing there are process or materials problems.
Delivery, cycle time, yield,
• Coordinate with subcons for yield sustaining and
customer service, quality
improvement projects.
• Load the subcons to support dynamic
• Coordinate with subcons for qualification of new
business demands and advise ZEPI
packages, new technology and new materials.
Planning organization regarding
• Documentations: Eng’g drawings, Assembly
delivery dates of specific lot numbers
Diagrams, 82C and 71C Drawings
of specific products.
• Coordinate with subcons on special marking
• Evaluate subcon capacity vs demand
instructions. mechanical drawings, and specs
and qualify alternative suppliers to
generation
support upcoming volume demand
and cost targets. • Rom Web Administration
• Identify and qualify subcontractors to • Mask Tooling
support new package requirements.
• Identify and qualify subcontractors to
support new technology requirements,
i.e., ROHS compliance.
• SAG reports and analysis: Actual vs
Plan and Forecast (assembly and die
sales).
• Support Tools coordination
• Wafer Fab Planning.

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7.2 Human Resources

7.2.1 General

Resources are selected on the basis of appropriate education, skills, and experience as
indicated in SOP1963, ZEPI – Hiring Standards, and competence enhanced through
continuous training.

7.2.2 Competence, Awareness and Training

Operator competencies are determined per SOP1683, ZEPI – Training Procedure and
Development Program. A one-time-inventory of potential successors to initially
address anticipated management and workforce succession needs was conducted in
2000 by SGV-DDI.

Personnel competence is measured and reviewed bi-annually through the performance

agreement, PA.

The PA is used to measure performance against a set of objectives and define

continuous improvement and developmental plans for employees.

Training are provided to improve competence and are evaluated for effectiveness on the
next competency review and PA reviews or direct employees are evaluated before,
during and after undergoing training per SOP1682, ZEPI – Operations Training
Procedure.

Part of training is personnel awareness of the relevance of their job and how they
contribute to the attainment of the quality objectives. Awareness of the quality
management system and the quality objectives for new hires is discussed by the training
section during the employee’s assimilation. Plant wide awareness of the quality
management system and quality objectives is done through meetings, bulletin board
postings, emails, and quality audit.

Training and qualification records are kept filed per prescribed retention period.

7.3 Infrastructure

The infrastructure needed for the realization of products includes the building, workspace and
utilities; equipment, both hardware and software; and support services like information and
communication technology and transport facilities.

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Zilog is certified to ISO 14001, Environmental Management System, which continuously

improves the environment towards a healthy and safe workplace. The work layout and
locations do not only promote health and safety of employees but also work efficiency.

Measuring, test, and operations equipment are covered with a preventive maintenance and
calibration program to ensure accuracy and maintain efficiency.

Support service like information and communication technology supports information flow
across functions and automates data gathering and processing which results to ease in operation
and in data analysis.

7.4 Work Environment

Environmental control is an important aspect of the manufacturing process. ZEPI’s concern for
the environment is embodied in its compliance and certification to the ISO 14001 standard.

Guidelines and procedures to ensure and maintain a controlled work environment (temperature,
humidity, dust, electrostatic discharge) and facilities necessary to product requirements are
contained in SOP1566, ZEPI - Environmental Requirements and SOP1604, ZEPI -
Electrostatic Discharge Control.

8 PRODUCT REALIZATION

8.1 Planning of Product Realization

Reference specs

Contact Review including review of customer SOP1004, CORP -

requirements and contract negotiation. Other requirements Order Management
that may arise from time to time are communicated to and Customer Service
customer service through email and/or telecon Functions

Review of build plan to determine SOP1822, ZEPI –

requirements in terms of capacity and Mounts/Build Plan
material availability, and in some cases,
program availability for engineering
and/or customer samples.

Execute the build plan. All applicable

process, quality, and
test SOPs, PSI, and
Subcon Rating guide

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Monitor subcon WIP schedule of units SOP1822, ZEPI –

for shipback to ZEPI or of units for Mounts/Build Plan
dropshipment.

