LASERAGE TECHNOLOGY CORPORATION

FOCUS ON EXCELLENCE

Laserage Technology

Corporation

“Experts in Precision Laserage Contract Manufacturing”

09/28/2011

www.laserage.com

Laser Contract Manufacturing

•What is Contract Manufacturing?

•Why Utilize a Contract Manufacturer?

What is Contract Manufacturing?

• Making components or assemblies for others – Customer’s Design

– Customer’s Finished Specification

– Customer’s Order Quantity & Timing

• Service Menu – What services do you want to provide?

– What are you willing to do for your customers?

What is Contract Manufacturing?

• Customer’s Design –Their idea, their drawing

–CM Engineering evaluates capability

–CM provide evaluation feedback

What is Contract Manufacturing?

• Customer’s Finished Specification – Regularly, specific component/assembly

characteristics are defined by customer written guidelines or specifications

– Occasionally, customers will allow the CM to define the outcome characteristics based on your process capabilities.

What is Contract Manufacturing?

• Customer’s Order Quantity & Timing – Our View, our time is not your own.

• Time is sold first come first served

• Highest rate take priority

–CM purchases inventory as need based on customer forecast or spot purchase.

–CM builds to order or to agreed inventory (Kanban)

–Delivery quantity is specified by the customer

–Delivery date is agreed to by both parties.

What is Contract Manufacturing?

• Menu of Services – What services do you want to provide?

– What are you willing to do for your customers?

What is Contract Manufacturing?

• What services do you want to provide? – “Precision laser contract manufacturing”

• We use lasers as our tool – CO2, YAG, Fiber, Disc, Ultra-fast Pulsed to

– Drilling holes

– Cut 2D shapes

– Cut tubes

– Weld metal assemblies

Lasers In Use

• CO2 – Lasers – 250-500W Coherent Sealed

– 100-400W Synrad Sealed

– 2500W Rofin-Sinar Slab

– 20W Quantrad Marker

• YAG Lasers – 50W Lumonics Luxstar welders

– 15W Lasag KLS fine cutters

– 350W Lasag FLS fine cutters

– 50W Lee fine cutters

– Lumonics JK701 400W

– Rofin Starweld

• Fiber Lasers – 50, 150, 200 and 400 W SPI and IPG

– 20W IPG Marker

• Disk Laser – 100 Watt Prenovatec

• Femto-second Laser - Raydiance

What is Contract Manufacturing?

• What are you willing to do for your customers? – Hold Inventory

– Build to kanban

– Quality Planning • Validation Efforts

– IQ, OP, PQ, Process characterization studies

• FMEA

• Control Plans

• PPAP submissions

What is Contract Manufacturing?

• What are you willing to do for your customers? – Quality Assurance

• Measurement Development – Gage R&R

• Non-Conventional Inspection – Crack check, x-ray, etc.

• Functional Testing

• Limit Testing

Laserage’s Mature Quality System

• ISO 9002:1994

–March 1996

• ISO 9001:2008

–November 2006

–Cert # L112006

• ISO 13485

–November 2010

What is Contract Manufacturing?

• What are you willing to do for your customers? – Secondary Processing • Metal Finishing

– EP, tumbling, micro-blasting, etc.

• Annealing

• Passivation

• De-greasing

• Paint

Precision Finishing Capabilities

• NiTi Shape Setting

– Expansion & Forming

• Surface Treatments

– Micro-Blast, Etch, Oxides, & Others

• Surface Finishing

– Tumbling, Electro-Polishing of NiTi, SS, &

Others

Why would an OEM utilize a CM?

•Project R&D

• Initial Design Verification (pre-production)

•Pilot Production Line

•Volume Production

Why would an OEM utilize a CM?

–Costs are for the expert manufacturing knowledge as well as capitol. The OEM does not need to spend money or time on capital or learning.

–Flexibility is the beauty of the Contract Manufacturer. If an OEM sends a component to be laser manufactured and the test is not successful, an EDM will be tried next or potentially a water jet system. If a hole diameter does not function as desired, iterate the next round of components. There is a cost in time but not capital.

• Project R&D –Putting a new component into the engineers hand for feasibility and reality checking

–CM are utilized because they have expertise in a narrow field with capital equipment in place

Why would an OEM utilize a CM?

• Initial Design Verification –Once prototyped does not mean always production ready

–Equipment (laser type) evaluation

–Process optimization trials

–DOE for processes and equipment

–Validation efforts

• Equipment Inputs

• Variable range testing

• Multiply lot Process Execution

• Design for Manufacturability –Understanding all the Processes

–Effective Process Controls

Why would an OEM utilize a CM?

• Pilot Production Line – Speed

• The CM already runs a manufacturing facility with the capability to produce product.

• No capitol lead-time required

• Training operations personnel is minimal since most likely similar products are already produced

–Cost

•Manufacturing is in CM’s floor space, usually lower cost then OEM.

•Technical staff on hand w/ little or no training needed

Why would an OEM utilize a CM?

• Volume Production – Demand Variations

• Keep an approved CM even if bringing production in-house. Utilize them for peak demand offset and equipment down-time.

– Core Competency • These operations (laser) are what we do well.

Laser uptime is critical to us.

– Cost • We understand (laser) production processes.

Laserage’s Capacity &Capability

•Ceramic Substrate Processing

•Precision Tube Processing

•Precision Cutting Metals & Plastics

•Precision Welding of Metals

Capacity’s

• 41 laser systems

• Utilizing 66 lasers

• Run By 135 employees

• 3 shifts per day

• 5 days per week

Ceramic Applications

Automotive Electronics

General Electronics

Micro Electronics

Hearing Aids Circuitry

Medical Sensors

Aerospace circuits

Cellular Telephone

Microwave devices

Precision Tube Applications

• Medical Devices

• Medical Implants

• Stents

• Surgical tools

Precision Cutting Applications

• Industrial Apps

• Aerospace Apps

• Commercial Apps

• Recreation Components

• Mechanical Apps

• Filtration Apps

Precision Welding Applications

Automotive Laminates

Medical Devices

Industrial

Commercial

Aerospace

Telecommunications

LASERAGE TECHNOLOGY CORPORATION

FOCUS ON EXCELLENCE

Questions?