Service, Quality, Innovation Think… · Service, Quality, Innovation think… Atmel Nantes S.A.. *...

Service, Quality, Innovation Think…

MICROCONTROLLER BUSINESS UNIT NANTES SITE

Service, Quality, Innovation think…

Atmel Nantes S.A. * MANUEL QUALITE * Rev : T * 09/06/2006 *

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SUMMARY

I. QUALITY SYSTEM MANAGEMENT......................................................................4 1. QUALITY MANUAL ........................................................................................................... 4 2. ATMEL NANTES DOCUMENTATION STRUCTURE ................................................................ 5

II. ATMEL NANTES PRESENTATION....................................................................7 1. GENERAL........................................................................................................................7 2. ATMEL GROUP OVERVIEW ............................................................................................... 8 3. ORGANISATION OF ATMEL NANTES ............................................................................... 10 4. ATMEL QUALITY MANAGEMENT...................................................................................... 12

4.1 ATMEL Corporate Quality Organization .................................................................... 12 4.2 ATMEL Nantes Quality Organization......................................................................... 13

5. PRODUCTS AND APPLICATIONS ..................................................................................... 15 6. PRODUCTS AND SYSTEM CERTIFICATIONS..................................................................... 17

III. MANAGEMENT COMMITMENT AND QUALITY POLICY.................................18 1. MANAGEMENT COMMITMENT......................................................................................... 18 2. ATMEL NANTES MISSION STATEMENT............................................................................ 18 3. 2006 ATMEL NANTES INITIATIVES ................................................................................. 20 4. CUSTOMER FOCUS ........................................................................................................ 22

IV. ATMEL NANTES PROCESS MAP ....................................................................23 1. GENERAL: MAIN STEPS FOR IC MANUFACTURING ........................................................... 23 2. ATMEL NANTES PROCESS MAP....................................................................................... 24

V. ATMEL NANTES PROCESSES DESCRIPTION....................................................25 1. PROCESS M1 “LEAD THE COMPANY AND BUILD THE FUTURE” ......................................... 25 2. PROCESS M1-1 “SALES AND OPERATION PLANNING” (S&OP) ........................................... 27 3. PROCESS M1-2 “CONTINUOUS IMPROVEMENT”.............................................................. 28

3.1 Customer satisfaction............................................................................................. 28 3.2 Internal audit ........................................................................................................ 29 3.3 Control of non conforming product.......................................................................... 29 3.4 Corrective action.................................................................................................... 30 3.5 Preventive action ................................................................................................... 30

4. PROCESS M3 “RESSOURCE MANAGEMENT” ..................................................................... 31 4.1 General................................................................................................................. 31 4.2 Competence, awareness and training ...................................................................... 31

5. PROCESS C1 “NEW PRODUCT DEVELOPMENT” ................................................................ 34 5.1 Project management.............................................................................................. 34 5.2 Step 1: customer (market) need analysis ................................................................. 35 5.3 Step 2: Product Implementation Plan (PIP) .............................................................. 35 5.4 Step 3 : Product Design.......................................................................................... 35 5.5 Step 4 : Product Evaluation .................................................................................... 36 5.6 Step 5 : Product Industrialization ............................................................................ 37 5.7 Supplemental Processes ......................................................................................... 37

6. SALES PROCESS (EXTERNAL PROCESS)........................................................................... 38 7. PROCESS C2 “FROM MARKET NEED TO CUSTOMER RESPONSE” ....................................... 39

7.1 Answer to customer request for quotation (RFQ)...................................................... 39 7.2 Business case elaboration : feasibility study ............................................................. 40 7.3 Business plan ........................................................................................................ 40 7.4 Process C6-1 “Order entry processing” ................................................................... 42 7.5 Process C6-2 “ Workshop management ATMEL and subcontractors”.......................... 43 7.6 Process C6-3 “Delivery”.......................................................................................... 45

8. PROCESS C7 “CUSTOMER COMPLAINT ANSWER”............................................................ 46 8.1 Goals and performance measurement...................................................................... 46 8.2 Data record and tracking........................................................................................ 47 8.3 Format.................................................................................................................. 47 8.4 Physical analysis .................................................................................................... 47 8.5 Annual report ........................................................................................................ 47

9. PROCESS S3 IT ............................................................................................................. 48




10. PROCESS S5 “PURCHASING” ...................................................................................... 49 11. INFRASTRUCTURE..................................................................................................... 50

11.1 Contingency plan................................................................................................... 50 11.2 Personnel safety to achieve product quality.............................................................. 50 11.3 Preservation of product .......................................................................................... 50 11.4 Environment.......................................................................................................... 50

VI. QML SPECIFICS............................................................................................51 1. TECHNOLOGY REVIEW BOARD....................................................................................... 51 2. CHANGE CONTROL........................................................................................................ 51 3. QUALITY MANAGEMENT PLAN........................................................................................ 51




I. QUALITY SYSTEM MANAGEMENT 1. QUALITY MANUAL This Quality Manual describes our Quality Management System and methods required to insure that it is properly documented, implemented and maintained. Furthermore, it covers the process approach deployed by the company and description of interaction between processes of the quality management system. The quality manual makes reference in each chapter to required procedures whose range and detail are compliant with ISOTS16949. The latest revised quality manual is ratified by the ATMEL Nantes General Manager with the SCN form and recorded as any other ATMEL Nantes document specification. When numbering exists in this Manual, it is the same as TS16949v2002 "Quality System Requirements". Appendix 1 provides all ATMEL documents references according to sections. Document History Rev N°SCN Modification Date ... L 20203-99 Conformance with QS9000 and Semiconductor supplement 13/04/99 M 20443-99 Update after AFAQ Annual review: minor changes and add pictures for

illustration 24/08/99

N 21002-00 Annual review: - Minor changes and add pictures for illustration - Update with ATMEL Nantes SA change of company name

01/12/00

P 21845-02 Annual review and conformance with ISO-TS 16949v2002 10/02/03 Q 22479-04 Annual review and conformance with “ISO TS16949 Customer specific

requirements - Semiconductor commodity” 20/02/04

R 22832-04 Review according to ESA recommendations 29/11/04

S 23002-05 2005 general update 10/02/05

T 23633-06 2006 general update 24/04/06

Distribution The Quality Manual is distributed within ATMEL Nantes to managers, who make the document available in their division. The distribution is carried out by the Documentation System department of ATMEL Nantes. A hypertext file is also available via the ATMEL Nantes Intranet. Addressees destroy obsolete editions. Each update of the Quality Manual is also distributed to our partners who use it as a reference (companies or certification bodies). The Documentation System department that updates a reference list carries out the distribution.

It is also distributed, upon request, to customers, suppliers, subcontractors and partners. ATMEL Nantes Commercial, Marketing, and Quality departments carry out the distribution.




ATMEL Nantes Quality manual

Process description

ProceduresOrganizational documents

RecordsEvidence of achievements

InstructionsOperational data

ATMEL Corporate quality management system CPQ-1000 and other CPQ’s

ATMEL Nantes Quality manual

Process description

ProceduresOrganizational documents

RecordsEvidence of achievements

InstructionsOperational data

ATMEL Corporate quality management system CPQ-1000 and other CPQ’s

2. ATMEL NANTES DOCUMENTATION STRUCTURE Documentation structure

ISOTS16949 Mandatory procedures PGMH0201 Data management: procedures, instructions, others documents and data-bases PGMH0642 Management of quality records registrations and archiving PAQA0235 Documents and data coding PAQA0178 Internal Audit PGMH0275 Corrective and preventive actions PGMH0240 Treatment of non-conformant products Coding Summary Quality ATMEL Nantes Quality Manual

Procedures PGMHxxxx, Mxx, Cxx, Sxx (*) Quality Assurance Purchasing Logistics Development Instructions

PAQA, PAQC, QCMO

POxxxx Loxxxx RDxx, DSxx

Records According to records (cf. PGMH0642) (*) Management, Customer, and Support Processes Descriptions

Control of document The PGMH0201 procedure defines ATMEL data control management. Policy - To rapidly provide the appropriate and validated documents at all defined and necessary locations and avoid use of outdated or non-controlled data. - To adapt the management level of documents to the criticality of the information contained, ensuring accuracy of the approval date and ease of access. Scope: documents and data (including those of external origin and applicable to all types of media), which help to achieve or improve quality, support training or demonstrate ATMEL Nantes practices.




Indexation: a Specifications data-base, updated in real time and available on any personal computer, manages all the documents and data under control. "PCN Data-base" registers all Process Change Notices, which are not directly related to a document (data-bases modification for instance). Specific rules are given in the PGMG0201 procedure. Document and data change: Changes to documents and data are reviewed and approved according to a minimum approval list mentioned on each document. An appropriate detailed form is attached to the change with necessary background information. All changes are described in the document, recorded and retained. Any approval list contains a Quality signature. NB: the same procedure applies for any change concerning the "minimum approval list" of a document. Information and distribution: a mailing-lists management software allows doc-control to automatically inform concerned people regarding changes on appropriate documents. Obsolete documents: all invalid documents are removed from all distribution points. A “no paper" policy makes removal of obsolete documents easier. Confidentiality: Doc-Control is responsible for managing confidentiality of specifications or other documents with author's rights: attribution of requested confidentiality level, monitoring of distributed copies internally as well as externally and insuring material protection of the documents. Traceability and history: - Each document contains the list and description of changes - Doc-control archives all the changes (file and hard copy) - All the obsolete issues (files) are retained and identified with change notice number Keeping up to date with standards: Definition, then annual checks of “List of ATMEL Nantes referenced standards” Automatic warning provided by standard Update of internal documentation if distributors necessary and implementation of change Review by an identified board of quality and local Information to related departments experts




II. ATMEL NANTES PRESENTATION 1. GENERAL Location History The start-up

• 1979: MATRA, a French high technology group, and HARRIS SEMICONDUCTORS, an American specialist of semiconductors, jointly created MATRA HARRIS SEMICONDUCTEURS, located in Nantes (France)

• 1980: The first memory (SRAM 4K CMOS) was produced in December 1980 • 1981: Signature of an agreement with Intel (telecommunications) for production of NMOS circuits at

Nantes. • 1982: Sampling of SRAM 16K CMOS memory Introduction of a complete range of CMOS gate array

networks, 400 to 1200 gates, and associated tools

Adolescence

• 1984: Signature of an agreement with CNET, FRANCE TELECOM research centre. Development of a submicronic CMOS process, the SCMOS (Super CMOS), allowing production of low-consumption fast static memories and ASIC's (Application Specific Integrated Circuit).

• 1986: Conversion of fabrication to 5 inches (125 mm), class 10. Agreement with Cypress, an American semiconductor company, for the transfer of the RAM1 process, allowing MHS to produce ultra-fast memories Creation of an international sales network in Europe, the United States and the Far East

Coming of age

• 1988: MHS produces 12 million integrated circuits per year, i.e. 1200 wafers a week. Introduction of RAM2 and SCMOS submicronic processes. Creation of a committee in charge of managing the quality improvement program".

