CONFIDENTIAL

Jan 2018

Revision 1.4

Product Change Notification (PCN) Training For Manufactures /Suppliers

Disclaimer

1

The information contained in this presentation/document is intended for use and

viewing by Flex employees or authorized customers or suppliers covered by an

appropriate non-disclosure agreement only and may contain confidential, trade

secret, insider and/or legally privileged information belonging to Flex or its clients

Unauthorized disclosure of this content in any form is strictly prohibited and may

result in disciplinary and/or legal action

Revision History

REVISION HISTORY

Document Title:

Product Change Notification (PCN) Training For Manufactures/Suppliers

Document #:GPO-GPO-4-276-00 Revision: 1.4

Document Owner: Jose De Jesus Rodriguez

Revision Description of Change Writer/Reviser Effective Date

1.0 Initial Release PrabuKannan 3/19/2012

1.1 Updated with new format Tamilarasi

Mathiazhagan

4/24/2015

1.2 Updated with latest format for brand name change &

Updated the note for Process Flow

Tamilarasi

Mathiazhagan

9/15/2015

1.3 Included summary slide and rephrased Manufacturer

name as Manufacturer/Supplier

Pankaj Pawan 9/19/2016

1.4 Included changes from sub- tiers suppliers that

concerns the product. Update in email address

Lalitha Kumari 1/8/2018

Training Objective

3

Product Change Notification (PCN) Training for Manufactures/Suppliers is intended for all Flex Manufactures/Suppliers

The Training Is Designed To:

•Inform Manufacturers/Suppliers About Flex Product Change Policy And Disclaimer

•Identify Manufacturers/Suppliers Responsibilities Regarding Product Change Notification Management

•Define Reportable And Non Reportable Change Requirements (Interchangeable And Non Interchangeable Changes)

•Document Key Information Required For Generating PCNs

•Coach Manufactures/Suppliers On When And How To Notify Flex Of Changes (Temporary Or Permanent) Being Made To Their

Products And/or Processes

•Provide Reference Information On Change Types And Descriptions

Flex Product Change Policy and Disclaimer

4

Flex Policy

All proposed temporary or permanent changes affecting material form, fit, or function status shall be submitted using the required

Flex PCN process. As Per Flex Supplier Quality General Requirements (GPO-GPO-3-018-00), PCNs and information shall be

submitted as follows:

• All PCNs shall be submitted minimum 90 days prior to implementation

• PCNs for product discontinuance shall be submitted 180 days prior to last order dates and 365 days prior to last shipment

release dates.

Exceptions to this requirement may be based on pre-existing contractual requirements that are deemed to take precedence.

Flex Disclaimer

The receipt of a Manufactures/Suppliers PCN (including EOLs) by Flex, does not signify acceptance of the proposed product or

process change.

Communicating PCNs

5

Where - Flex email

Manufactures/Suppliers must submit PCNs electronically to PCN1@Flex.com

When - PCN Lead Time

PCNs shall be submitted to Flex minimum 90 days prior to implementation unless contractually agreed upon. A PCN involving an

End of Life (EOL) part shall be submitted 180 days prior to last order date and 365 days prior to last shipment release date.

How - PCN Format

PCN attachments shall be in MS Excel, MS Word, or Adobe (PDF) formats that allow content copying or extraction. MPN Lists

(Part Numbers) shall be in MS Excel or Adobe (PDF) format.

Document formats that prevent copying are not permissible. These include Bitmaps, .jpg files, web links, .gif files, HTML

documents, and ASCII text files.

Flex rates Manufactures/Suppliers PCNs on timeliness, accuracy, completeness, and clarity of information. These ratings

are included in the Manufactures/Suppliers overall performance rating.

Defining Change

6

1. Interchangeable Changes

Any change will be considered Interchangeable if ALL of the following criteria are met:

• No change to the component or assembly Form, based on the product specifications. New features will be considered

interchangeable if they do not violate existing requirements

• No change to the component or assembly Fit, based on the appropriate drawings and tolerances

• No change to the component or assembly Function, based on relevant product specifications, including (but not limited to)

performance, safety, reliability, and environmental specifications.

