IMPACT2016 Quarter 2

Leadership and Context of the Organization

Presented by DQS Inc.

20+ years of ISO 9001 Certification - Congratulations to Zebra Technologies, Smalley Steel Ring Company, Husky Corporation, and ANSYS, Inc.!

A clear vision, commitment to continual improvement, and customer centric organizational fo-cus are all hallmarks of leadership. In the most recent revision to the ISO 9001 standard we were

introduced to new terminology and principles for organizations committed to business excellence. Over the past few decades we have experienced significant changes in environment in which we all operate with acceler-ated product development, supply chain expansion, and convergence of technologies. To keep things interesting the financial markets experienced a sharp decline as well and placed global businesses under pressure to deliver short term results.

A group of DQS customer companies have persevered with leadership in business excellence amidst such signif-icant changes in the external and internal environment, i.e., context of the organization. By maintaining organi-zational focus on continual improvement in their business processes and management systems companies such as Zebra Technologies, Smalley Steel Ring Company, Husky Corporation, and ANSYS, Inc. have demonstrated a clear vision, leadership commitment and exceeded stakeholder expectations. It is our honor to recognize these DQS Inc. (previously UL DQS) customers for sustaining their management systems certification in partnership with DQS and passing the 20 year milestone. Every business metric in these organizations reflect their business excellence, and they are each recognized as leaders in their industry sectors. It is an honor for us to earn and keep their confidence and trust as business partners over two decades. Thank you.

Ganesh RaoPresident and CEO

Extron Logistics, LLC

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Smalley Steel Ring Coompany

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ANSYS, Inc.

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Husky Corporation

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Zebra Technologies

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The People, Perks, and Products behind SmalleyAs the leading manufacturer of high pre-cision retaining rings and wave springs, we’ve encountered countless design ap-plications and worked to find the best solution for you. At Smalley, we put en-gineers, not sales people, on every project for a higher level of technical expertise and an unsurpassed depth of experience and capabilities. Rings and springs may not sound glamorous or interesting, but they’re a critical component in millions of products that you encounter every day and have been our passion for over 50 years.

Even though we stock thousands of parts for immediate shipment, Smalley is fo-cused on delivering the ring or spring that meets your target application perfor-mance. Our unique, No Tooling Cost™, edgewinding manufacturing process al-lows for timely delivery of production quality prototypes on custom designs and a quick turnaround for production vol-umes. A surplus of eBooks, white papers, calculators and more are available to help you make the best choice for your project.

For industry leading insight and assis-tance, get in touch with Smalley’s experts.

Smalley, the engineers’ choice.We have full confidence in our products and so do our customers, that’s why our parts have been included in everything from sneaker design to space exploration equipment on Mars. We are the origina-tor of Crest to Crest® Wave Springs and the exclusive manufacturer of the indus-try-leading Spirolox® Retaining Rings.

Wave SpringsSmalley Wave Springs (Flat Wire Com-pression Springs) offer the unique advan-tage of space savings when used to replace coil springs. By reducing spring operating height, wave springs also produce a de-crease in the spring cavity. With a small-er assembly size and less material used in the manufacturing process, a cost savings is realized. Wave springs operate as load bearing devices. They take up play and compensate for dimensional variations within assemblies. A virtually unlimited range of forces can be produced whereby loads build either gradually or abruptly

to reach a predetermined working height. This establishes a precise spring rate in which load is proportional to deflection.

Spirolox® Retaining RingsSpirolox Retaining Rings, available ex-clusively from Smalley, have No Ears To Interfere® with the mating components in the assembly. Spiral rings offer a 360° re-taining surface, require no special tooling for removal and are interchangeable with ordinary snap ring grooves.

Constant Section RingsConstant Section Rings are often specified for heavy duty or impact loading applica-tions. Smalley offers eight series of rings from stock in over 1,000 sizes.

Laminar Sealing RingsA Smalley Laminar Sealing Ring is a me-tallic labyrinth seal consisting of multiple rings in a groove. This arrangement of the rings and the specific orientation of the rings are dictated by the application and the severity of the environment.