• 1989: HARRIS withdraws from the partnership, MHS becomes "MATRA MHS” • 1991: AEG, subsidiary of the German group Daimler-Benz, takes a share of 50% of the capital (50%

Matra, 50% AEG). MHS produces 2000 wafers a week. • 1992: DASA (Deutsche Aerospace) and AEG combine their microelectronic activities in a new entity:

TEMIC. MATRA MHS is part of TEMIC Semiconductors • 1995: MHS completes the conversion of its fabrication to 6 inches (150 mm). • 1996: TEMIC Semiconductors is reorganized in 2 different divisions: The Integrated Circuits Division

(MATRA MHS is part of this division) and the Discrete Division

ATMEL Nantes La Chantrerie – Route de Gachet 44306 NANTES Cédex 3 / France Tel (33) 2 40 18 18 18 Fax (33) 2 40 18 19 20




• 1998: the American group, ATMEL, buys The Integrated Circuits Division of TEMIC Semiconductor. MATRA MHS S.A. is renamed MHS SA, 100% subsidiary of Temic Semiconductors, Temic Semiconductors being itself held 100 % by ATMEL

• 2000: Temic Semiconductors is renamed ATMEL Wireless and microcontrollers and MHS SA becomes ATMEL Nantes SA

• 2001: ATMEL Corporation is reshaped into 5 Business units: ASIC’s, Microcontrollers, Imaging, Memories, RF & Automotive. Nantes becomes part of the B.U. Microcontrollers. Previous ATMEL Wireless & uC and Corporate Sales are merged into one unique Sales Network organized by regions: Europe, U.S.A. and Asia

• 2006: The Nantes fabrication activities are sold to the French group XbyBus. ATMEL Nantes becomes a marketing, design and support industrialisation centre.

2. ATMEL GROUP OVERVIEW Founded in 1984, ATMEL Corporation is an industry leader in research, design, manufacturing, and marketing of advanced semiconductors, including microcontroller, non-volatile memory, logic, secure, mixed analog/digital, radio frequency and sensor integrated circuits (ICs). ATMEL is a leading provider of system-on-chip semiconductor solutions using advanced CMOS, BiCMOS, Bipolar, and SiGe process technologies

MilanLisbonne

Paris

Rousset

DijonNantesGrenoble

TrondheimStockholmHelsinki

HeilbronnUlm

Dresden

Munich

E. Kilbride

CamberleyN.Tyneside

Europe

ShanghaiTokyo

Asia

Minneapolis

BerkeleyColorado Springs

RaleighChesapeake

Chicago

San Jose

USA

ATMEL GroupProduct design center

Dusseldorf

Patras

Duisburg

MilanLisbonne

Paris

Rousset

DijonNantesGrenoble

TrondheimStockholmHelsinki

HeilbronnUlm

Dresden

Munich

E. Kilbride

CamberleyN.TynesideE. Kilbride

CamberleyN.TynesideCamberleyN.Tyneside

Europe

ShanghaiTokyo

Asia

ShanghaiTokyo

Asia

Minneapolis

BerkeleyColorado Springs

RaleighChesapeake

Chicago

San Jose

USA

ATMEL GroupProduct design center

Dusseldorf

Patras

Duisburg

The Headquarters are located in San Jose and the company is divided in 5 Business Units: • BU Memory: Combines Flash, Data Flash, EPROM, and EEPROM products. • BU ASIC: Combines ASIC’s, Smart Cards, and ARM based processors. • BU RF and Automotive: Combines Analog, RF, and Automotive products. • BU Microcontroller: Combines Microcontroller (C51 and AVR architectures), ULC’s (FPGA conversion) and dedicated Aerospace products. • BU Imaging Components and Systems: Combines Image Sensors (CCD & CMOS) and Electronic Systems (Finger, camera, dental sensors).




Besides Business Units, ATMEL maintains manufacturing facilities in Colorado Springs (USA), Grenoble and Rousset (France), Heilbronn (Germany), East Kilbride and North Tyneside (UK), TSPIC and ACP in Philippines. Each Business Unit is free to make use of any ATMEL manufacturing facility, depending on the overall company strategy, its technology needs and available capacities. The company also makes use of various subcontractors, in particular for assembly and testing.

Heilbronn

Manila

RoussetSan Jose

Colorado Springs

Wafer FabAssembly and/or final test

North Tyneside

ATMEL Groupmanufacturing facilities

GrenobleHeilbronn

Manila

RoussetSan Jose

Colorado Springs

Wafer FabAssembly and/or final test

North Tyneside

ATMEL Groupmanufacturing facilities

Grenoble

ATMEL markets its products through a global network of Company sales offices, registered sales representatives, and electronic component distributors. The ATMEL sales network consists of 20 offices located in 14 different countries. This organization allows ATMEL to be persistently close to customers. It ensures the achievement of ATMEL commercial objectives as defined with the different business units. It represents the interest of the customer at all times within the company. It is responsible for booking of orders.

Heilbronn

MadridSan Jose

Annandale

Stockholm CamberleyMunichEssen

Milan TokyoSeoul

ShanghaiTaipei

Hong Kong

Singapore

Paris

ATMEL GroupSales Offices

Dallas

Hoffman Estates

Braintree

RaleighBeijing

Anaheim Hills

Heilbronn

MadridSan Jose

Annandale

Stockholm CamberleyMunichEssen

Milan TokyoSeoul

ShanghaiTaipei

Hong Kong

Singapore

Paris

ATMEL GroupSales Offices

Dallas

Hoffman Estates

Braintree

RaleighBeijing

Anaheim Hills

Revenue Split by Region

Europe41%

North America

23% Asia36%




3. ORGANISATION OF ATMEL NANTES

ATMEL Nantes is part of ATMEL Business Unit Microcontrollers, organized as follows :

ATMEL B.U. Microcontrollers

Nantes and San Jose product groups incorporate Marketing, Development, Product Engineering and Business Controlling activities. Throndheim product group is the expertise center for AVR architecture. Helsinki is a Design centre specialist for some particular AVR products (AT Tiny Family).

Helsinki Design centerJ. Eskelienen

Trondheim product groupA Bogen & V Wollan

san Jose marketingA. Bogen

ATMEL Nantes product GroupFred Chevreton

San Jose ingineeringT. Mok

Business developmentP. Jones

G. TurnerVP&GM BU Microcontroler

Atmel Nantes SA

M.VadherMarketing Microcontroller

A.GuennounMarketing Aerospace

M.PassemardApplication Group

P.MalechaAutomotive Biz Dvpt

P.FaureMarcom

P.GarnierBiz Control / Planning

C.EsperiquetteDesign

A.BernabeManufacturing Support

P.BizetPE / TE

S.MasserotHuman Ressources

F.FaesQuality

F.ChevretonGeneral Manager - Atmel Nantes

G.TurnerVP and GM Microcontrollers BU

W.ApprichDirector of Finance

Bob AveryC.F.O.

P.RenaudIT Manager

Mikes SisoisCorp V.P. of IT




The vocation of ATMEL Nantes ATMEL Nantes SA includes a Product Group, covering definition, design and development in the field of complex integrated circuits, supporting customers in the design of their circuits, providing them with access to the ATMEL Nantes SA design techniques. - Marketing Microcontroller: defines strategy and manages development of activities for MCU (microcontrollers, other digital) - Marketing Aerospace: defines strategy and manages development of activities for aerospace - Application Group: Brings Technical expertise to support design-ins, Customizes existing Hard Ware/Soft Ware to design our products at customers, supports product introduction in the field including training, Hotline support - Automotive Business development: Defines long-term strategy and manages the development of activities for automotive. - Business control/Planning: Programs and ensures the funding of ATMEL Nantes development activities by obtained R&D contracts and monitoring project execution. - Product Engineering/Test Engineering: Validates and industrializes new products, improves performance of the company product range. - Design: In charge of the company's research and development activities in circuit design - Market communication (Marcom): Promotes and merchandizes ATMEL products using different tools (documents, advertising, multimedia supports (CD, Internet)…). - Finance: controls the financial flows, coordinates financial plans and the Annual Operating Plan (AOP), monitors the results on a monthly basis. Controls all ATMEL Nantes financial and contractual commitments (investments, licensing, commercial subsidiaries...). Maintains SOX 404 compliance. Manufacturing support: manages the subcontracted activities (assembly, testing and wafer supply) and the procurement of all ATMEL Nantes supplies, raw materials, equipments and services. Human resources: Is responsible for submitting various proposals to the executive committee, and applying and enforcing the social policy of the company. Includes Personnel administration, Competence improvement and internal mobility, Social and legal relationships, Hygiene, working conditions and health, General means and Internal communication. - IT: management of software and hardware for scientific and management applications. - Quality: Ensures the management of the company's quality system and runs the total quality management activities.




4. ATMEL QUALITY MANAGEMENT 4.1 ATMEL Corporate Quality Organization The company Quality Organization reflects the ATMEL business model, with quality managers in charge of one B.U., and quality managers in charge of a manufacturing facility. In some particular cases, for example when both a B.U. and a manufacturing facility coexist in the same site, the Quality Manager covers both types of activities.

At corporate level a dedicated quality council is in place. The corporate quality council includes quality managers from all ATMEL Business Units, manufacturing locations and field quality representatives. Its members meet annually during “Worldwide face-to-face meetings” and its key outputs or proposals are presented to, and discussed with ATMEL top management. His role is the following:

Reviewing key quality matters and events Defining, implementing, maintaining the

quality system and reviewing its efficiency Defining goals and key initiatives Managing priorities and assigning

necessary support and resources Identifying best practices and aligning

processes accordingly between divisions, sites, areas

Generating related action plans

THINK «GLOBAL», ACT «LOCAL»

QUALITY MANAGEMENT

(FAB 5)

CORPORATE QUALITY COUNCIL (SJO)

ATMEL CEO &

BOARD OF DIRECTORS

WW Quality Team

Alignment and coordination

Key Corporate initiatives

Monthly reviews & reporting

Face to Face Meetings

Local Quality Management Team

Local coordination & initiatives

Monthly reviews and reporting

QUALITY COUNCIL (BU MICROCONTROLLERS)

QUALITY MANAGEMENT

(FAB 7)

QUALITY MANAGEMENT

(FAB 9)

QUALITY COUNCIL (BU RF & AUTO)

QUALITY COUNCIL (BU IMAGING)

QUALITY COUNCIL (BU MEMORIES)

V.P

. & B

oard

of D

irect

ors

FIELD QUALITY MANAGEMENT

(Europe, Asia, Japan)

QUALITY COUNCIL (BU ASICS)

THINK «GLOBAL», ACT «LOCAL»

QUALITY MANAGEMENT

(FAB 5)

CORPORATE QUALITY COUNCIL (SJO)

ATMEL CEO &

BOARD OF DIRECTORS

WW Quality Team

Alignment and coordination

Key Corporate initiatives

Monthly reviews & reporting

Face to Face Meetings

Local Quality Management Team

Local coordination & initiatives

Monthly reviews and reporting

QUALITY COUNCIL (BU MICROCONTROLLERS)

QUALITY MANAGEMENT

(FAB 7)

QUALITY MANAGEMENT

(FAB 9)

QUALITY COUNCIL (BU RF & AUTO)

QUALITY COUNCIL (BU IMAGING)

QUALITY COUNCIL (BU MEMORIES)

V.P

. & B

oard

of D

irect

ors

FIELD QUALITY MANAGEMENT

(Europe, Asia, Japan)

QUALITY COUNCIL (BU ASICS)

KEY QUALITY GOALS 2006

Amount of volume returns / Billing : 0.5%

Capability objectivesFront-end / Back-end (critical nodes) : 80% > 1.67

FACR Cycle Time : - 90% on time (< 2 days) (Working days upon receipt) intermediate report

- 75% on time (< 10 days) final report

Common Goals :

Particular focus on :

AOQ (Electrical and Mechanical) (as defined in each B.U.)