Manufacturers/Suppliers are NOT expected to generate PCNs on Interchangeable Changes unless they are contractually

obligated to do so.

Defining Change

7

2. Non Interchangeable Changes

If any adjustments or modifications of new or existing product are required to meet conditions of Form, Fit, or Function the changes

are considered Non Interchangeable

The following changes will always be considered Non Interchangeable:

• Addition of new requirements to component / assembly form

• New controlled dimensions or tolerance modifications

• Removal of an existing requirement

• Addition of a new requirement

• Change of fabrication site, country of origin, new subcontractor, etc.

• New component or raw material

• Cosmetic changes

• Name changes (change in name of company)

• Nomenclature changes (change in name of part or process)

• Packaging changes

• Logistics changes

• If previous interchangeable changes have created issues

• Changes from Sub-Tiers Suppliers i.e. material/ product/process/ manufacturing location/ testing

• . Manufacturer/Suppliers MUST generate PCNs on Non Interchangeable Changes.

PCN Documents Requirements

The PCN Document:

• Is created by Manufacturer/Supplier as part of the Flex change management process

• Informs Flex of an impending change to a part or product provided by the Manufacturer/Suppliers

• Shall be transmitted via email

• Is sent within required PCN lead time

• Shall be communicated in English

• Shall be accessible in terms of document protection and allow copying

• Must be complete and accurate

The Manufacturer/Supplier :

•Shall submit PCN official notification either on company letter head or signed by the authorized signatory with seal.

• Shall submit at least one PCN document per PCN

• Shall submit attached documents in MS EXCEL, MS WORD, or Adobe (pdf) format

8

Documenting PCNs : Mandatory Information

9

PCNs must be communicated at least 90 days prior to shipment of affected parts (EOL PCNs - 180 days prior to last order dates

and 365 days prior to last shipment release dates)

Manufacturer/Supplier PCNs MUST contain:

PCN Number Number assigned by Manufacturer/Suppliers to the PCN document. This number must be

referenced on all correspondence related to the PCN.

PCN Issue Date Date on which PCN is issued to Flex

Part Number / MPN Number assigned to the component / part. Also called Manufacturer Part Number (MPN)

Change Description Description of the change

Reason for Change Reason the change is being made to the part / product

PCN Effective Date/ Last Time

Buy Date/ Last Ship Date

Date on which change described in PCN comes into effect/ Final Date for purchase of

discontinued product (LTB)/ Final Delivery Date of discontinued product(LTS), (LTB&LTS

Mandatory for Obsolete PCN)

Supplier Contact Manufacturer/Suppliers information

Equivalent alternative product,

if available

Alternative Part replacing discontinued part

EOL PCNs

10

EOL Notification is a Change Notice from Part Manufacturer regarding parts that will no longer be provided. EOL submission is

accomplished using the PCN process which includes EOL Change Type.

EOL PCNs MUST be submitted to Flex 180 days prior to last order dates and 365 days prior to last shipment release dates

EOL PCN MUST include the following, in addition to standard PCN mandatory fields:

EOL Part Number / MPN Unique Part number assigned by Manufacturer

EOL Part Name Name of Part being discontinued

Reason for product discontinuation Mandatory information must be provided

Last Time Buy Date Final Date for purchase of discontinued product

Last Ship Date Final Delivery Date of discontinued product

Equivalent alternative product, if available Alternative Part replacing discontinued part

PCN Process Flow

(Prime)

FLEX Manufacturer/Supplier

Flex

PCN Coordinator

Site 1

Site 3

Site 4

Site 2

Sent Notification

Flex Communicates with Flex Part MFR/Suppliers

only if any clarification required

Queries/Clarification on PCN

Sub –Tiers Suppliers

11

SUMMARY

12

• Manufacturers/Suppliers are responsible for submitting all change notifications to Flex via email using the email address

PCN1@Flex.com

• Manufacturers/Suppliers are responsible for reporting all non-interchangeable changes and interchangeable changes

based on this training and their contractual requirements

• Manufacturers/Suppliers should include all mandatory information in their PCN and EOL documents.

