Part three of the compliance webinar series outlines the implementation strategy we use to address your compliance challenges and the benefits you'll gain with having this solution in place. In addition, we will discuss the future of existing regulations as well as possible new regulations on the horizon.

1. Product Governance & Compliance
Webinar 3 - The Ever Changing
Regulatory Environment
Presented by:
Charles Vernor, Solutions Consultant
Dries D’Hooghe, Environmental Compliance Consultant
Guest: Sub-Zero Wolf

2. Who is ZWS?
Zero Wait-State helps companies implement an effective PLM strategy based on
their specific business model
Services Products
implementation integration data migration
DescriptionState DesignState LoadState
RevState DocState

3. Today’s Agenda
1. Future of Current Regulations
2. New Regulations to Monitor
3. ZWS Approach to Compliance Implementations
4. Customer Story – Sub Zero-Wolf
5. Q&A

4. FUTURE OF CURRENT REGULATIONS
Changes to expect from regulations that are already being enforced by your organization

5. Conflict Minerals
• 2015 is the last year that large companies can exercise the use of “DRC
Undeterminable” exemption
– Smaller companies have an additional 2 years (those with less than $75K in
outstanding public shares)
• A new CFSI-CMRT Template (Rev 4.0) is available for 2015 filings
– Changes include updated Standard Smelter List and translation improvements
for questions and answers
– Use of 3.XX template format is encouraged for May 31, 2015 reporting deadline
for 2014 data
• CFSI Certified Smelters list is now available in Excel format
http://www.conflictfreesourcing.org/media/StdSmelterList_RevHistory_Apr2015.xlsx

6. EU REACH 2018
• REACH continues to evaluate new SVHCs every 6 months
• Chemicals that are manufactured or imported between 1-100
tons per year per company are to be registered by May 31,
2018
• Late pre-registration period ends on May 31, 2017
• Late pre-registration is only obligatory if companies want to
benefit from the extended registration deadlines

7. RoHS Exemptions
• Several new exemptions have been introduced:
Substance Application Expiration Date
Mercury in intravascular ultrasound imaging systems June 30, 2019
Lead in polyvinyl chloride (PVB) sensors in in vitro
diagnostic medical devices
December 31, 2018
Cadmium in downshifting cadmium-based semiconductor
nanocrystal quantum dots for use in display lighting
applications
June 30, 2018

8. RoHS Exemptions
• And several exemptions will expire soon unless renewed:
Exemption Expiration Date
Exemption 4d for mercury in high pressure mercury (vapour) lamps April 13, 2015 (Expired)
Exemption 2 (b) 2 for mercury in non-linear halophosphate lamps April 13, 2016
Exemption 33 (Annex IV) for lead in solder on populated printed circuit boards for
class Iia mobile medical devices expires
June 30, 2016
Default expiration date for exemptions in Electrical and Electronic Equipment
(except RoHS Categories 8 and 9), where not otherwise specified Substance
restrictions extended to in vitro medical devices
July 21, 2016

9. RoHS Proposed Substances
• The EU Commission is proposing to restrict four plasticizers
(DEHP, BBP, DBP, DiBP) and one flame retardant (HBCDD)
• All of these substances were identified as REACH SVHCs
• No timeline has been communicated, but the earliest
restriction date could be mid-2017 through 2019
• Additional substances envisioned are TBBPA (flame
retardant), MCCP (flame retardant/plasticizer) and PVC

10. NEW REGULATIONS TO MONITOR
A preview and explanation to compliance initiatives coming soon

11. Canada - BNST Substance Restriction
• Canadian Regulation “Prohibition of Certain Toxic
Substances Regulations, 2012 (the Prohibition
Regulations)” came into force on March 14, 2013
• 2 year exemption was given for the EEE industry, which
expired on March 14, 2015
• BNST stands for “Benzenamine, N-phenyl-, Reaction
Products with Styrene and 2,4,4-Trimethylpentene”

12. Canada - BNST Substance Restriction
• May be found in lubricants that are sometimes used for high-
speed electrical motors in electronic products (such as hard
disk drives)
• This Regulation prohibits the manufacture, use, sale, offer for
sale or import of BNST (or products containing BNST) into
Canada
• Under certain conditions, renewable 1-year permits can be
granted for companies that provide a transition plan

13. California Green Chemistry Initiative
• Also known as “California REACH”
• The California Department of Toxic Substances Control (DTSC)
recently released the Priority Product Work Plan on April 16
• A 3 year plan to “accelerate the quest for safer products” under the
Safer Consumer Products Act (SCPA), established in October 2013
• May result in products being forced out of the California marketplace
if offending chemical ingredients are not removed

14. Priority Product Work Plan Focus Areas
• The types of companies targeted by the plan:
– Manufacturers
– Retailers
– Importers
• The product categories that are affected:
– Beauty
– Personal care, and hygiene products
– Building products
– Household and office furniture and furnishings
– Cleaning products
– Clothing
– Fishing and angling equipment
– Consumable office machinery

15. ZWS APPROACH TO COMPLIANCE IMPLEMENTATIONS
We’ll explanation why our methodology works for your project’ budget and needs

16. A 3 Phase Strategy Ensures Success
1. IMPLEMENT
• Basic setup of the PG&C
module and fields
• Set up specification,
substance, and exemption
libraries associated with
your compliance
regulations
• Resolve any issues that
may impact compliance
automations and
processes
2. CUSTOMIZE
• Install LoadState product
for compliance data import
• Deliver PX automations for
BOM management and
compliance reporting
• Automate workflows and
other tasks to increase
regulatory efficiency
• May be separated into
multiple phases based on
solution scope
3. STRATEGIZE
• Incorporate compliance
metrics into other areas of
Agile PLM
• Improve AML vendor
selection and product
design alternatives that
reduce legal and
environmental risk
• Introduce compliance
research earlier into the
product release process

17. ZWS Approach Benefits
• A complex implementation broken into logical and
manageable phases
• Reduces solution dependencies and testing effort
• Faster delivery with reduced cost
• Avoids perpetual development pitfalls

18. CUSTOMER STORY – SUB ZERO-WOLF
Success story of PG&C and LoadState, and benefits resulting from the implementation

19. IMPLEMENTING PRODUCT GOVERNANCE &
COMPLIANCE

21. Sub-Zero's Implementation of PG&C
1. PG&C Module
2. Business Process Development
3. Continuous Improvement

22. PG&C Module
• Standard Software
Configuration
• Data Migration
• Loadstate

23. Business Process Development
• Developed Role with Software
• Transferred Responsibilities
• Process Drives the System

24. Continuous Improvement
• Developing Role
• Non-restrictive configuration
• Compliance Lifecycle

25. Product Governance & Compliance
• PG&C Module
• Business Process Development
• Continuous Improvement

26. WE WILL NOW OPEN UP THE AUDIO TO VIEWER QUESTIONS.

27. COMPLIANCE@ZEROWAIT-STATE.COM
Contact us if you have any questions!