OTD (as defined in each B.U.)

KEY QUALITY GOALS 2006

Amount of volume returns / Billing : 0.5%

Capability objectivesFront-end / Back-end (critical nodes) : 80% > 1.67

FACR Cycle Time : - 90% on time (< 2 days) (Working days upon receipt) intermediate report

- 75% on time (< 10 days) final report

Common Goals :

Particular focus on :

AOQ (Electrical and Mechanical) (as defined in each B.U.)

OTD (as defined in each B.U.)




4.2 ATMEL Nantes Quality Organization

Organization chart of ATMEL Nantes Quality Division

QUALITY ROAD MAP

2006

2003

2009Worldwide Planning Team

« Global Reliability

Sales Process Improvement

Environmental Policy (Lead free, ISO 14001)

One Face to the Customer

Worldwide Quality Team

One Voice to the Subcontractor

Atmel Worldwide ISO / TS 16949 Cerfication

Total Customer Satisfaction

Automotive Steering Committee

Global Fab, Global Foundry

Business Excellence

Statistical Process Control

PRODUCTSP. Houze

PROCESSB. Bijeire

PROGRESSH. Grimaud

CHIEF INSPECTORC.Ferre

New product Qualification Reliability Monitoring Analysis of customer specificationsCustomer audits/visits organization. Dispatch of customer documentation (Quality manual, Qualpack, Q/R reports, PCN,…)Customer claims and returns management

Quality system management * Processes Management * Certifications (ISO 9001-v2000) * Internals AuditsCustomer satisfaction measurementCoordination of improvement projectsDoc –control Environment management

Privileged interface with space agenciesAerospace Certification ProgramsAerospace operations

Quality support front-end/ back-end (ATMEL and externals Fabs)Technology analysis Subcontractor quality management Management (audit, qualification, reporting, alerts) - dotted lineSPC Data analysis

AUTOMOTIVEP. Lecuyer

Analysis of specific requirements for automotive customerQualification of new automotive productsCustomer audits/visits organization. Dispatch of customer documentationAutomotive customer claims and returns managementDesign quality support

NANTES QUALITY MANAGEMENT

F. Faes




The managing director of Quality is assisted by the heads of the Products, Automotive, Processes, Progress and by the Chief Inspector. The "Progress" manager is in charge of maintaining the Quality System. The Chief Inspector is the official representative of the company dealing with Aerospace certification bodies (CNES, ESA and DSCC). On the responsibility of the chief inspector, a T.R.B. (Technical Review Board) is in charge of reviewing and validating all process changes. It includes representatives from all related areas (design, front-end, assembly, testing, technologies) and meets on a monthly basis under the authority of the "Chief Inspector" manager with attendance of the Quality managing director.




5. PRODUCTS AND APPLICATIONS As stressed in the name of the Business Unit, the key domain of expertise of the Nantes product group is microcontroller. Historically started with 8-bit C51/C251 ROMless and ROM products (Intel licensed architecture), it has been progressively expanded to OTP’s (one time programmable), and to Flash-based microcontrollers and a variety of derivatives featuring A/D converter, USB interface, PCA, SPI, CAN controller, MP3 decoder and more. The ATMEL proprietary AVR® 8-bit RISC core is now the mostly used architecture for new microcontrollers developed in ATMEL Nantes and the expertise is also expanding to the new AVR32 32-bit MCU/DSP architecture. ATMEL Nantes is also a major competence center for Aerospace dedicated products. A broad range of radiation-hardened products is supported, including 32-bit processors, memories, ASICs, FPGAs and application specific products. In addition to these expertises, ATMEL Nantes has developed a FPGA conversion service (ULC = Ultimate Logic Conversion) that allows turning programmable devices into a less-expensive ASIC version.

MBU

Automotive Microcontrollers

Aerospace and military products

MultimediaSmart card reader IC’s

Reprogrammable FPGA’s

ULC

Atmel NantesProducts

Lamp Ballast

Microcontrollers Flash with USB

Controlling product




The ATMEL Nantes products are present in various market segments, from multimedia to Aerospace. Here are some typical applications depending on the markets addressed: MULTIMEDIA

Microcontrollers in decoders, PC display, DVD and MP3 players, video projectors…

ULC’s for set top box, photo-printers, display controllers, pad games

TELECOM

Microcontrollers for card readers, GSM, PABx, phone set and answering machine, …

ULC’s in xDSL, base station decoder, switching routers…

AUTOMOTIVE

Microcontrollers in parking assistance, airbag and brake systems, radio systems, seat positioning, …

Dedicated ASSPs and microcontrollers in VAN, CAN and LIN multiplexing INDUSTRIAL / MEDICAL

Microcontrollers for smart card readers (bank, PC and GSM), measurement equipments, alarm systems, industrial display, glucometers, lighting systems, motor control, …

ULC’s in various applications

AEROSPACE

Microcontrollers, microprocessors (licensed SPARC RISC 32-bit architecture) and DSPs Rad Hard applications (satellites, launchers)

Rad Hard Memories (SRAMs, FIFOs, DPRs and EEPROMs) Rad hard ASICs and FPGAs for various applications




6. PRODUCTS AND SYSTEM CERTIFICATIONS ISO 9001 V2000/ ISO-TS 16949v2002 In July 1991, ATMEL Nantes received the ISO 9001 certification from AFAQ (French Association for Quality Assurance), in recognition of the conformity of our quality system to ISO requirements. It was renewed in 1994, 1997, 2000 and 2003, according to the revised ISO standard (v2000), for a 3-year-period. This agreement covers the activities of development and manufacturing. ATMEL Nantes had been officially granted by AFAQ for a 3-year period for the ISO TS 16949 certification. As a consequence of the sales of the Fabrication activity, ATMEL Nantes cannot be ISO TS 16949 certified anymore. An attestation of conformity to ISO TS 16949 is nevertheless targeted in 2006. ESA/ESCC QML In the context of the ESA (European Space Agency) qualification programmes, ATMEL Nantes has been audited and judged apt to produce components for European space programmes. (The respect of ESCC specification N°24600 is part of our Quality policy). ATMEL Nantes also undertook, together with the European Space Agency, a capability approval for the ASIC 0.35 um RT (Radiation Tolerant) technology, finalized in 1995. An ESCC E.Q.M.L. experiment has been completed in 2005. It should lead to official certification in 2006. DSCC/QML After consulting US authorities and performing an internal audit, ATMEL Nantes was declared, in 1991, in compliance with MIL-STD883 (for the manufacture of military products). ATMEL Nantes' products are included in the SMD procurement files (Standard Microcircuit Drawings) managed by the DSSC (Defence Supply Center Colombus). Furthermore, QML certification was granted by DSCC in December 1999, defining a wide range of products compliant with the new MIL-PRF-38535 class Q and V (space and military). In October 2000, this certification was extended to RHA (Radiation hardened) products and in October 2004 to 0.35 um & 0.18 um technologies and high pin count packages. Sarbanes Oxley Section 404 In 2004, ATMEL Nantes has contributed to the Sox corporate ATMEL certification program. This new financial system, operational first time in 2004, aims at keeping financial business cycles under tight control. It applies to any public U.S. company.




III. MANAGEMENT COMMITMENT AND QUALITY POLICY 1. MANAGEMENT COMMITMENT ATMEL Nantes Board of Directors is committed to the development and implementation of a process management system compliant with the standards listed in the References paragraph. Through periodic management reviews, processes performances and generals indicators are reviewed for compliance to target. Corrective actions are identified when goals are not reached and related resources allocated if necessary.

2. ATMEL NANTES MISSION STATEMENT ATMEL Nantes has adopted the quality policy of its mother company ATMEL:

This policy stresses the historical core values of ATMEL Nantes, in particular customer focus, innovation and Continuous Improvement. This corporate policy is cascaded in a local policy, which defines the specific orientations of Nantes site. This policy is reviewed every year during the management review. This policy is supported by local improvement initiatives defined at both functional and processes levels.




3. 2006 ATMEL NANTES INITIATIVES

Design Development Improve the team spirit with marketing, App Lab and PE. We are all in the same boat. Build a strong recognized technical identity by means of the innovation process. Spreading of technical information inside and outside Keep our design development processes under control. Succeed in the introduction of the AVR32 in Nantes as a new tool for multiple applications Be more proactive in the search for funding to participate to our R&D development costs.

Automotive 2006 Targets

Secure ramp-up of existing design-win and create new ones Finalize automotive qualification of standard AVR from the automotive roadmap Get first AVR grade 0 qualified (150oC) Get first HV (Battery Voltage) AVR working silicon Develop new automotive dedicated AVRs : AVR_Motor, AVR_Led, AVR_HIDLight, AVR_Sensor … Define AVR32 strategy for Automotive market Develop Sales Support tools for automotive market : AN, White Paper, DK, Press Release

Aerospace Continue to develop our Space business in Asia while increasing our Space business market share in NA & Europe Deploy our Marketing & Sales forces on Galileo program to get the maximum of design-wins. Secure our mil-aero business needs (2006-2010) through LBO and die-banking and find out recovery business in the commercial offering suitable for mil-aero applications such as ULC. Progress of new rad-hard product developments: FPGA RH 300Kgates, EEPROM 4/16MBits, Sparc HIREL version Agree with the Space Agencies on new 2006-2009 R&D plan (3M$ funding per annum)

Business Controlling Keep Budget achievement on-track(392M$ MBU, 110M$ Nantes) MBU Demand & Billing forecast management in APO DP Grants : Achieve budget objective (4.4M$) and secure new contracts (4Mbits, SparcV8 FM, …) Active contribution and move to Corporate Planning tools (including appropriate Database management) Order fulfilment: OSD OTD at 85% av. NTO Products variants analysis for rationalization purpose. Project Management re-engineering (simplification, efficiency) SOX : «Revenue & Receivables» cycle testing successful

Product Engineering Contribute to improve new µC introduction

Quality Improvement quality (TEPRO) and robustness Be on time (even ahead!) to reach BU OTD target (85% vs OSD)

Contribute to support Galileo along business plan guide-line Apply test roadmap : Introduction of 2 test platforms

Follow environment changes

Enhance relationship with Norway TSTI becoming ACP Nantes-operations becoming MHS, a supplier GDT, SDL out. Go live with LTS and build the technical database

Permanent: improve yields, reduce costs

Marketing - Micros & ULC

To define, market and support the development of microcontrollers in specific application segments:

Audio (SND3) – Reference Design/Design-ins Ballast – Push PWMX series define new products Industrial CAN – Push AVR CAN design-ins Motor Control – Use PWMX series – define dedicated Micro USB – design-in for AVR USB push C51 USB designs SCR – Increase sales of existing products