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2016 Quarter 2

On April 18, 2016, DQS Inc. President and CEO Ganesh Rao presented Smalley Steel Ring Com-pany with a plaque to commemorate 20 years of ISO 9001 certification and partnership with DQS Inc. (Formerly UL DQS)

1. Headquartered in Lake Zurich, IL

2. Company was formed in 1963

3. Product line consists of 10,000 standard parts stocked in carbon and stainless steel

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Smalley Steel Ring Company’s 20 Year Celebration

Extron Logistics, LLC was recently the first DQS Inc. customer to achieve an ISO 9001:2015 certificate. DQS Inc. President and CEO Ganesh Rao traveled to their of-fice to present the certificate, and we were able to get the below interview with the company following their upgraded certifi-cation.

1. Can you give a brief summary of what Extron does?

Extron has two divisions:

• Domestic Supply Chain Services to Tech-nology Companies: Extron provides ‘Last Mile Manufacturing’, Order Fulfillment, and Returns Management Solutions to OEMs that want to keep part of their supply chain in the markets in which they operate

o Last mile manufacturing solu-tions allow manufacturers to postpone the installation and integration of critical,

IP-sensitive or volume-sensitive compo-nents until late in the supply chain - thus improving flexibility and adaptability to demand, reducing IP risk to overseas theft, reducing inventory and operations costs, and improving speed to market.

o Returns management solutions allow a company to maximize the value of returned product quickly, by refurbishing it and getting it back into inventory “like new” often within 24 hours.

• The Knurr Products Division: Extron designs, markets and manufactures Knurr products for the North American market. Knurr products include customized enclo-sures, 19” racks, mobile electronics carts, and technical furniture such as control sta-tion consoles and electronics workstations. Components are engineered in Germany to the highest standards and manufactured in the United States by Extron.

2. How long have you been ISO 9001 cer-tified?

[Since] 2007

3. Why is important to the company to be ISO 9001 certified?

• Certification demonstrates Extron’s high levels of quality manage-ment and operational excel-lence to our customers.

• Certification inspires con-fidence in Extron’s ability to consistently meet customer, statutory, and regulatory re-quirements.

• Certification provides a consistent internal quality and management frame-work for our team.

• Certification sends a clear signal that Quality is im-portant to the company, and we are willing to commit re-sources in its pursuit.

4. What are the most notable benefits you have noticed since becoming ISO 9001 cer-tified?

• Improved process documentation

• Improved training

• Customer satisfaction

5. Are there any other standards you are certified to? If so, which standards?

ISO 13485

6. Why did you decide to upgrade to 2015 right away?

We were preparing for ISO 13485 and found that preparation for ISO 9001:2015 was very similar.

7. What do you look for in a certification partner? Why did you select DQS Inc.?

DQS’s reputation, affiliation with UL, [and] experience

8. How has DQS positively surprised you?

DQS has been a partner in this process

9. Describe how you have implemented an attitude of quality into your corporate culture?

• Extron has invested heavily in quality through training, process documentation, metrics and much more.

• This investment is designed to improve but also to clearly signal to our staff that quality matters

• Constant employee training and training measurement

• We review customer feedback and [have] quarterly all company meetings

• We constantly measure and review differ-ent company performance metrics

• We create CARs for all major quality is-sues

10. In the future, what can we look forward to from Extron?

Extron’s goal is to change the way technol-ogy supply chains work in the USA – from manufacturing to returns – our goal is to frame and change the dialog and practice of supply chain design and execution so that OEMs clearly design their supply chains to exert better control, ranging from IP management, flexibility, inventory and cost management and much more.

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Extron Logistics, LLC Receives 1st DQS ISO 9001:2015 Certificate

On March 17, 2016, DQS Inc. presented ANSYS, Inc. with a plaque commemorat-ing 20 years of partnership. Read their ar-ticle below on their journey and improve-ments made with ISO 9001 certification.

If you’ve ever seen a rocket launch, flown on an airplane, driven a car, used a com-puter, touched a mobile device, crossed a bridge, or put on wearable technology, chances are you’ve used a product where ANSYS software played a critical role in its creation. ANSYS is the global leader in en-gineering simulation. We help the world’s most innovative companies deliver rad-ically better products to their customers. By offering the best and broadest portfo-lio of engineering simulation software, we help them solve the most complex design challenges and engineer products limited only by imagination.

Being a global leader in engineering sim-ulation does not come easily. It is earned by understanding our customers and by consistently providing the products and services that meet or exceed their expecta-tions. As our business continues to evolve, we recognize that our customers’ expecta-tions of quality will only become higher, and ISO certification is key to meeting our quality goals.