• Manufacturers/Supplier shall report normal changes 90 days prior to implementation and EOL changes 180 days prior to

last order date and 365 days prior to final shipment release date.

• Manufacturers/Supplier should report changes via email and in preferred formats as detailed in the training.

• The Part Manufacturers and Distributors are responsible for reviewing sales record and making sure all part changes are

notified to Flex.

• The prime supplier is responsible for ensuring all sub-suppliers are working throughout the supply chain to assess impact of

change i.e. changes to distributor, manufacturer, manufacturer location, manufacturer process/testing which could potentially

affect the safety or efficiency, or materially affect fit, form or function of the products.

Reference : Change Types and Descriptions

13

Change Type Change Description

Acquisition (Complete) One company acquires another company in its entirety

Acquisition (Partial) One company acquires part of another company or acquires a specific product

line

Design Change / Data Sheet Spec Change Design modification including (but not limited to) Dimensions, performance,

modification to spec, software changes, new or modified CTF parameters;

includes new die revisions, update in datasheet/erratum/document

Fabrication Site Change / Qualification /

Country of Origin /New Subcontractor

All changes to fab site, qualification levels, country of origin, or additions of

subcontractors

New Component or Raw Material Added All changes to components or raw material; this includes adding alternate

sources, changing brands, switching to components

Cosmetic Change All changes that will be visible(New color, texture, etc.); this includes changes to

inspection criteria that may result in different cosmetic quality

Obsolescence Obsolete, End of life, Discontinued products

Name Change All changes to manufacturer or distributor name

Nomenclature Change All changes to MPN nomenclature; including elimination of product options

Reference : Change Types and Descriptions

14

Change Type Change Description

Reversal Supplier reverses an existing PCN

Process Change Process change is being made (Rework, inspection, test, etc); Equipment change

is being made (New process, manual to auto, etc)

Environmental Announcement New compliancy features offered for existing parts (that don’t involve any changes

to the product) or new product environmental announcements

Packaging and Media All Changes to media(New media, tray to tape, change in product identification

information of outer and internal packing material/labeling, changes to

internal/external packaging, etc)

Storage and Handling Environmental requirements change (Temperature, Humidity, MSL, etc.)

Logistics All Changes in logistics /distribution/shipping channel or method (esp. for sensitive

product)

Quality Alert Notifications Notifications regarding quality issues on components.

Multiple Types Change overlaps with multiple change types.

Other PCNs not covered under any of the other existing classes.

Acronyms

15

Acronym Description Acronym Description

PCN Product Change Notification NOM Nomenclature Change

EOL End of Life REV Reversal of a PCN

MPN Manufacturer Part Number PROC Process Change

MSL Moisture Sensitivity Level ENV Environmental Announcement

ACQC Acquisition (complete) PKG Packaging and Media

ACQP Acquisition (partial) STORE Storage and Handling

DESIGN Design / Data Sheet Spec

Changes

LOG Logistics

FAB Fabrication Site change /

qualification

QAN Quality Alert Notifications

MATL New Component or Raw Material

Added

MULTI Multiple Types

COSMETIC Cosmetic Changes OTHR Other

OBS Obsolescence LTB Last Time Buy

NAME Name Change LTS Last Time Ship

For Further Questions Please Contact:

Flex PCN Team

PCN1@Flex.com

16

The information in this presentation is the intellectual property of Flex. Any changes or omissions from its original format outside

Flex are considered void and not representative of this organization. Any forwarding to third parties or publication even of parts

thereof requires express and written approval by Flex. Hardcopy printouts of this file should be treated as reference only. It is the

user ’s responsibility to validate that the hardcopy represents the most current revision by consulting the online reference or the

relevant documentation center.

Thank you!

17

Thank you!