To offer an excellent FPGA conversion service to our customers for cost reduction and integration purposes. Engage with Key Customers in above mentioned specific segments Gain mind share from ATMEL Sales/FAEs to push our key products




Human Resources Build and maintain an excellent social climate with new employee representatives Salary Management: annual salary review, ‘interessement,… Employee development: Internal/External training, carrier evolution, DIF, … Position HR as a Business partner to our organization Communication : New identity for the new site Recruiting : maintaining a high satisfaction level

Manufacturing support Keep subcontracting process under control Get available capacity in line with demand at all workshops Move to corporate planning tools Define and set up multi-source subcontractors for automotive Optimize contracts with suppliers including MHS Drive Nantes site re-engineering facility

Application Group Support New Product Introduction by providing on a timely fashion, tools ready to use by Customers with professional documentation Validate New Products in Application. Develop special adaptation to existing HW/SW to support design-ins. Deploy a common hotline database with Norway and stay online with response time objective while growing the activity. Manage with the Marketing the Trainings and Fair attendance, then provide the presentation material and demos with top-notch quality. Contribute to new Product definition such as AVR 3000

Finances Sox404 : last gaps remediation Swissco Model: Tax –sytems-organisation impacts MHS Golive: As short as smooth and smilling LTS Back-end for Product Costing: Out SDL , welcome LTS P&L analysis: Mastery of COGS and AVR+C5X knowledge

Logistics Group Propose solutions for ATMEL WW Distribution and get acceptance from all sites Strategy Implement a new European Distribution organization Spreading of best logistics practices and harmonization of tools, processes and documents. Contribute to ATMEL Corporate initiative “OTD improvement”. Enhance the ACP Asia Distribution Center processes Integrate new Swissco model

Organization

Improve the process of identification of the materials versus foreign trade export control criteria Develop buffer stock for ATMEL Classic materials in Europe Logistics

support of Sales

Support sales efforts to develop new logistics agreements (consignment stocks, VMI, buffer stocks, EDI, bar codes…)

Marcom Ensure successful introduction of AVR32/AP7000 Improve Public Relations to have more articles and better visibility of our products in the medias Continue branding AVR name through a dynamic advertising strategy and other promotional actions Ensure good representation of our products in major tradeshows Push for corporate web site improvements required to support BU products (major gap compared to competitors’ web sites) Improve technical documentation management with better tools and coordination between Nantes & Throndheim Help to optimize the management of product data through various intranets/webs/cd-rom syste

Quality Contribute actively to the Corporate Initiatives : “1V”, “1 F”, “GF”, “SPI”, Automotive Quality Team”,… Rebuilt the Quality System in the new ATMEL Nantes configuration (NTO)

Certification:

Obtain ISO 9001 renewal and Certificate of Compliance to TS 16949 Complete ESCC-QML 0.35µ certification Launch ESCC-QML 0.18µ certification project (NTO)

Continue to develop the Automotive System (Throndheim) Sustain the MBU Automotive growth : Quality integration in new product introduction process, DFMEA deployment, Qualification, customer support, resources. Resize the capability and capacities of the laboratories : “Technology Analysis”, “Qualification” (NTO). Improve reliability / customer support for MBU products (SJO)




4. CUSTOMER FOCUS The ATMEL customer focus is continuously granted, assessed and improved thanks to a set of various processes, tools, reviews and initiatives summarized here below: New products: A strict selection of new products to be introduced: the business case process, driven by marketing, ensures adequacy of the ATMEL offer with the market needs. In particular it includes the mandatory identification of alpha customers, willing to benefit from the advantages of the new product at its earliest stage. A careful management of the development project: this is ensured by dedicated project leaders, specifically selected and trained, who coordinate all necessary activities with their project team, and report periodically the project status to the management from technical, logistical and economical standpoints. A stringent qualification process, likely to bring evidence that all necessary customer reliability needs are met before product release. Current products A deep analysis of customer specifications, which may include specific needs either technical, logistical or documentation related. These specifications are circulated under marketing control over the departments concerned and may result in “special” products if needed. A dedicated “hot-line” available to customers who are invited to submit their difficulties or concerns for a timely applicative support. Dedicated quality resources in charge of analysing and resolving product quality issues. A set of various documents and/or web data intended to help customers to optimise the usage of the product in their application : data sheets, bug lists, application notes, qualpacks, reliability monitor program, product change notices (PCN’s), etc… General The top management regularly reviews customer-oriented metrics and key events. Beyond the day-to-day above described activities, a specific customer satisfaction program, supported by dedicated resources, is in charge of promoting and deploying the customer culture throughout the company. Its main contents are the following:

Performing periodic customer surveys: this measures customer perception to identify strengths and weaknesses, and to propose improvement initiatives. The key outputs of this survey are widely communicated within the company. The customer surveys may be completed by periodic “Sales Questionnaires” likely to bring additional information about customer delight as perceived by Sales.

Retrieving and analysing customer score cards as complementary information to the survey Organizing periodic customer conferences, wherein customers are invited to discuss openly

with the company staff all departments and levels included Promoting periodic business reviews with major customers. This aims at discussing various

strategic, technical, quality or logistical aspects so as to identify business improvement areas. Aligning customer-oriented processes, metrics and documents across the multiple sites of the

company (concept “one face to the customer”)




IV. ATMEL NANTES PROCESS MAP 1. GENERAL: MAIN STEPS FOR IC MANUFACTURING

Step Purpose Location

Technology Development

Process steps definition and simulation

ATMEL Fab or Subcontractor

Circuit Design

Behavioural and/or logic circuit description and simulation

Nantes

Circuit

Lay-out

Physical representation Nantes

Reticle

Definition

Define a circuit image for wafer fab equipment

Nantes

Wafer

Fabrication

Silicon wafer production ATMEL Fab or Subcontractor

Electrical Test

Electrical Test of Process Monitor


Probe

Product Testing at Wafer level (first functional test on dices)


Assembly

Wafer saw, die bonding, sealing or moulding

ATMEL Grenoble or subcontractor

Final Test

Electrical test of final product at different temperatures

ATMEL sites or Subcontractor

Product storage

Identification, handling, packaging, storage and protection

Nantes or ACP

Shipment and

Delivery

Delivery preparation process Nantes or ACP

LOCOS LOCOS

UndopedlayerBPSG1

Sog+ Etch- Back

BPSG2

LOCOS LOCOS

UndopedlayerBPSG1

Sog+ Etch- Back

BPSG2




2. ATMEL NANTES PROCESS MAP

The Customer-Oriented Processes: they are determined by the key interfacing phases between the

company and a customer, either potential or actual. Their performance has a direct impact on customer satisfaction.

The Support Processes: necessary for insuring the proper operations of the customer-oriented processes. The Management Processes : allow the necessary overall coordination and drive related initiatives.

Processes documentation Each process description includes:

- The flow of operations with related input and output data, - Indicators for performance measurement (effectiveness and efficiency) - Targets for the current period

And is available on Nantes Quality Intranet. Responsibilities and organization The ATMEL process approach, organization, roles of pilots and process owners, review, process documentation and codification are further detailed in PGMH0307 procedure. Processes interaction ATMEL Nantes turns its attention to interactions between processes, particularly to the “critical interactions”. Description of interactions is given in the “List and definition of interactions” document available in quality/intranet/processus.

ManagementM1 Lead the company and build the future – M1-2 Continuous improvement

Support processes

C1 New Product Development

Feasibility DecisionDesignC1-1/C1-2/C1-7

ValidationC1-3

IndustrializationC1-4 Introduction

C2 From market need to product availability

Quotation Demand ManagementSupport

Communication & Promotion

C6 Order fulfillment (supply chain)

C6-1 Order entryC6-2 Workshop management

Atmel & Subcontractors C6-3 Delivery

C7 Customer complaint Answer

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S3 IT S5 Purchasing Safety/EnvironmentM3 Human resourcesFinance

Sale

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M1-1 S&OP

Atmel Nantes - Processes Map




V. ATMEL NANTES PROCESSES DESCRIPTION

1. PROCESS M1 “LEAD THE COMPANY AND BUILD THE FUTURE”

Process description: This process describes the organization in place to lead the company. The following diagram shows the annual cycle of ATMEL Nantes management system review

Goals and objectives, as any others, are identified during the preparation of the Business Plan. The key inputs for defining this plan are the following:

The mid-term directions defined at corporate level for the overall company Eventually, some strategic business orientations or reorientations The Priorities defined by ATMEL Nantes Eventually some major changes in the business model

These elements are consolidated in the Annual Operation Plan (AOP) developed for a 18-24 month period and updated on an annual basis. In order to execute the AOP, each division is invited on an annual basis to define its key goals and objectives for the coming period. The AOP takes in particular the following inputs into consideration:

The performance of the processes as evaluated through process audits measured by process metrics and assessed during the process reviews.

The last customer survey The annual customer complaint review The annual corporate ATMEL goals and initiatives

ManagementLead the company and build the future - Continuous improvement

Support processes

New Product Development

Feasibility Decision Design Validation Industrialization Introduction

From market need to product availability



Order fulfillment (supply chain)

Order entryWorkshop managementAtmel & Subcontractors Delivery

Customer complaint Answer

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IT Purchasing Security/EnvironmentHuman resourcesFinance

Sale

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Sale

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S&OP


• Corporate datas• Quality system analysis

AO

P (b

udge

t)

Nov

/dec Meeting :

Annual board review

feb

Improvement actions plan for

the coming period

•Customer survey analysis•Indicators analysis •Internal and external audits analysis •Improvement actions plans analysis

Setting up of ATMEL Nantes policy and processes piloting (quarterly processes review)

During the year

Annual Processes Review

janv

Annual financial

ATMEL goals and objectives

ATMEL Mission

statement updated

AOP (finalized)Janv/feb




The annual priorities identified by ATMEL Nantes The various aspects of processes management are reviewed at different levels depending on their criticality The following diagram shows the ATMEL Nantes Reporting and Metrics Structure.

DEPARTMENT OPERATION REVIEWS All departments perform a systematic review of their operations on a monthly basis. This includes, as a minimum, identification of highlights, lowlights, and definition of prospects for the next period(s). QUALITY OPERATION REVIEW The same as in the other departments, and covering all quality aspects. CROSS-FUNCTIONAL REVIEWS Ex: PPC, S&OP monthly reviews. These particular reviews focusing on cross-functional subjects such as capacity planning or new product introduction. PROCESSES MANAGEMENT REVIEW (PMR) AND STAFF COMMITTEES This particular body aims at focusing on critical subjects, including quality aspects, escalation of unresolved issues, releasing unplanned resources, supporting major initiatives. In addition, PMR aims at defining quality goals and objectives and reviewing the efficiency of the quality system on a quarterly basis.

