Renaissance Repair & Supply Overview..take 2

1. Renaissance Repair & Supply Inc.
Remanufacturing, Repair, & Support

2. BackgroundBackground
HistoryHistory
5 years of Operation under dTel branded name.5 years of Operation under dTel branded name.
First 3 years focusing on New / Used material at a component levelFirst 3 years focusing on New / Used material at a component level
2 Years of focus on Secondary/Remanufactured and Services2 Years of focus on Secondary/Remanufactured and Services
Central hubs and warehousesCentral hubs and warehouses
Multiple warehouse locations for grooming returns and staging shipmentsMultiple warehouse locations for grooming returns and staging shipments
1 Re-man/Repair center in Canada servicing Canada/ EMEA/ USA/ CALA1 Re-man/Repair center in Canada servicing Canada/ EMEA/ USA/ CALA
1 Outsourced hub for test and repair (Texas) for non core material1 Outsourced hub for test and repair (Texas) for non core material
1 UK partner for Warehousing /Logistics and Installation1 UK partner for Warehousing /Logistics and Installation
Target Market / Sizing / Global CoverageTarget Market / Sizing / Global Coverage
Switching, Optical, Wireless, Access, Supply Chain and ServicesSwitching, Optical, Wireless, Access, Supply Chain and Services
Total $4B potential in market annually (All Vendors, includes Services..not repair)Total $4B potential in market annually (All Vendors, includes Services..not repair)
NA(45%) CALA(15%) EMEA (35%) Asia Pacific (5%)NA(45%) CALA(15%) EMEA (35%) Asia Pacific (5%)

3. Business DriversBusiness Drivers
Most networks installed during technology boom (1990’s) based onMost networks installed during technology boom (1990’s) based on
increase “new revenue” driven by internet.increase “new revenue” driven by internet.
Networks have become aged.Networks have become aged.
~80% of installed base of equipment driving your and my phone and~80% of installed base of equipment driving your and my phone and
internet services runs on equipment that the OEM has discontinuedinternet services runs on equipment that the OEM has discontinued
Current market is not one of growth justifying the replacement ofCurrent market is not one of growth justifying the replacement of
Optical and Switching Systems. This is not an emerging marketOptical and Switching Systems. This is not an emerging market
with new services being offered.with new services being offered.
Given that budgets are tight Customers are seeking an alternativeGiven that budgets are tight Customers are seeking an alternative
supply source for additional spares and infill for legacy network.supply source for additional spares and infill for legacy network.
Material exists in the market in excess pockets to fill demand.Material exists in the market in excess pockets to fill demand.
Equipment was originally built to 5 nines reliability…..it does notEquipment was originally built to 5 nines reliability…..it does not
break or fail. Stated failure rates on legacy equipment is ~1 to 3%break or fail. Stated failure rates on legacy equipment is ~1 to 3%
dTel is enabling Customers to manage legacy networks by offeringdTel is enabling Customers to manage legacy networks by offering
an “Alternative Supply Chain” and repair/replacement services.an “Alternative Supply Chain” and repair/replacement services.

4. 0
5
10
15
20
25
30
35
40
45
Market Deployment Mfg Cost RMfg Cost
Remanufacture Vs. New ArchitectureRemanufacture Vs. New Architecture
(A time for all offerings)(A time for all offerings)
New ArchitectureNew Architecture

Higher CapacityHigher Capacity

Market Driven FeaturesMarket Driven Features

Bleeding edgeBleeding edge

Some Current TechnologySome Current Technology
Remanufactured ArchitectureRemanufactured Architecture

Low/ Moderate VolumeLow/ Moderate Volume

Discontinued PlatformsDiscontinued Platforms

Stable platformsStable platforms

IB saturated from previousIB saturated from previous
Product PurchasesProduct Purchases

Cap on spending so as not toCap on spending so as not to
drive over supplydrive over supply

Start rotating and migratingStart rotating and migrating
your stockyour stock
Market Deployment
Saturation
Bridge into alternative
supply chain at lower cost
Turn
focus to
next Gen
Why pay a premium for products that will soon Migrate!

5. PagePage 55
What is Reman in Relation to A class and RepairWhat is Reman in Relation to A class and Repair
A Class Reman Repair
A Class MFG CM
•High Speed MFG
•Next/ Current Gen
•Incremental Foot Print
•High Cost
•Low FG Inventory (JIT)
•Component re-
engineering
•Demand Driven
•Low OM Flexibility
•Heavy Infrastructure
Geared to Repetitive
Business
Repair CM
•Surgical/ low speed
•90% Break/Fix
•Current Generation
•No new Foot Print
•High Cost
•Moderate FG Inventory
•Long Lead Time
•Risk avoided with Cost
•No OM Flexibility
•Heavy Infrastructure
Service Based Business
Remanufacturing
•85%Test/ Certify
•Sourcing Specialists
•Current/Md’d Gen
•Incremental Foot Print
•Low Cost
•High FG Inventory
•Quick Turnaround
•Order Re-engineering
•High OM Flexibility
•Low Infrastructure
Alternative Supply Chain
Reman is a hybrid between A Class and Repair….
A Different Supply Chain and a Different Skill Set