Monitor shipment schedule. SOP1822, ZEPI –

Mounts/Build Plan

Responsibility in implementing the build plan lies with Planning, Logistics, QC,
Test Manufacturing and Subcon Management.

Note: ZEPI’s role in product realization starts with order entry.

8.2 Customer-related Processes

8.2.1 Determination of Requirements Related to the Product

Customer requirements, including requirements for delivery and post-delivery

activities, requirements not stated by the customer but necessary for specified or
intended use, statutory and regulatory requirements and additional requirements are
determined during the contract review. Agreements and contracts with the customer
including specifications and agreements that differ from standard are recorded in the
customer service customer order file and customer master file. These activities are
coordinated and reviewed by Customer Service and Customer Planning.

Post-delivery activities include any after-sales product service provided as part of the
customer contract or purchase order.

8.2.2 Review of Requirements Related to the Product

Product requirements that differ from the standard are defined and documented in the
Customer Service order file and the customer master file and into the Product
Specification Index or the PSI. In cases of contract or order requirements differing from
those previously expressed, Sales or the appropriate Zilog departments are notified and
the differences resolved before the order could be processed.

The ability to meet requirements are reviewed and ensured during the Product
Specification Index review/approval.

Records of the results of the review and actions arising from the review related to the
customer order are documented in the customer order file and the customer master file.
Results of the review and actions arising from the review of the Product Specification
Index is traceable in the workflow.

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If the customer does not provide a documented statement of requirements, Zilog

standard requirements shall apply and a Sales Acknowledgement is sent by Customer
Service to the customer upon order approval.

In the event of changes to product requirement and awareness of relevant

personnel to the changes, SOP1523, ZEPI - Document Control Procedure and
SOP1630, ZEPI - Specification Implementation and Audit Procedure apply.

8.2.3 Customer Communication

Customer requirement related to product information is available at the world-wide

web at [Link].

Inquiries, contracts or order handling including amendments are communicated through

email, telephone, Oracle, or EDI systems.

Customer feedback and complaints are communicated through email, telephone, Onyx
system, letter, or fax.

8.3 Purchasing

8.3.1 Purchasing Process

ZEPI has established procedures and guidelines for material procurement, calibration
service, and supplier control that ensure all materials used for operations conform to
specification and supplied by qualified and approved supplier. These are contained in
the following specifications:

SOP1601: ZEPI - Incoming Quality Control Procedure

AVL0004: Approved Vendors List
SOP1600: ZEPI - Purchasing Procedure
SOP1549: ZEPI – Control Procedure for Non-Conforming Materials
SOP1554: ZEPI - Subcontract Test Facility Qualification and Disqualification
Procedure
SOP1575: ZEPI - Vendor Control Procedure
SOP1551: ZEPI – Subcontract Assembly Qualification and Disqualification

As part of supplier management, ZEPI encourages our selected critical suppliers to at

least be certified to ISO9001:2000. This effort is documented in our supplier rating
which is done regularly.

Where specified by the contract, the organization shall purchase products, materials or
services from approved sources.
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8.3.2 Purchasing Information

The purchasing procedure in SOP1600 describes all relevant information and

documents to complete a purchase requisition from its initiation to review and approval.
Information shall include description of the product to be purchased, specifications,
drawings, relevant technical data including quality requirements, where applicable.

8.3.3 Verification of Purchased Product

Purchased products from suppliers or subcontractors are verified to ensure compliance

to specified purchase requirements.

SOP1601, ZEPI-Incoming Quality Control Procedure outlines the inspection

requirements for direct and indirect materials.

For non-IQCed materials and services, the requisitioning department inspects and
evaluates based on the requirements of the purchase requisition.

Inspection of subcontracted products are outlined in SOP1650, ZEPI-Incoming

Inspection of Subcontracted Zilog Products.