COMITE PILOTAGE QUALITE DIRECTION GIS

MONTHLY

PMRSTAFF COMMITTEES

ANNUAL BOARDREVIEW

Indicators reviewQuantitativeand Qualitative

Weekly reviewDepartment Operation review

Quality Operation ReviewWEEKLY / MONTHLY

INPUTS

AOP and Processes Review (Annually Process analysis, efficiency, relevance of indicators, improvement axes),Customer surveys…

STRATEGYGOALSMEANS

Activity indicators and process indicators and improvement actions

Cockpit chart of main processes and major improvement actions. Quarterly processes analysis

ANNUALLY

MONTHLY

Info

rmat

ion

colle

ctin

g

Overall processindicators and cross functional improvement actions

INPUTS

Process performance indicators, Cockpit chart, Quality goals, Internal and customer audits, Customer Survey, Evaluation, Market inputs, Benchmark, Scorecards,….

A PC D

OUTPUTS

Cross Functional Review : PPC, S&OP, …

A PC D

A PC D

COMITE PILOTAGE QUALITE DIRECTION GIS

MONTHLY

PMRSTAFF COMMITTEES

ANNUAL BOARDREVIEW

Indicators reviewQuantitativeand Qualitative

Weekly reviewDepartment Operation review

Quality Operation ReviewWEEKLY / MONTHLY

INPUTS

AOP and Processes Review (Annually Process analysis, efficiency, relevance of indicators, improvement axes),Customer surveys…

STRATEGYGOALSMEANS

Activity indicators and process indicators and improvement actions

Cockpit chart of main processes and major improvement actions. Quarterly processes analysis

ANNUALLY

MONTHLY

Info

rmat

ion

colle

ctin

g

Overall processindicators and cross functional improvement actions

INPUTS

Process performance indicators, Cockpit chart, Quality goals, Internal and customer audits, Customer Survey, Evaluation, Market inputs, Benchmark, Scorecards,….

A PC DA PC DA PC D

OUTPUTS

Cross Functional Review : PPC, S&OP, …

A PC DA PC DA PC D

A PC DA PC DA PC D




2. PROCESS M1-1 “SALES AND OPERATION PLANNING” (S&OP)

Process description: S & OP is the process, which brings together all plans for the business (customers, sales, marketing, development, manufacturing, sourcing and financial) into one integrated set of data and actions. Production scheduling is totally order-driven. All production scheduling activities are based on the Sales and Operation planning process. This monthly rolling process allows to adjust the orders start in

production based upon a forecast including actual backlog in SAP system and demand forecasted by Sales Force. Monthly manufacturing plans are then provided to each production area for execution and periodic meetings are held in order to compare forecast to actual implementation. Stock management of raw materials, consumables and spare parts is derived from these plans. The operating cycle of the S&OP process is described in the figure below :

I

Demand Supply

I

Demand Supply

Targeted

services & costsDecreasingservice level Increasing

costs

NREProduct

introductions

PE + DESIGN RESOURCE

Sales eventsSales forecast

Plannedproduction

Production capacities

inventories

DEMAND MEETING SUPPLY MEETING S&OP

DEMAND ANSWER DECISION

Marketing Supply / Business Staff

Month 1 Month 2

Demand Review

Demand Review

SupplyReview

Supply Review

One Month to understand and improve

Four weeks to synchronize Four weeks to synchronize

BU S&OP Meeting

BU S&OP Meeting

Weekly Supply verification of execution of decisions and the forecast consumption


Support processes









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3. PROCESS M1-2 “CONTINUOUS IMPROVEMENT” Process description: this process describes how is leaded the continuous improvement of ATMEL Nantes through periodic review of process indicators, management review of others quality indicators (market inputs, quality cost, customer satisfaction, audit results, excellence evaluation …) by the board of directors. As expressed in the ATMEL Nantes Policy, all ATMEL Nantes departments drive a culture of Systematic Continuous Improvement. Continual

improvement is leaded by the Quality Department through the implementation of “continuous Improvement” management process M2.

Improvement of processes Pilots and process owners in a quarterly basis review process metrics during the Processes management Review. This review may result in dedicated correctives actions whenever needed. The ATMEL Nantes audit team periodically audits all identified processes. As a result, some discrepancies may be identified and correctives actions implemented. On an annual basis, the performance of each process is co-reviewed by both process owners and the quality division. Once all processes have been reviewed, a process management review is performed by the top management team, allowing to access the performance of overall process approach, and resulting in new goals and initiatives for the coming year. These goals and initiatives are part of the AOP. (See process M1 “lead the company and build the future).

3.1 Customer satisfaction Since 1997, ATMEL has been driving periodic customer satisfaction surveys in order to get the perception from its customers on the company performance and level of service. A corporate ATMEL survey is performed every 2nd year maximum and provides ATMEL with information in 4 main areas: Product Technology, Quality and Reliability, Service and Support and Delivery and Logistics. An action plan is implemented further to the weaknesses identified in the survey results. A summary of the results and improvement orientations is communicated to Customers and ATMEL employees. Eventually ATMEL may perform some specific surveys depending on needs (example: Aerospace in 2003) The Customer satisfaction measurement process is detailed in PGMH 0297.

1

2

3

4Product Technology

IP PortfolioProduct Offering

Package Offering

New Product Introduction

Quality and Reliability

Shipment Accuracy

Change Notification Process

FA responsiveness

Manufacturing Line Fall out Rate

Q&R Improvements Over 12 months

Sales Availability and Support

Commercial PolicySample Availability

Local Field Application Eng. SupportFactory Eng. And Hotline Support

Feasibility Requests

Design-Kits

Design-In Support

Development Tool Offering

Technical Documentation

Web Site

Service Imp. over 12 Months

Product Lead Times

Flexibility

Delivery Performance

Early Warning SystemPerf. over 12 months

1 = Lagging the competition2 = Slightly worse than the Competition3 = Slightly better than the Competition4 = Leading the Competition

QUALITY & RELIABILITY

SERVICE & SUPPORT

DELIVERY &

LOGISTICS

PRODUCT TECHNOLOGYOVERALL

MICROS 2002

MICROS 2004

1

2

3

4Product Technology


Package Offering



Shipment Accuracy


FA responsiveness







Design-Kits

Design-In Support



Web Site


Product Lead Times

Flexibility





SERVICE & SUPPORT

DELIVERY &

LOGISTICS


MICROS 2002

MICROS 2004

2004 Satisfaction Survey :Microcontroller B.U

1

2

3

4Product Technology


Package Offering



Shipment Accuracy


FA responsiveness







Design-Kits

Design-In Support



Web Site


Product Lead Times

Flexibility





SERVICE & SUPPORT

DELIVERY &

LOGISTICS


MICROS 2002

MICROS 2004

1

2

3

4Product Technology


Package Offering



Shipment Accuracy


FA responsiveness







Design-Kits

Design-In Support



Web Site


Product Lead Times

Flexibility





SERVICE & SUPPORT

DELIVERY &

LOGISTICS


MICROS 2002

MICROS 2004

2004 Satisfaction Survey :Microcontroller B.U


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3.2 Internal audit Internal audits are performed in order to continually improve products, services, processes, and verify, reinforce and evaluate the efficiency of the quality system. The PAQA0178 specification describes the procedures used for planning and implementation of internal quality audits. Trained auditors independent from the activity being audited carry out internal audits. 3.3 Control of non conforming product PGMH0240 procedure describes the methods employed to ensure that non-compliant products are prevented from customer delivery through : - Identification and segregation in real time in the lot tracking system (SDL application) on Reflexion - Documentation of the non-conformity in a unique file of FNA001 application - Evaluation of risk by the engineering and quality groups - Disposition of the product by the quality group - Notification to those concerned through the link between FNA001 and e-mail PGMH0240 applies also to suspected product (manufactured in the same period or with the same equipment as the non-compliant lot). Non-conforming product is identified and held in the lot tracking system, preventing re-introduction to the production flow unless authorised by the quality group. A customer waiver is requested any time a product delivered is different from that currently approved.

FNA001 data baseFNA001 data base

1

2

3

4Product Technology


Service and SupportDelivery and Logistics

Overall

1 = Poor2 = Fair3 = Good4 = Excellent

1

2

3

4Product Technology



Overall


2003 Satisfaction Survey : Atmel Aerospace(About : Overall, Product technology, Quality and reliability, Delivery and logistics, Service and

support)

Quality and ReliabilityOverall

1

2

3

4

Product Quality & Reliability(9)

Shipment & associatedDocumentation (8)

Shipment on arrival (9)

Product Change NotificationProcess (9)

Failure AnalysisResponsiveness (9)

Manuf. Fall-out Rate (8)

Q&R Improv. 12 Months (9)

1 = Poor2 = Fair3 = Good4 = Excellent(Total answers)

1

2

3

4









1

2

3

4Product Technology



Overall


1

2

3

4Product Technology



Overall



support)


1

2

3

4









1

2

3

4










support)


1

2

3

4









1

2

3

4












3.4 Corrective action In order to assure total customer satisfaction, the root cause of main abnormalities and non-conformities is identified in order to allow correction. The rules for corrective actions tracking are described in PGMH0275 and shared by all departments of ATMEL Nantes. Responsibilities

Corrective actions related to Are locally tracked for implementation and

effectiveness by New product development Project leader and project coordinator Product qualification and reliability Quality product department Subcontracting Subcontracting Quality Assurance department Information systems Information Technology group Customer complaints Quality and all concerned functions Customer returns Quality product department Internal audits Quality progress department

A database with access through intranet provides a unique tool for multidisciplinary actions management when required. 3.5 Preventive action In order to increase the efficiency of ATMEL Nantes, the identification and implementation of preventive action is encouraged at numerous steps:

- At new product development with a systematic FMEA performed for each development project and the use of wind-up reports

- At technology development with the use of FMEA methodology (and wind-up reports from project

- During manufacturing through process change validation, process step capabilities improvement, systematic analysis of abnormality

- At product & technology qualification through reliability tests. The process approach developed allows each process owner to identify actions for the improvement of the performance through risk analysis.




4. PROCESS M3 “RESSOURCE MANAGEMENT” Process description: This process describes the organization to manage human resources. It is one of the main missions of the ATMEL Nantes board of directors to identify the resources needed to reach the objectives set in the Annual Operation Plan (AOP). A monthly meeting of the director’s board allows to periodically verify that resources, either financial, personal, facilities,

information, technologies or suppliers are in accordance with the needs or to take appropriate action when necessary.

4.1 General All employees are recruited or promoted based on their appropriate education, training, skills and experience. These characteristics are recorded in their personal data file (CV, candidacy analysis, job description, etc.). 4.2 Competence, awareness and training a) Job description All employees have job descriptions, which mention necessary skills in terms of knowledge (technical), know-how (methodology) and behavioural aspects. In some cases (when several employees have the same job), a set of selected competencies is determined to individualize the job description. It helps to be more precise depending on the organization needs and to identify the grading level related to the Collective Agreement. b) Performance appraisal review The annual performance & skills review is the basic tool used to identify the needs in term of skills. Most of these needs are addressed by the annual training plan, but there are other ways to increase key competencies such as: coaching, internal or external exchanges, experience feedback analysis, documentation, experience developed within a project or a working group, etc… An annual review process is currently being set-up between each manager and HR in order to identify any unexplored potential and competency needs. The effectiveness of the training actions is measured and assessed by the wind-up annual training report, and through the annual performance & skills review. The quality objectives and mindset are reminded, illustrated and encouraged in weekly, monthly or quarterly meetings as well as through the annual performance & skills review. Quality tools such as


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8D and other problem solving methodologies give the opportunity to reinforce continuously the quality attitude and employee contribution. All records of education and training are available in the HR training department and in intranet database. Individual skills and experience are available in a “skills review document». Copies of these documents are submitted to the HR department.

c) Training program In order to define the annual training plan, each division has to formalize its own training needs according to the company strategy for the coming year in the form of a “needs analysis”. HR division set up a training committee to be sure to meet the different department expectations and also support different initiatives to import new skill. Moreover, specific training is given to each newly hired employee to explain company strategy, quality, product lines, safety, organization and general administration. Records are kept in centralized software in HR, from the attendee’s sign-off on the time-sheet. These records are never deleted.