6. Some Installed Base Data,Some Installed Base Data,why can I not get efficient repair from the OEM on older platforms?why can I not get efficient repair from the OEM on older platforms?
Installed Base RationalizationInstalled Base Rationalization

~80% of the Installed Base consists of MD or EOL~80% of the Installed Base consists of MD or EOL
MaterialMaterial

Customers keeping equipment in service forCustomers keeping equipment in service for
significantly longer than planned for or anticipatedsignificantly longer than planned for or anticipated

Typical stocking for Repair post Md is 5 yearsTypical stocking for Repair post Md is 5 years

EOL material not stockedEOL material not stocked

Support plans now including EOL materialSupport plans now including EOL material

Material does not exist in the repair pipeline toMaterial does not exist in the repair pipeline to
facilitate repair volume expectationsfacilitate repair volume expectations

Components required to repair are now obsoleteComponents required to repair are now obsolete
(ASIC, and Passives)(ASIC, and Passives)
End Results Of not usingEnd Results Of not using AlternativeAlternative StockingStocking
SolutionSolution

As Customer aged installed base is higher thanAs Customer aged installed base is higher than
planned Lead times increase as does back logplanned Lead times increase as does back log

Cost associated to repair increase on Md and EOLCost associated to repair increase on Md and EOL
FRU’s as components to repair no longer existFRU’s as components to repair no longer exist

Traction from Customer Base is dwindling asTraction from Customer Base is dwindling as
confidence in ability is lost although Repair is soldconfidence in ability is lost although Repair is sold
from OEM at a Premium.from OEM at a Premium.

As majority of Alternative Supply is on Md or EOLAs majority of Alternative Supply is on Md or EOL
(90%) direct impact is not to warranty provision but(90%) direct impact is not to warranty provision but
to Bottom Line Support Plan Cost and Revenueto Bottom Line Support Plan Cost and Revenue

7. Capabilities & ServicesCapabilities & Services
Repair & RemanufactureRepair & Remanufacture
Capable of handling many Multi Vendor platforms through our repair and re-manufacturing
process.
All Products that have been repaired or re-manufactured by d-Tel come with a 1 year
warranty.
Alternative Supply ChainAlternative Supply Chain
Multi vendor supply for Manufactured Discontinued platform spares
Remanufactured material tested to Spec
Pack or System level deployment
Services with 1 yr warranty
Asset/Logistics ManagementAsset/Logistics Management
Inventory material (Part, lot, serial number)
Manage return Logistics
Distribution of repair to current vendor set
Use excess to drive lead time reduction in repair
Use excess material to cost reduce repair process
Inventory Redeployment/Resale ServicesInventory Redeployment/Resale Services
Inventory
Store / resell assets displaced by Next Gen deployment
Reconfigure and Remanufactured to d-Tel Spec
Redeploy strategically in whole or in part elsewhere in the network with 1 yr warranty

8. PagePage 88
What is Remanufacturing?What is Remanufacturing?
Cracking the Reman Code…….Cracking the Reman Code…….
Inventory + Reman Process + = Alternative Supply Chain

9. MV Supply Chain SolutionMV Supply Chain Solution
Buyback
•Lucent
•Nortel
•Cisco
•Alcatel
•Other
Recycle
•Telecom
•Non Telecom
•Hazardous
Customer owned
•Telecom
•Non Telecom
Consignment
•Telecom
•Non Telecom
Recycle Execution
•Sort
•Wipe
•Dismantle
•Shred/Smelt
•Dispose
•Destruction Certificate
•97% efficiency
•3% to Land Fill
Warehousing & Reverse Logistics
Cost Reduction
Remanufacture
Process
•Repair
•Test
•Reconfig
•Support Plan
•FG Consumable
MV Repair CR Lab MV Supply MV Sparing
Customer
Supply Chain Svs.
37 Global distribution sites CA, US, EMEA

10. •All material tracked in the warehouse by Lot, PartAll material tracked in the warehouse by Lot, Part
and Serial Number.and Serial Number.
•All material is visually inspectedAll material is visually inspected
•Check for external damageCheck for external damage
•Check interconnect for disruption, damage orCheck interconnect for disruption, damage or
corrosioncorrosion
•Check all latches and catchesCheck all latches and catches
•Check all gasketsCheck all gaskets
•All material integrated to Customer SpecAll material integrated to Customer Spec
•All material is functionally testedAll material is functionally tested
•Functional test at a card level and/ orFunctional test at a card level and/ or
•Functional integrated testFunctional integrated test
•Material is repackaged in standard proper ESDMaterial is repackaged in standard proper ESD
packaging.packaging.
•All Material is sold with a 1 year Warranty.All Material is sold with a 1 year Warranty.
•Md’d and EOL Material available.Md’d and EOL Material available.
Remanufacturing SpecRemanufacturing Spec

11. Repair High Level ProcessRepair High Level Process
Physical Inspection and Cleaning:Physical Inspection and Cleaning:

All Cards, Frames and Bays are physically inspected for, corrosion, damage, missing components, padAll Cards, Frames and Bays are physically inspected for, corrosion, damage, missing components, pad
damage, delaminating, gasket seals, latches and catches.damage, delaminating, gasket seals, latches and catches.

