How is INNO manaing risks?

• Traceability:

• Our quality system outlines that we can only order from approved suppliers. To become a Precision approved, all suppliers must:

• Provide a quality certification (ISO:9001 is a must),

• Sign a supply agreement that acknowledges a certain level of inspection, quality, documentation, and transparency. This agreement outlines how components are purchased, tested, stored and the paperwork required.

• The suppliers we use have been part of our supply chain for over 10 years and we usually do not add new suppliers to our approved list unless necessary.

• Supplier Management:

• We use a Tier system to manage and grade our supplier’s performance. All suppliers start off at Tier 3 status and progress to Tier 1 if they continue to meet our quality requirements. If a supplier provides questionable or counterfeit components, they will drop to a Tier 3 status. They will then be required to provide corrective and preventative actions to improve their supply or risk being removed from the approved supplier list.

• Increased quality control:

• While we can’t control everything that is supplied to us, we can control how it is inspected and tested once it arrives to our facility. Some of the ways we do this are:

• Our Inwards Goods Control team inspects all parts and documentation when it arrives to our facility . We receive thousands of parts daily and while we can’t check every single component, we thoroughly check documentation and batch check parts to see if they have the correct labels and codes.

• Once a component is approved, it will only then be placed into an approved kit for the job at hand. If a part does not have the correct documentation, label or is in fact the wrong part, it is placed in quarantine and our purchasing team raises a non-conformance investigation with the supplier. The parts do not leave quarantine until the issue is resolved. This can either mean the required documentation is sent through or we receive replacement parts that meets our standards.

• We have our own Xray machine that we can use to check the inside of components and to check if a component is counterfeit. It also helps us identify what a real component should look like compared to what we have received.

• Automated Optical Inspection is used to look at and inspect our PCBAs as we assemble them. The AOI will check the top of the parts and establish if the code/label are correct on the component. This check allows us to make sure we are using the correct parts.

• We also maintain our Internal Quality Issues Register, where operators across all production departments enter and submit issues they encounter during assembly. Our Quality & Operations Manager then investigates these issues and implements any process changes, if required or provides training to ensure we continue maintaining our high-quality standards.