Performance appraisal Jo

b de

scrip

tion

SkillsSkills==

Hard & soft competencies

Performance =Performance =Quantitative & qualitative

achievement

Objectives

Employee Development

Com

petencies model




d) Employee motivation and empowerment ATMEL Nantes has different processes to motivate employees to achieve quality objectives, continuous improvement and an innovation mindset: - A “Manager’s Tool Kit” lays out the HR processes used by the managers to manage their employees on a day-to-day basis. - A “company result benefit” amount is based on billing and quality service criteria and distributed on a quarterly basis. - Various communication methods are used to raise the most important financial, industrial, strategic or quality facts to the employees: monthly or quarterly meetings, newsletters and flyers. - An award process (with 4 recognition levels) provides an opportunity to recognize any outstanding performance. - ATMEL Nantes has defined a core values system used as a reference for the award procedure and the performance appraisal review e) HR information system Most of the basics documents and explication are available on the HR information system.




5. PROCESS C1 “NEW PRODUCT DEVELOPMENT” Process description: from a market demand, create, develop and industrialize a new catalogue product according to a target specification, to an expected project budget, an expected manufacturing cost in a given delay. ATMEL Nantes SA ensures that the new products will meet customer’s requirements in term of performance, cost and availability through the New Product Development Process.

General Process for New Product Development

5.1 Project management The Product Line Marketing Manager is in charge of the new product selection process (Business Case) from proposal to Job Approval by management. A Project Leader is empowered by the Project Planning Committee (PPC) after the BC approval at the latest. PPC decides on arbitration and allocation of resources. The Project Leader manages a team of experts in functions involved in the project: Marketing, Integrated Circuit Design, Product Engineering and Product Application… He prepares all product design and development activities through a Product Implementation Plan. New products are developed as planned in the New Product Development process. Each milestone of the Product Development is concluded with a formal meeting and conclusions of

the meeting are recorded. In addition, design and development technical reviews are held at appropriate stages, for verification and validation of specific features of the product.

Customer need analysis Marketing analysis Technical feasibility

business case

BC approval

MARKET (CUSTOMER)

Product implementation plan and marketing implementation plan

PIP approval

Product design (and FPGA step if requested by the project)

See processes C1-1 and C1-2

FLDR approval

Wafers sample production. Evaluation and qualification

See process C1-3

EVR approval

Qualification ans validation See process C1-4

IVR approval

CUSTOMER Full order entry and delivery

PPC

PPC

PPC

PPC

PPCProcess C2

FPGA to Alpha

customer if requested

Sample to Alpha

customer if requested


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Technical reviews with the customer can be held at important stages of the project, as defined in the contract between the two parties. The multidisciplinary content of the Project Team enables rapid technical exchanges and facilitates decisions and clear assignment of responsibility. Project planning is updated on a regular basis during the product development (weekly project team meetings) and validated by the PPC (on a monthly basis). The Project Team has authority to perform Risk Analysis based on FMEA methodology. Risk ranking and actions to reduce the risks are reviewed at each milestone of the project. ATMEL Nantes ensures confidentiality of customer-contracted products and project under development (PGMH0242) All changes, including changes caused by the alpha customer, are referenced, reviewed, approved by the Project Team under the Project Leader responsibility. The changes are validated by the alpha customer before implementation. For existing products, the procedure to perform, verify and validate the changes is the same as those concerning a new product development. When required, any change related to the product or to the manufacturing process is notified to the customers (PAQA0128). 5.2 Step 1: customer (market) need analysis The Product Line Marketing Manager is in charge of the new product selection process (Business Case). 5.3 Step 2: Product Implementation Plan (PIP) The PIP defines the project milestones, tasks and related documentation:

- Product specification, - Product qualification including alpha customer specific requirements, - Project work package definition (workload, schedule, qualified resources, cost), - Risk Analysis and Assessment, - Overall schedule and cost for development, verifications, validation, qualification,

industrialization, - Product Documentation Plan which lists all required documentation, including customer

references, specifications, technical documentations and records required at each milestone of the project.

- Product Validation Plan which defines the acceptance criteria for the product. 5.4 Step 3 : Product Design See PROCESS C1-1“LIBRARY DESIGN”, PROCESS C1-2 “IC DESIGN”, PROCESS C1-7 “IP DESIGN” Design and Development inputs Design input requirements related to the product are identified and documented during PIP implementation, including:

- Statutory and regulatory requirements and the results of contract review activities. - Cycle of learning of previous projects for current and future projects of a similar nature (windup reports,

electronic design database, bug lists, checklists, hotline) - Functional and performance requirements as defined in the customer specification, - Other requirements essential for design development (design rules, simulation models, design flow) - Manufacturing requirements (rules for manufacturing, process capability, wafer and test cost, yield,

production and test capacities) - Quality level target and associated requirements (design and reliability rules, wafer fab and test flows)

Special Characteristics Special Characteristics, if any, are identified during Customer specification analysis, risk analysis, and then during design phases. Process Special Characteristics are taken into account in the Control Plan.




Product Special Characteristics either specified by the customer or identified during design phases, are monitored during wafer fab process or during electrical tests. Design and Development outputs Design outputs are validated against design input requirements through advance design methodology (allowing re-usage of validated libraries and blocks), standard design flow, and cycle of learning of previous design (checklists, bug-lists) Design results are documented and reviewed with experts (Intermediate Design Review, Final Design and Layout Reviews), including:

- Risk assessment - Product Special Characteristics identification - Simulation results, - Error-proofing, waivers, - Technical documentation including datasheet and user’s guide

Design and Development reviews Technical Design Reviews and Final Design and Layout Reviews are organized as planned in the PIP.

- They are conducted by the Project Leader involving the project team. - Attendees of such reviews are Design department representatives and experts as requested

by the design stage and/or specificity. Standardized review reports with action plan are issued and recorded, using the internal electronic network. Design and Development Verification Design verifications are performed at appropriate stages, depending on the project, to verify design stage output compliance with input requirements:

- Systematic circuit simulation, timing analysis, - Design check completion (DRC, LVS,...), - FPGA generation are performed before releasing mask fabrication and starting any silicon

material. The design verification measures are recorded by the Project Design Team. Control of Design and Development Changes Design changes are referenced, reviewed and approved by authorized personnel. During product development, all design changes are validated by alpha customers. ATMEL Nantes SA Application laboratory analyses and checks the impact of all design changes regarding the customer system in which the products already delivered are used. All changes are recorded using the internal electronic network, and communicated to the customers through multimedia support (CD, ATMEL Internet site). 5.5 Step 4 : Product Evaluation See PROCESS C1-3 “PRODUCT EVALUATION” Validation results are documented through standardized reports, and reviewed during a Validation Review as planned in the PIP. Design failures, if any, are documented in the validation reports; for "cycle of learning" purposes, failures are entered into the internal electronic network ("Bug list" directory). Design validation is also referred to as reliability monitoring. Depending of their cause, failures are addressed by the relevant service; generally, a design change has to be implemented on the product to meet project objectives. ATMEL Nantes SA disposes of appropriate laboratory facilities for device failure analysis and requires customer acceptance for analysis of problem met during qualification testing. Validation is performed first on diffused wafers to get the earliest information, then on first prototypes packaged.




Validation is performed by all development skills (Analog Block Design, Integration Design, Product Engineering, Application Lab services) and at all by the customer on its application. Validation covers the whole product specification range (eg. Commercial, Industrial & Automotive) through a single set of measurements. In a second step, the Product Validation Plan defines process corner run allowing the product capability evaluation at the limit of the process. A new batch is run, and parts of each split are characterized to measure product performance. Topological and Electrical design rules may be adjusted to process conditions according corner run characterization results. The product validation uses the same suppliers, tooling and manufacturing processes as will used in production. 5.6 Step 5 : Product Industrialization See PROCESS C1-4“PRODUCT INDUSTRIALIZATION” After the validation review, the product responsibility is transferred to the Product Engineer. New products are closely monitored during volume ramp-up phase : operational results such as manufacturing yields, test times and manufacturing costs are tracked for every new product . Once this phase considered as completed, products enter the overall monitoring process (based on manufacturing yields and costs analysis), which as a minimum is reported monthly during business review.

5.7 Supplemental Processes

Space range products: For space range products customized products, a supplemental flow is set up in order to comply with the space specific requirements for product development. This flow is described in PGMH0230 “Hi Rel Project” procedure

Customerneed

Customerneed Feasibility

studyFeasibility

study ATMEL Fab

Selection

ATMEL Fab

SelectionProcessQualification

ProcessQualification

Selection among the ATMEL Fab (techno, capability…)

Process evaluation

Audit

Selection among the ATMEL Fab (techno, capability…)

Process evaluation

Audit

Process & procedure definition

Qualification tests

Process & procedure definition

Qualification tests

MANUFACTURING MARKET

Product Manufacturing (wafer fab)Product Manufacturing (wafer fab) CustomerCustomer

NEW PRODUCTINTRODUCTIONMARKET

PEPE PEPE

QualityQuality PEPE

QualityQuality

See Process C6-2 Subcontracting See Process C6-2 Subcontracting




6. SALES PROCESS (EXTERNAL PROCESS) Process description: this process is described in the CPQ2025. This is a “delocalised process” for ATMEL Nantes. The ATMEL sales represents the interests of the customer at any time within the company and is responsible for booking of orders

Sales offices are part of the Colorado Springs’s ISO TS 19 946 certificate and are audited by Underwriters Laboratories periodically. The ability of sales to meet ISO/TS requirements is currently being strengthened through different initiatives:

- Deployment of the Sales Process by the SPI team (Sales Process Improvement a corporate initiative)

- Internal audits organized by ATMEL Nantes quality team - Quality Training (ex: quality automotive training…)

The figure below explains the different step of the sales process.


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Manage communication

Manage customer claims & RMAs

Maintain database

Continuous Sales Process Improvement

• Motivate• Qualify

• Register• Classify• Analyse• Validate• Propose

• Iterate• Win/lose

• Record• Check• Capture• Acknowledge

• Warn• Cancel• Reschedule• Change

• Billing• Cash

Customerrequest Quotation Negotiation

Purchaseorder Backlog Revenue

Customer

Satisfaction

M

CUSTO

R E

Satisfaction

M

CUSTO

R E M

CUSTO

R E

Expectation

M

CUSTO

R E

Expectation

Expectation

M

CUSTO

R E M

CUSTO

R E Monitor customer satisfaction and develop business relationship

☺☺




7. PROCESS C2 “FROM MARKET NEED TO CUSTOMER RESPONSE”

Process description: starting from market/customer needs and the way this is handled by the marketing forces The figure below explains the marketing process.