Inspection and/or testing is done on a sampling basis. A skip lot incoming

inspection program is existing based on the supplier’s incoming performance.

When verification at the supplier’s premises is required, the same inspection and
testing procedures apply. This may not be indicated in the PR as the requirement
sometimes happen after the PR is approved but communication of the requirement is
coursed through email by Subcon or Planning group.

Only accepted products are dispatched and non-conforming materials are handled
through SOP1549, ZEPI-Control Procedure for Non-conforming Materials.

Performance of supplier is regularly monitored through the use of indicators among

them are quality, cycle time, cost, delivery, and customer service. Subcontractors are
rated based on delivery, customer service, quality which includes customer
complaints, yield, cycle time, volume/price performance and loading performance.

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8.4 Production and Service Provision

8.4.1 Control of Production and Service Provision

The chain of processes that produce tested good units starts with pure silicon wafers,
probe, assembly, and test. Wafer fabrication, assembly, and a certain percentage of test
are subcontracted. Control of production at the wafer foundries and subcontractors are
validated during the initial qualification audit, the regular audit, and the subcontractors
certification to quality systems.

At ZEPI, guidelines and procedures on product and process controls at all operating
process stations that have direct and indirect impact on the quality of the product are
contained in the various applicable SOPs and documents.

Each product shall conform to the marketing outline and the CPS. Each process has
corresponding procedural specifications that include work instructions, criteria for
workmanship, manner of monitoring, inspection or test and safety precautions, where
applicable. Appropriate process control checklists are available on stations or areas
accessible to all operators, QC inspectors, and other operations and support personnel.
Process control monitors and surveillance and QC gates are implemented to ensure
product compliance to requirements.

All inspection and test equipment (including test software) used to demonstrate the
conformance of product to the specified requirements, are controlled, maintained, and
calibrated.

In the event of a change in process, introduction of a new process, new equipment and
new materials, these shall be qualified and approved by Product/Test Engineering
and/or QC/Packaging Engineering. Requirements specifying methods and procedures
for the process, as applicable, are defined and operators are qualified.

Product shipment ensures quality products are served and delivered to the customer on
time. Post delivery activities like the engineering support to customer application is the
responsibility of Zilog worldwide sales group. Reliability and re-qualification is the
responsibility of Quality Control.

[Link] Control Plan

Control Plan (SOP2114, ZEPI – Control Plan) lists the controls used for the
manufacturing, methods for monitoring special characteristics defined by the
customer and the organization, customer required information, if any, and
reaction plan when the process becomes unstable or not statistically capable.
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The control plan covers the system, sub-System, component and/or material
level for the product supplied, including pre-launch and production.

The control plan is reviewed and updated regularly or when changes occur
affecting product, manufacturing process, measurement, logistics, supply
sources or FMEA.

8.4.2 Identification and Traceability

Throughout the product realization, the bill of materials and the product status are
traceable through the runticket. The runcticket contains lot information such as product
description, lot number, quantity, material lot number, operator, equipment, and
information needed for each processing station.

Carriers at assembly and test like trays and boxes respectively are traceable to the lot
based on the tray code and labels.

8.4.3 Preservation of Product

Preservation of the conformity of product during processing and delivery to the

customer includes identification, handling, packaging, storage and protection.

Lot identification prior topmark is through the lot traveler. Once topmarked, the
date/BB code will trace the lot.

Handling includes ESD control. This is observed at any station like grounding of work
areas and storage racks/cabinets, wearing of ground strap or heel strap, and finger cots.
Please refer to SOP1604, ZEPI- Electrostatic Discharge Control.

All work-in-process and finished products are handled properly and appropriately such
as the use of wafer cassettes/conductive trays, antistatic tubes, tape and reel, and the use
of pick-up tool on QFP and LQFP devices.

Raw materials are kept in their original packing conditions when received. Finished
products are sealed/packed appropriately in static shielding bag, or moisture barrier bag
and placed into appropriate shipping box with silica gel and humidity indicator card or
as required by the customer. Packaging boxes have corresponding bar code label which
contains package minimum information such as: delivery number, Product
Specification Index (PSI), and quantity.