ANSYS implemented its ISO 9001 quality system in 1994, being certified by Under-

writer Laboratories in 1995. At ANSYS, we view ISO certification as a process to achieve customer satisfaction through continuous improvement. It has helped us to identify and describe our processes more clearly. It has empowered employees by providing them a systematic method for continuous improvement by establish-ing a reliable way to take action toward improving products and services. It has decreased customer complaints and has provided a method for resolution.

In 1996, we added metrics which were beneficial in meeting the ISO 9001:2000 Standard’s requirements for measuring improvement. The purpose of these met-rics was to better manage and control our processes. These metrics have evolved through the years but have always been used to understand and communicate per-formance relative to our quality goals.

As our quality system has matured, ISO certification has served as a way to ensure company focus. We have used registration, surveillance, internal, product, and self-di-rected audits, required by the Standard, to provide us objective feedback. These audit results have kept us focused on our goals.

As our processes have improved, we have achieved our goals with greater regularity and have observed tangible results. As an example, we implemented the Net Pro-

moter Score (NPS) as the measure to as-sess the current health of the relationship with our customers. The NPS is defined as a quality system management tool that can be used to gauge the loyalty of a firm’s cus-tomer relationships. It serves as an alter-native to traditional customer satisfaction research. The NPS is obtained by asking customers a single question; “How likely is it that you would recommend ANSYS to a friend or colleague?” The answer is in the form of a rating from 0 (“Not at all likely”) to 10 (“Extremely likely”). Based on their responses, customers are categorized into one of three groups: Promoters, Passives, and Detractors.

The measure is called the Net Promoter Score because detractors are subtracted from promoters to provide an estimate of how many more promoters than detrac-tors the organization has. Detractors are defined as respondents rating their likeli-hood to recommend as 6 or less; promot-ers are those who rate their likelihood to recommend as 9 or 10; respondents who select 7 or 8 are considered neutral. The NPS measure can run from -100% (0% promoters, 100% detractors) to 100% (100% promoters, 0% detractors). Com-panies commonly use the score to evaluate customer satisfaction or client relation-ships. Since its adoption, we have seen the following improvement year-to-year:

Year-to-Year Percent Improve- ment of NPS

2011 to 2012 25% Increase

2012 to 2013 22% Increase

2013 to 2014 23% Increase

2014 to 2015 56% Increase

ISO certification has helped us take on some of the most demanding challenges of software development and become the leader in the field. It has kept us efficient and productive and differentiates us from our competitors. Today, ANSYS is the global leader in engineering simulation.

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ANSYS, Inc. Uses ISO 9001 to Meet Quality Goals for Customers

“Improvement has become ingrained in our processes at ANSYS, Inc. and is the way we do our business. Our quality metrics continue to be monitored and to improve. These metrics are driven by ISO Certification and the use of our customer feedback process, making use of all the analysis capabilities at our disposal.”

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Husky Corporation Focuses on Continous Improvement

Husky Corporation: A Quality-Driven Legacy

Companies that stand the test of time fre-quently point to quality as a characteris-tic of their success. Husky Corporation, which since 1947 has set the standard for developing general fueling and relat-ed products in the transportation sector, places quality as one of its key pillars.

Husky Corporation manufactures fuel nozzles, Safe-T-Breaks®, swivels and acces-sories from production facilities in Pacif-ic, Missouri. Customers all over the globe expect these products to work flawlessly each time they fuel their vehicles. That is a primary driver behind the company’s pursuit of certified quality management systems more than 20 years ago.

“ISO was getting national and interna-tional attention at the time. Plus, Husky was dealing with several large customers including BP, Shell, Exxon / Mobil, which we believed were going to require quality certification by their vendors,” said Husky Corporation Vice President Brad Baker. “Coincidentally we needed to upgrade our processes. ISO provided a structure to for-malize our processes.”

Continuous Improvement in Action

The quality policies, document control systems and methods to monitor key metrics that resulted from the initiative helped Husky develop processes for con-tinuous improvement, which continue to help drive the company from $7.5 million in sales in the mid-1990s to approximately $35 million in 2015.