7.1 Answer to customer request for quotation (RFQ) Sales check the customer Request For Quotation and transmit it to the adequate business unit. The Marketing checks then the customer RFQ and decides if it makes sense to do a feasibility. (If customer wants a quick answer (less than 24 hours), Marketing prepares a budgetary quote). Marketing check margin aspects versus customer target prices, check logistics issues if any, and each technical staff check if they can meet the customer requirements and provide Marketing with constraints. Marketing analyse all data to determine the answer ATMEL can do to the customer and provide its answer to sales with all relevant information


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Market needsCustomer needs ( Request for quotation, request for information,…)

MARKETING

no

noFit BU strategy?

CustomCollect customers requirements

New development?

Feasibility OK?

Check Feasibility

no

Standard

Feasibility OK?

Process C1 new product

development(Business Case)

Check Feasibility

reject

yes

yes

reject rejectno

no

Marketing consolidate datas,format the answer and

transmit it to Sales

yes yes

yes

Sales transmit proposal/ quotation to customer and customer feed back to marketing

See Sales processSALESSALES

OK? Review the response

Purchase order

Customer ☺Customer ☺ C6, C6-1

New?

Standard or

Custom ?

Budgetary Quote




“Feasibility Request” process and Business Planning tools allow to confirm that the product can be supplied accordingly to the customer requirements. This confirmation is provided to the customer through the ATMEL Sales Network.

7.2 Business case elaboration : feasibility study

The Product Marketing Manager is fully responsible of the product selection process up to PIP decision (see process C1 chapter), he is in charge of the: - The definition of a new product corresponding to many customer needs - The product definition documents elaboration (business case) with all concerned functions. - The partnership development and interface with the Alpha Customer. The Business case contains: - The product concept and main functions definition, - The business analysis (corporate objectives, competition, market size, revenue), - The partnership possible identification (Alpha and Betas Customers), - The strategic Fit Review - The product Specification definition - The Feasibility study analysis including alternative solutions (Design to Cost Analysis) and Preliminary Identification of Product Special Characteristics - The Business analysis (Return On Investment, Figure Of Merit,…) 7.3 Business plan Business plan is a recently new requirement in the group, meaning that all new strategic decisions to follow a particular market or major application will require that a Business Plan be presented to the operational staff. The Business Plan will follow the classical route for a business plan and will include all major information on terms of market, competition, risk and scenarios to all management to take a decision. We have subsequently decide to present Business Plans for product lines that have already been created to have a reference data base that we can look back on. In the future once Business Plans are accepted the product manager can present their first business.

MARKETINGnoFit BU

strategy?

CustomCollect customers requirements

New development?

Feasibility OK?

Check Feasibility

no

reject

yes

yes

reject rejectno

no

Marketing consolidate datas,format the answer and

transmit it to Sales

yes yes

yes

New?Budgetary Quote

Feasibility OK?

Process C1 new product

development(Business Case)

Check FeasibilityStandard Standard

or Custom ?




8. PROCESS C6 “ORDER FULFILMENT (SUPPLY CHAIN)” Process description: the main goal of this process is to satisfy ATMEL Nantes commitment in terms of quality and delivery date (Original Scheduled Date):

- Initiate wafer start or back-end start - Follow up production work-shop and transits - Organise the shipment.

In case of delay or ship-ahead, make the adequate early warning.

As explained in the process M1-1 S&0P the production scheduling is totally order-driven and delivery performance is reported every month. The standard On-Time-Delivery (OTD) measurement is made with reference to the original Schedule Date (OSD) and also to the Customer Requested Date (CRD). In case OSD cannot be met, a notification, called Early Warning, is given to the customer through the Current Scheduled Date (CSD), updated in SAP system. The management of this process is under the responsibility of the business planning. The figure below shows all the interactions between Sales, BU, supply, quality, Finance and the business planning team.

Business Planning

Quality(FNC, RMA)

Finance(credit hold, credit check)

SALESOrder entry

requirements (postponement, cancellation, quotation…)

CUSTOMER COMMUNICATIONEARLY WARNINGS

SUPPLYTRAFIC : delivery,stocks management

front-end production order

Back-end production order

BUSINESS UNITPE : holds,Technical problemMarketing : price validation, forecast, L/T Application lab : kits, new products

CUSTOMER


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DeliveryBack-end production order

Front-End production order

48 h for scheduling

Billing

Quotation logistic / forecast

Order fulfillment

Forecast Shortage Account holdDerive rend

Order entry Good die Finish Good customer




8.1 Process C6-1 “Order entry processing”

Process description: from a customer purchase order, the tasks are: - For sales to log it in SAP (module Sales & distribution called

ARISE) - For marketing to analyse it and to rapidly answer in terms of

product, quantity, price and for the business planning to commit a reliable delivery date (Original Scheduled Date)

- Then, to acknowledge the demand and communicate the above parameters.

This is a daily process based on firm orders to satisfy the Customer Requested Date (CRD) for a defined quantity.

Price validation

See process C2

analysis

CUSTOMER

CUSTOMERCUSTOMER

Order entry analysis versus Total Demand

See process M1-1

ORDER SCHEDULING

within 48 hours

OSD commitment to

customer

Purchase Order receipt Order entry log in SAP systemPO acknowledgement

See Sales Process

Production startmanagement

See Process C6-2

Unforecasted orderForecasted order

ORDER SCHEDULING

within 1 week

Check : Industrialization step, Material & resources availability and Production capacity


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Customerneed

Customerneed Feasibility

studyFeasibility

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Selection

ATMEL Fab

SelectionProcessQualification

ProcessQualification

Major changes management

Evaluations/ Qualification tests

Major changes management

Evaluations/ Qualification tests


Product Manufacturing (wafer fab)Product Manufacturing (wafer fab) CustomerCustomer

Leading indicators follow up

Non-conforming product management

Reliability monitoring (PA Group)

System and Process audits

Weekly / Monthly Reporting

Continuous improvement: WW project “global fab”

Quality data retention, Cpks, T-cards

Requirements definition (specifications)

Leading indicators follow up

Non-conforming product management


System and Process audits

Weekly / Monthly Reporting

Continuous improvement: WW project “global fab”


Requirements definition (specifications)

NEW PRODUCTINTRODUCTION

Process, MaterialsImprovements


MARKET

PEPE PEPE

QualityQuality PEPE

Manufacturing supportManufacturing support

See Process C1 New standard Product DevelopmentSee Process C1 New standard Product Development

8.2 Process C6-2 “ Workshop management ATMEL and subcontractors” Process description: this process describes how ATMEL Nantes manages the subcontracted operations from planned order to product availability in warehouse. The main goal of this process is to ensure that manufacturing and testing of silicon wafers and packages subcontracted are compliant with customer’s needs and currently applicable standards.

Manufacturing and servicing processes are identified and organized around the activity of 2 main areas: Front-end and Back-end, as illustrated below:

a) Management of specifications for subcontractors and ATMEL fabs ATMEL Nantes Requirements applicable for subcontractors and ATMEL fabs are defined in different specifications. Requirements for approval of product, procedures, processes, equipments and quality management system are defined in the LOST 3008 (generals requirements) and in POR0xxxx (specific requirements) and LOSTxxxx (working instructions) b) Management of front-end areas (ATMEL Fabs) Each Business Unit is free to make use of any ATMEL manufacturing facility, depending on the overall company strategy, its technology needs and available capacities. One rule of the quality management is to increase the effectiveness of the decision process through the use of data and their analysis. These measurements cover products, the key processes, the quality system, and customer satisfaction.

Organization of the specifications for subcontractors and ATMEL Fabs

Lost 3008Generality (system and

Generals goals)

PORO’s: Specificities• specific rules• specific goals

Lost 40XX and 700X’s’Working instruction

CPQ ‘s(Corporate

specifications)

Specific requirement per area


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C6-2

Wafer Fab Probe Assembly Final test Packing and

Shipping

FRONT-ENDATMEL FABS or External

FABS

BACK-ENDATMEL and offshore

Facilities

NantesACP

Wafer Fab Probe Assembly Final test Packing and

Shipping

Wafer FabWafer Fab ProbeProbe AssemblyAssembly Final testFinal test Packing and

Shipping

Packing and

Shipping

FRONT-ENDATMEL FABS or External

FABS

BACK-ENDATMEL and offshore

Facilities

NantesACP




c) Management of back-end areas (subcontractors) Our subcontractors are best-selected partners based on performance, cost, availability, and service. Preference is given to ISO9001/TS16949 certified suppliers. Their ability to meet requirements is assured during quality audits. Like for the other ATMEL sites, ATMEL Nantes has in place a system to select, qualify and manage the subcontractors.

(1) Process specification definition: Process flow chart, Inspection and test criteria and Packing specification (2) Major change management: Material & Process major change management, Reporting to the TRB (3) Leading indicators monitoring: Cpk, Open /Short (O/S) and process yield, Visual/Mechanical and Elect AOQ and Non-conformities Non conforming product management: Quality alerts, discrepant material, Corrective and preventive actions follow up Continuous improvement: global ATMEL WW subcontracting workshops (“One voice to the subcontractors”, Engineering WW team), Annual goals and objectives, Promote the use of advanced materials, Use of SPC (P-chart) on O/S. Subcontractors are evaluated and a format performance scorecard is transmitted to them to ensure that continuous improvement programs are in place in the corresponding areas. Global annual summary is done at corporate level : the goal is to provide SUBCON with a concise overall report summarizing performance at all ATMEL locations.

Customerneed

Customerneed Feasability

studyFeasability

study SubconSelection

SubconSelection Process

QualificationProcessQualification

Selection among the ATMEL Subcontractors list

Background with ATMEL (scorecards)

Certifications

Process evaluation

Audit

Selection among the ATMEL Subcontractors list

Background with ATMEL (scorecards)

Certifications

Process evaluation

Audit

(1) Process & requirements

definition

Qual tests

(1) Process & requirements

definition

Qual tests

(2) Major changes management

Evals/Qual tests

(2) Major changes management

Evals/Qual tests


Product Manufacturing (assembly and test)Product Manufacturing (assembly and test) CustomerCustomer

Leading indicators follow up (3)

Non-conforming product managementQ.Alerts, DMR (3)


Regular System and Process audits

Supplier performance : Weekly / Monthly Reporting , Quaterly Business Review , audit, scorecards

Market share decisionsContinuous improvement (3)


Leading indicators follow up (3)

Non-conforming product managementQ.Alerts, DMR (3)


Regular System and Process audits

Supplier performance : Weekly / Monthly Reporting , Quaterly Business Review , audit, scorecards

Market share decisionsContinuous improvement (3)


NEW PRODUCTINTRODUCTION



MARKET

Manufacturing supportManufacturing support Manufacturing supportManufacturing support




8.3 Process C6-3 “Delivery” Process description: this process describes how ATMEL Nantes delivers the finished goods to the customers. The main objective of this process is to deliver the purchased product at the committed date and without damage or shipping errors.