The condition of product in stock is regularly monitored and assessed as part of

preservation. The monitors include wafer monitor at Die Bank and Finished Goods
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visual and electrical sampling, based on SOP1959, ZEPI-Wafer Incoming and Outgoing
Inspection Procedure and SOP1670, ZEPI-Finished Goods Warehousing Procedure.

Additional specifications that cover preservation of product includes the

following:

SOP1618, ZEPI-Pack
SOP1681, ZEPI-Dispatch Audit Procedure
SOP1679, ZEPI-Product Shipment Procedure
SOP1598, ZEPI-Warehousing Procedure
SOP1566, ZEPI-Environmental Requirements

FIFO (First-In-First-Out) system is utilized to optimize inventory turns over time and
assure stock rotation. Obsolete products are handled per SOP1532, ZEPI-PSI Review
Procedure; and SOP1549, ZEPI-Control Procedure for Non-conforming Materials.

8.5 Control of Monitoring and Measuring Devices

All inspection, measuring and test equipment (including test software) used to demonstrate
the conformance of product to the specified requirements, is controlled, maintained, and
calibrated.

All aspects of calibration (authorities and responsibilities, traceability to standards,

calibration documents, procedures, calibration environment, calibration reports, labelling,
calibration intervals, procedures for equipment out of calibration, handling and storage, etc)
are performed per SOP1561, ZEPI-Equipment PM/Calibration Program, SOP1611, ZEPI –
Test Equipment Verification/Verification Listing, and SOP1612, ZEPI – Calibration
Procedure.

Calibration seal sticker is affixed to measuring/test equipment and standards where

appropriate to safeguard calibration from tampering.

For measuring and test equipment and standards that are calibrated outside through other
institutions traceable to National Bureau of Standards or equivalent, a certificate of
calibration is submitted to Plant Engineering before issuance of calibration sticker and filing
of records by QCE.

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9 MEASUREMENT, ANALYSIS, AND IMPROVEMENT

9.1 General

ZEPI values the management of information and data for performance measurement in support
of its quality management system. It implements statistical process controls in its various
processes and QC gates to ensure product conformity to customer requirements; utilizes
process capability concepts; regular preventive maintenance and calibration of equipment;
internal audits; financial; yield; delivery and reliability monitors and satisfaction surveys.

The results of these measurements are analyzed and converted to information and knowledge
that guides management toward attaining quality objectives. These information are also used
as tools in decision making.

Another tool that helps drive performance improvement in ZEPI is benchmarking.

Benchmarking information provides impetus for significant improvement or change and alerts
the organization of new practices and helps the organization performance measurement system
current with changing business needs.

9.2 Monitoring and Measurement

9.2.1 Customer Satisfaction

An annual survey is released by Customer Service in the US per POL116, CORP-

Customer/Employee Satisfaction Survey.

Internal customer feedback process includes the following:

Performance - PA (Performance Agreement)

Working conditions, environment – Zafezone Surveys, 7S
Employee communications – townhall meetings

9.2.2 Internal Audit

A Quality Control Auditor ensures compliance to the International Standards of ISO

9001:2000 and effective implementation of the requirements of the established quality
management system, including maintenance of the system. Complementing the routine
internal audit conducted by Quality Control are the random audits of self-auditor from
each department. This provides effective support in the maintenance of the quality
management system.

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An annual audit plan guides the conduct of the audit. The plan takes into
consideration the status and importance of the areas to be audited, as well as result of
previous audit.

The audit plan covers the quality management system, manufacturing process including
subcontractors, and product audits. Product audit is inspection of products at
appropriate stages of production and delivery to verify compliance to all specified
requirements like product dimensions, functionality, packaging and labeling.

Special audit, other than scheduled audit, shall be conducted during customer audit
preparation, quality issues, customer complaint, or external audit non-conformities.