“ISO 9001 provides a foundation, baseline and a goal. If utilized correctly, you can have an established core for continuous improvement,” said Husky Quality Assur-ance Manager Steve Baynham. “In itself, ISO won’t allow continuous improvement. But it establishes a core, with key metrics

in place, as a benchmark for improve-ment.”

The fact that auditors review processes fre-quently provides both third party valida-tion and sharing of best practices.

“There are many continuous improvement activities, investments in new equipment, new technologies, and new software to better analyze the data that’s collect-ed,” said Blake Sommer of DQS Inc., the third-party registrar that audits Husky to the international standards. “I’ve seen a lot of that happening, which is exactly what should happen.”

The next steps will encompass Process

Failure Modes and Effects Analysis (PF-MEA) improvements around the entire company – order entry, purchasing, man-ufacturing, shipping and customer con-tact. The upside proactively detects issues before they occur.

“Husky is focusing on the cutting edge. Six Sigma methodology and PFMEA are tool sets we are putting in place to keep the company on the cutting edge,” Baynham said. “We don’t want to inspect parts after the fact, which has zero value. We want to make sure the process is monitored to ensure it is sound and will deliver consis-tently high quality parts at the end. That is where there is value.”

Working the Plan and Planning the Work

Company leaders believe in ‘working the plan and planning the work’ as a strate-gic growth formula. Husky Corporation recently acquired fluid line kit supplier S.U.R.&R., which was made possible in part due to Husky’s focus on maximizing value from is its production processes.

“Another strong thing here is communi-cation between management and the per-sonnel. They hold monthly meetings with all personnel to keep them abreast as to new business,

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1. Headquartered in Pacific, MO

2. Company has been in business for over 65 years

3. They have five key pillars: Safety, Quality, Customer Loyalty, Team Building, and Productivity.

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Zebra Technologies Through the Years

In 1969, the history of Zebra Technologies began as Ed Kaplan and Gary Cless found-ed the company, which was then named Data Specialties. The company made the first barcode printer and changed its focus to specialty on-demand labeling ticketing systems in 1980. Then in 1986, the compa-ny made the world’s first thermal printer for on-demand barcode labeling, and it changed its name to Zebra Technologies.

In 1991, Zebra transitioned manufactur-ing to the United Sates from Asia. In that same year, it opened its European sales office and had its initial public offering. Seven years later, Zebra Technologies and Eltron International, a leading desk print-ers and Photo ID card printers provider, merged. The company acquired Comtec

Information Systems in 2000, which is a leading provider of wireless mobile print-ers.

In the past 20 years, Zebra has evolved from an engineering company that is fo-cused on hardware to an innovator of solutions for more powerful business in-telligence.

The company gained new leadership in 2007 when Anders Gustafsson took over as CEO. The company continued to grow in 2013 when it acquired Hart Systems and introduced its IoT platform, Zatar, and the MotionWorks™ Sports solution. Just last year, Zebra Technologies announced an agreement to purchase the enterprise busi-ness from Motorola Solutions. As you can

see, Zebra keeps growing and improving, and there is no sign of stopping any time soon.

The corporate headquarters for Zebra is in Lincolnshire, IL, but there are offices in over 26 countries worldwide. In 1995, Zebra Technologies partnered with DQS Inc. to certify to ISO 9001, and their first certificate was achieved on November 8, 1995. In addition to continually improving quality, the company is now also certified to ISO 14001 for environmental manage-ment.

DQS Inc. is excited to continue to partner with Zebra for over 20 years now, and we can’t wait to see what the future holds for our partnership.

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performance and efficiency,” Sommer said. “There are daily toolbox meetings to discuss issues. The employees are kept informed, and they like that.”

In recent years Husky has also acquired BJE lube and oil products along with Hewitt avi-ation fueling products. Both utilize the com-pany’s internal systems and production facil-ities. Husky also has strategic partnerships or alliances with Benecor DEF dispensing and storage products, Enevo logistics optimization systems, and RS liquid loading arms.

“A lot of companies just want to get a certifica-tion for its own sake,” Baynham said. “Husky is doing it because we truly see the cost benefit and the value created from having quality pro-cesses in place that are utilized for continuous improvement.”

Careers We’re growing! Have a friend who wants an au-diting career with a leader in the business? Let us know! Go to www.dqsus.com and click on careers in the top right corner to view our open-ings and apply.