There is different steps or activities: - Delivery Preparation: Picking and packing (pack and labels, check and validate compliancy

of material to customer’s order) - Shipment preparation: issue shipping documents, export declarations, get customs

shipment authorisation - Delivery tracking and tracing: monitor and control the delivery, update shipping

information, alert and react in case of deviation - Shipment capacity and capability management: analyse special customer’s delivery

requests, determine tax and customs requirements, select carriers, obtain export authorisations (licenses…)…

The schema below shows the different ATMEL’s finished goods shipping points.

Shipping Control The products are stored in the finished goods' store. The aim of the shipping control is to assure the conformity of the characteristics as required by the order and as defined in the customer purchasing specifications. Certificates of Conformity are prepared according to customer request, and are mandatory for compliance to MIL PRF 38535 and ESA SCC standards for Aerospace products. Electrical test results (group A) and visual mechanical test results (group B) are attached when required.

The following diagram shows the Nantes physical flow

CURRENT FINISH GOODS SHIPPING POINTS

Atmel factories Finish Goods Shipping Points

Nantes Heilbronn

RoussetSan Jose

Colorado SpringsGrenoble

East Kilbride

Sub-contractors factories Finish Goods Shipping Points

ACP

ATMEL NANTES PHYSICAL FLOWS

Diffusion

Assembly

Test

Distribution Center

Customer

NTOFR

RFOFR

NTSUK

CSOUSA

SACICN

SAZ1TH

SAT3TW

SAT5TW

GFOFR

SAT7TW

NTOFR

STP9PH

STK1KR

STT7TW

ACPNTO

EUROPE ASIAUSA

SAK 1,4,8KR

STT3TW

STZ1TH

STP6PH

SAP 2,5PH

SAM2MY


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9. PROCESS C7 “CUSTOMER COMPLAINT ANSWER” Process description: this process describes the management of a customer complaint: track the complaint, organise and realize retests and analysis in order to obtain and forward a reliable and quick answer to the problem description. Two types of customer’s complaints are followed: - Quality issues - Product use issues

The following diagram shows the organization of ATMEL Nantes for the management of customer complaints.

9.1 Goals and performance measurement As per corporate directives, the 2006 objectives are the following: - Intermediate report : 90%>2 days upon receipt - Final report : 75%< 10 days upon receipt The actual figures are computed on a monthly basis and included in the monthly quality report of the Microcontroller Business Unit. This report is widely communicated and reviewed by the ATMEL Nantes management team.


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Customer complaint AnswerC

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Failure Analysis

8D report

FacrDatabase

Log

2nd LevelHotline team in

Technical Marketing Group

If problem is not resolved at 1st level

1st Level Dispatched to product marketing

owner

Hotline Database

Log

Quality

Products

ApplicationHotline

HOTLINEHOTLINE

Customer

Quality issue

Product use issue

SALESSALES

QUALITYQUALITY

FAEFAE

ComplaintResolved

When problem is closed answers are given to

Sales/FAE + customers

Customer

☺Customer

☺?




9.2 Data record and tracking Both quality and product use complaints are logged in databases currently under unification (e-journal). These bases allow an easy tracking of analysis in progress and to warn the necessary actors participating to the investigation whenever needed. 9.3 Format All report strictly comply with the corporate “8D format” standard 9.4 Physical analysis The availability of on site facilities including the necessary set of equipments and expertise allows to expedite most of current physical analysis. When highly sophisticated techniques are needed, some analysis may be partly subcontracted to other ATMEL or external laboratories. 9.5 Annual report On an annual basis, all customer issues are summarized in a report detailing actual figures, main products affected and root causes. This report, widely communicated at the management level, is one the key inputs used for determination of further goals and new improvement initiatives.




10. PROCESS S3 IT Processes description: S3-1”To Develop and maintain applications”: The mains goals are

to provide software application environment and make it faster, better, cheaper and more intelligent and to keep the software applications operating at current functionalities and nominal uptime quality level. There are different activities:

- Collect users requirements - Evaluate, develop & test the new applications - Maintain & improve the existing applications. - Implementation of Corporate Software

S3-2 “Install, operate & maintain the technical infrastructures”: The mains goals are to guarantee the availability of systems and to keep the maintenance task at lower cost. There is different steps or activities:

- Installation and test of the new systems - Systems improvements - Operate & maintain the systems

S3-3 “Provide IT user support”: The main goal is to keep an efficient helpdesk organization with short response time to end users and a completed good Service Level for all employees. There is different steps or activities:

- IT users requirements management - IT users problems management - IT quality management.

Every year the IT department does a users satisfaction survey. This survey is greatly helping the IT department in his continuous improvement process to monitor the IT service level, harmonize support and to obtain feedback from all users in all locations.

2005 Survey results

2005 1773 responses (1761 in 2004)


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11. PROCESS S5 “PURCHASING”

Process description: Purchasing process from any need to product availability, including selection, qualification and performance evaluation. Suppliers are partners so ATMEL select the best overall suppliers based on performance, cost, availability, service and preference is given to ISO9001/TS16949 certified suppliers. Their ability to meet requirements could be checked during quality audit.

The operating flow of the purchasing process is described in the figure below


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Suppliers Management

Anticipate

Critical Supplies sourcing

Integrate the quality in the contract Qualify the Supplier

Control

Contracts and purchase Order

Purchased Product Verification Supplier Monitoring

Improvement

Correctives Actions Improvement PlanEvaluation of the relation with the Supplier




12. INFRASTRUCTURE 12.1 Contingency plan In the event of an emergency, specific procedures shall be followed to minimize injuries to employees and damage to the site by providing a quick and efficient response to all emergencies. The recovery plan:

Indicates the activities that follow emergency response and deals with getting the people, building and operation back to normal operations status in order not to impact final customers.

Describes industrial environment already in place to minimize risks PGMH0305 provides all further details about ATMEL Nantes contingency plan. 12.2 Personnel safety to achieve product quality Since the issuance of the French Ministry's Application Decree on November 5th 2001 which was derived from the European "directive" n°89/391/CEE dated June 12th 1989, ATMEL Nantes make a periodic evaluation covering all its work area. The purpose of this evaluation is to evaluate the risks regarding the safety of employees. Related available safety means have been listed in the “Document Unique”. Actions have been identified where a risk has to be reduced. Under the responsibility of the Safety Engineer, periodic audits with "CHSCT" members are conducted in order to approve the "Document Unique" and its related action plan. 12.3 Preservation of product Handling, storage and packaging instructions are defined throughout the fabrication process to guarantee microcircuit integrity from wafer level to customer receipt. Preservation of the product is guaranteed through: - Antistatic boxes - Work areas and equipment protected from possible electrostatic discharge - Antistatic bracelet and shoes - Awareness of all production personnel of handling conditions for MOS integrated circuits

Storage conditions include monitoring of temperature, ESD, humidity. Specifics packaging are developed in order to protect the product from mechanical and electrical degradation during handling and transportation. Periodic inventory and automatic order generation aim to reduce level of inventory and promote stock rotation. 12.4 Environment Since the sale of the fabrication activities, and in accordance with the ATMEL corporate environmental policy, ATMEL Nantes has decided not to maintain their ISO 14001 certification. However, the management team remains committed to the preservation of environment and will keep on taking care of permanent reduction of ATMEL Nantes environmental impact, as part of its continuous improvement policy. This includes of course the compliance to official regulations as well as a continuous quest for preventing pollution and reducing consumption of energy, water and any other natural resources. One of the major initiatives currently in progress is the introduction of a “green offering” that eliminates lead as well as halogen from the products, as per the “risk of hazardous substance” (RoHS) European directive. This introduction will be completed by July 1, 2006.




VI. QML SPECIFICS ATMEL Nantes SA is granted QML (Qualified Manufacturer List) for military (level Q) and space (level V) ranges since December 1999. Radiation Hardness Assurance (RHA) has been certified effective October 2000. (For further details see § 2.4) The QML program is designed to facilitate the rapid insertion of advanced microcircuits in the Aerospace product offering. QML domain of ATMEL Nantes is as follows:

- Design and technology: CMOS with lithography of 0.6, 0.5, 0,25, and 0,18 micron - Wafer fabrication: MHS and ATMEL Rousset wafer fabrication modules - Assembly: Grenoble assembly line - Final test: MHS Nantes test area - Quality Conformance Inspection: Nantes.

DSCC/ QML: CMOS with lithography of 0.6, 0.5, 0.35 and 0.18µm ESA/ ESCC QML: CMOS with lithography of 0.35 and 0.18 in progress 1. TECHNOLOGY REVIEW BOARD TRB (Technical review Board) meetings are held every month in Nantes. Attendees are from all major departments: design, technology characterization, wafer fabrication, assembly, final test, product engineering, manufacturing subcontracting, quality and aerospace marketing. The TRB is responsible for the qualification status of the technology, process change control, reliability data analysis, failure analysis, and corrective actions for QML products and review and approve majors changes for other products (I.e automotive products). Before a technology validation is scheduled, the TRB determines the test to be accomplished on the Technology Circuit Vehicle, Standard Evaluation Circuit and parametric monitor and submit the test plan to the qualifying agencies (ESCC & DSCC) if necessary.

2. CHANGE CONTROL Screening flows for Aerospace products fulfilled MIL-PRF-38535 level Q and V as well as ESCC 9000 requirements. As per QML concept, alternative methods may be introduced after TRB review and approval when gathered reliability data on the products indicates that such changes are meeting the military and space ranges performance needs. Customers are notified of the changes with PCN according to PAQA0128 procedure. For space range, Space Agencies approvals are required before change implementation.

3. QUALITY MANAGEMENT PLAN See Table below




(1) Test instructions are specified for each test.

ESCC Basic Specification

25400 § 6

ESCC Basic Specification 2549000 §6

MIL-PRF-38535 §G.3.3.1

ATMEL Nantes Internal spec

Index of certified baseline 2 a Doc control master list Technical data in GDT

Conversion of customer requirements 3 + mask

generation

b PGMH0205 PGMH0273 PGMH0230 PGMH0402

Quality improvement program 4 h M1-2 process

Calibration program 5 l PAQA0103 PGMH0260

Training and certification program 6 n M3 process

Cleanliness and atmospheric control program 7 o PAQA0002 PAQA0135

Third party control program 8 r C6-2 process

LOST3008 Failure analysis program 9 e PAQA0163

Statistical process control program 10 i PAQA0225 SPC Software

Corrective action program 11 PGMH0275 C7 process

Change control program 12 d PAQA0128 CPQ2018

Parametric monitors, TCV,SEC 13 Included in b PAQA0096 RDTVXXXX

Evaluation test program 14 PAQA0046

Qualification program 15 q PAQA0046 CPQ2001 Qual pack

Validity of qualification 16 m PAQA0096 PAQA0221 PAQA0223

Esd program © p PAQA0087

PAQA0050

Major tests (b) k (1)

Functional organization chart Not requested c Handled by RH Dpt

Self-audit Not requested f PAQA0178 PAQA0179

TRB reporting 25400 § 4.3 g PGMH0302

List of test methods for laboratory suitability Not requested j PAQA0096

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