The Department Head of the area being audited is responsible for prompt corrective and
preventive actions to address the audit finding.

The internal audit procedure is covered by SOP1548, ZEPI-QC Audit Procedure.

The Quality Control auditor shall be knowledgeable of the standard and shall have
training on internal auditing.

9.2.3 Monitoring and Measurement of Processes

ZEPI has established documented procedure for inspection and testing activities from
wafer to packaged units to ensure customer requirements are met.

Foundry subcontractors:

SOP0830, CORP- Management of Wafer Foundry defines the qualification,

monitoring and management of foundry subcontractors. This function is the
responsibility of Meridian.

Assembly subcontractors:

A regular monitoring and measurement of ZEPI’s subcontractors’ performance is done

by the Subcon Management Director and results are reported during the Weekly
Activity Report (WAR) and the monthly Assembly and Test Operations Review (ATO)
at ZEPI. A quarterly business review with all the subcontractors are held to discuss the
subcontractors’ performance in terms of quality, yield, cycle time, cost, volume/price
performance, loading performance, highlights and issues. When issues occur, they are
communicated and corrective actions are requested through telecon and/or emails.

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In-house process monitors:

Statistical process control is employed per SOP1666, ZEPI-SPC Monitoring

Procedure. Non-conforming processes are dispositioned through SOP1549, ZEPI-
Control Procedure for Non-conforming Materials.

Probe and Test Quality Measurements:

Probe or class test yield is one of the factors that determine the quality and reliability of
the product. Variability in materials and testers affect the final test yield and
subsequently outgoing and PPM measurements. Material-related concerns on quality
are addressed appropriately through various approaches. Test-related concerns are
addressed through a test verification monitor to supplement the existing test correlation
exercise using “golden” or correlation samples.

Other Measurements:

ZAZ05-0002 defines the other measurements of the Quality Management System

monitored by ZEPI.

9.2.4 Monitoring and Measurement of Product

Wafer Quality

The first electrical test on the wafers from the foundries is the probe test. After the
probe test, the wafers are sent to an assembly subcontractor where they are assembled
into the required package.

Zilog monitors incoming and outgoing visual lot rejection and PPM for the purpose of
providing information on quality of foundry wafers and on quality of ZEPI Probe and
Backgrind operations.

Subcon monitors wafers coming from Zilog Philippines or from Zilog’s wafer foundries
for the purpose of providing feedback for appropriate preventive and corrective actions.
Subcontractors provide wafer inspection summary to ZEPI. Outgoing quality of die
sales is likewise measured.

Subcon Quality

Subcon product quality is monitored and measured per SOP1650, ZEPI- Incoming
Inspection of Subcontracted Zilog Products and SOP1554, ZEPI-Subcontract Test
Facility Qualification and Disqualification.
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ZEPI Outgoing Quality

Majority of Zilog products are tested and shipped in ZEPI. Test operation separates the
good and rejects, a process that is called binning. Test ensures that products are tested
and meet customer procurement specifications. Rejects are automatically scrapped
when the yield meets goal; otherwise, held for further verification. The yield during test
is an important performance parameter and yield goal is applied on a device basis. Non-
conforming materials are handled per SOP1549, ZEPI-Control Procedure for Non-
conforming Materials.

When the testing is completed, final QC inspection is performed before a lot is moved
to Finished Goods. Monitoring and measurement of outgoing quality is per SOP1620,
ZEPI- QC Final Documentation Check.

9.3 Control of Non-conforming Product

Non-conforming materials include discrepant raw materials, discrepant in-process lots, product
with unidentified or suspect status, lots approved for scrap, lots failing reliability monitors, and
failing environmental monitors. Procedures and guidelines for non-conforming materials are
defined in SOP1549, ZEPI-Control Procedure for Non-conforming Materials.

All non-conforming materials are identified through the QC stamp, MRB number reference on
the traveler, and lots that needed to be held are quarantined. A Materials Review Board (MRB)
has the responsibility to review and the authority to disposition non-conforming materials.
Quality Control audit has the responsibility to audit that dispositions in the MRB are
implemented.