All interconnects are cleaned and/or scoped (fibre, connectors, pins)All interconnects are cleaned and/or scoped (fibre, connectors, pins)

All wiring and harnesses are inspected for jacket stretching, corrosion and continuity.All wiring and harnesses are inspected for jacket stretching, corrosion and continuity.
System/Card Level Test:System/Card Level Test:

All Cards, Frames and Bays are tested for continuity, Bit Error, Loop Back, Power in/out, Fibre Cut andAll Cards, Frames and Bays are tested for continuity, Bit Error, Loop Back, Power in/out, Fibre Cut and
Forced Switch. Dithering cards are soaked for 8 hours to recreate errors.Forced Switch. Dithering cards are soaked for 8 hours to recreate errors.

Tests are performed to A class installation procedure on SLAT.Tests are performed to A class installation procedure on SLAT.
Card Level debug:Card Level debug:

Cards failing system test are physically debugged for loss of circuit continuity or power/ signal degradationCards failing system test are physically debugged for loss of circuit continuity or power/ signal degradation
or loss.or loss.

Component level failures are demarked for physical replacement or repair.Component level failures are demarked for physical replacement or repair.
Physical Repair:Physical Repair:

Component replacement to IPC 610 class II.Component replacement to IPC 610 class II.

ROHS or Non ROHS (Leaded)ROHS or Non ROHS (Leaded)

BGA bumping and replacement (outsourced)BGA bumping and replacement (outsourced)
Packaging/ Warehousing/ Distribution:Packaging/ Warehousing/ Distribution:

All material is packaged to OEM standards (ESD, Anti-Static)All material is packaged to OEM standards (ESD, Anti-Static)

Material Stocked by Part, Serial and BarcodeMaterial Stocked by Part, Serial and Barcode

Finished goods segregated from Feed Stock and RMA StockFinished goods segregated from Feed Stock and RMA Stock

37 Global Storage Locations (Partnered with UPS)37 Global Storage Locations (Partnered with UPS)

12. The right fitThe right fit (Legacy Planning)(Legacy Planning)
Network Lifecycle ManagementNetwork Lifecycle Management

Planning at a network as well as card levelPlanning at a network as well as card level

Evaluation & prioritization of Network ConvergenceEvaluation & prioritization of Network Convergence

Advisory input (supply, support, remove)Advisory input (supply, support, remove)

Legacy reconfig/ redistribution (moves & changes)Legacy reconfig/ redistribution (moves & changes)
Stability of SupplyStability of Supply
 Priority Stocking (limited availability material)Priority Stocking (limited availability material)
Consistent PricingConsistent Pricing
 Predictive SourcingPredictive Sourcing
 Buying in the troughBuying in the trough
Process QualityProcess Quality
 OEM Standards (IPC610, IPC rework)OEM Standards (IPC610, IPC rework)
 ““The alternative supply chain”The alternative supply chain”
 Legacy Repair Supply ChainLegacy Repair Supply Chain

13. Current Repair CapabilityCurrent Repair Capability
NortelNortel
•OpticalOptical
•
OC3/ 12/ TBMOC3/ 12/ TBM
•
OC48 classicOC48 classic
•
OC192 ClassicOC192 Classic
•
MORMOR
•
MOR+MOR+
•
LH1600LH1600
•
LH1600GLH1600G
•
DXDX
•
OM3K SeriesOM3K Series
•
OM5K SeriesOM5K Series
•
OM4K SeriesOM4K Series
•
OME6500OME6500
•
TN1X, 4X, 16X, 64XTN1X, 4X, 16X, 64X
•PassportPassport
•
6K Series6K Series
•
7K Series7K Series
•
8K Series8K Series
•
15K15K
•DMSDMS
•
100, 250, 500, XA Core100, 250, 500, XA Core
•
SuccessionSuccession
•
CS1K, 2KCS1K, 2K
ALUALU
•3610036100
•
74707470
•
76707670
•
36003600
•
16801680
•Wave starWave star
•
OLS400OLS400
•
OLS800OLS800
•
2.5G2.5G
•DSLMDSLM
FUJIFUJI
•FLMFLM
•FlashwaveFlashwave
SycamoreSycamore
•SN3000SN3000
•SN16000SN16000
•DNXDNX
CienaCiena
•Core DirectorCore Director
•Metro Director K2Metro Director K2
PDSIPDSI
SUNSUN
BAY AVAYABAY AVAYA
CiscoCisco
•1000 Series1000 Series
•2000 Series2000 Series
•3000 Series3000 Series
•AS5300AS5300
•55055505
•55095509
•60006000
•65006500
•6500-E6500-E
•6504-E6504-E
•75007500
•1010 Lightspan1010 Lightspan
•1200012000
•GSR all generationsGSR all generations
•15454 all generations15454 all generations
CentigramCentigram
SS8, SC3100SS8, SC3100
Fore Systems, MarconiFore Systems, Marconi
Redback 800, 1900Redback 800, 1900