Customers shall be informed promptly in the event that non-conforming product has been
shipped.

9.4 Analysis of Data

Data resulting from the monitoring and measurements of processes and products, internal audit,
feedback from subcontractors, and customer satisfaction surveys are converted into information
to make them meaningful, useful and relevant to ZEPI. The information is used to assess the
suitability and effectiveness of the quality management system, the performance against goals
and objectives and customer satisfaction. The information is also used to detect characteristics
and trends of processes and products and improve opportunity for preventive action as well as
identify areas for improvement.

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9.5 Improvement

ZEPI is committed to creating a culture where people actively seek to continually improve the
effectiveness of the quality management system through the use of the quality policy, quality
objectives, audit results, analysis of data, corrective and preventive actions, and management
review.

Comparative information through benchmarking is also used as a tool to evaluate results

against competitor performance, best practices or external measures of performance for
continuous improvement.

Corrective Action

SOP1700, ZEPI – Corrective and Preventive Action Process summarizes the guidelines in
instituting corrective and preventive action process from various sources or trigger points of
discrepancies or non-conformities in order to eliminate the cause and prevent recurrence.
Corrective actions include review of the non-conformance (including customer complaint),
analysis of the cause of non-conformance, corrective action to ensure the problem does not
recur, record of the results of actions taken and review and examination of results. Corrective
actions are applied on quarantined lot, QC rejected lot, lot submitted to OCAP (Out of Control
Action Plan), lot submitted to MRB or in-line product failure analysis. Corrective action
implementation is the responsibility of the owning department of the non-conformance.

Quality Control audits implementation of corrective action. Effectiveness of the corrective

actions done is verified through the QC audit, re-buy-off, or the result of succeeding operation.

Preventive Action

Preventive action in ZEPI is performed through the 8-D corrective and preventive or through
the Quality Control audit approaches per SOP1692 and SOP1548, respectively. Preventive
action includes determining potential non-conformities and their causes through analysis of
trends and review of major changes. It makes use of sources of information such as processes
and work operations which affect product quality, audit results, quality records, service reports
and feedback from internal and external customers. Consideration is given to eliminate the
causes of actual or potential non-conformities to a degree appropriate to the magnitude of
problems and associated risks. Changes to procedures as a result of the preventive action
process are documented. Results of the actions taken are likewise recorded and the
effectiveness of the preventive actions are monitored by Quality Control.

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CHANGE HISTORY
CN
REV DATE DESCRIPTION ORIGINATOR
NUMBER
2005
45 - 12-29 Add 6.3.1 and change [Link] A. Sioson
Reason: To include requirements from ISO
9001:2002 renewal desk study for quality
policy and EMR responsibility

2006
46 - 05-22 Delete obsolete specs, SOP1629 and A. Sioson
SOP1675. Delete occurrences of IAY and
change by OSFM.
Reason: To align current reference specs
used by Planning.

47 - 09-14 Delete approvers on Quality Policy in A. Sioson

Quality Policy Statement.
Reason: Jim Thorburn (former CEO) is no
longer in ZILOG. No full time replacement
yet.

48 - 11-08 Changes on paragraphs 1.0, 3.0, 5.1, [Link], A. Sioson

[Link], 8.4.1 and 9.2.2.
Reason: To delete ISO/TS 16949 as
reference standard of the quality manual.

2007
49 - 01-18 Various changes to remove TS16949 M. Fonte
requirements. Reformatted paragraphs for
consistency.

50 - 07-31 Delete SOP1902 as reference specs for job A. Sioson

description as this is obsolete. This is
replaced SOP2065-Form2
Reason: To delete obsolete reference.

2008
51 - 04-22 Change quality policy. Delete Zilog Seattle. A. Sioson
Reason: Quality Policy revised. Zilog
Meridian not existing at present.

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