This shows the Result of the external Audit November 2012 of the Saia Burgess Controls "Lean Enterprise Operating System" C-Net along ISO 9001-2008. The development of this system has been made under the Leadership of Juergen Lauber as MD form 2001-2013

1. * AUDIT/ASSESSMENT PROGRAM
* Translation from original 'Auditbericht' by SQS
Schweizerische Vereinigung
für Qualitäts- und Management-
Systeme (SQS)
Bernstrasse 103
3052 Zollikofen
Switzerland
T +41 58 710 35 35
F +41 58 710 35 45
www.sqs.ch
Zollikofen, 22nd November 2012
Page 1 of 6
Document 596_1
Hermann Widmer
hermann.widmer@sqs.ch
T +41 58 710 33 97
Company/Organization
Saia-Burgess Controls AG
Bahnhofstrasse 18
3280 Murten
Switzerland Business account 130731
Contact Herr Daniel Gumy daniel.gumy@saia-burgess.com
T +41 26 672 72 77 F +41 26 672 74 99
Number of employees 250 Site/s 1
Service
Audit/Assessment
Re-certification audit (reduced)
Project number
P05086.50
Audit/Assessment beginning/end
20th November 2012 – 21st November 2012
Certified area
Entire Company
Field of business
Electronic control and automation technology
Normative basis
ISO 9001:2008
Scope
Scope 19
Registration number
10524
Certificate valid from/until
13th December 2012 – 12th December 2013
Next audit
19th – 20th November 2013
Auditor/Assessor 1
Mr Hermann Widmer ---
Auditor/Assessor 2
---
Auditor/Assessor 2
---
Observer/Expert
---
Released Date Signature
Lead Auditor/Assessor 22nd November 2012
Commission of Experts 22nd November 2012

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1. Conformity with requirements ............................................................................................................. 2
1.1. Background ...................................................................................................................................... 2
1.2. Overall impression .......................................................................................................................... 2
1.3. Compliance with requirements and application for award of certificate ............................................ 5
1.4. Next assessment ............................................................................................................................ 5
2. Non-conformities ................................................................................................................................. 6
2.1. Major non-conformity ...................................................................................................................... 6
2.2. Minor non-conformity) ...................................................................................................................... 6
3. Instructions for continuous improvement ............................................................................................. 6
1. Conformity with requirements
1.1. Background
Audit programme
Due to the acquisition by Honeywell of Saia-Burgess Controls AG and at the customer’s request, a reduced
re-certification audit was conducted (certificate valid for one year). This took place in accordance with the
established audit programme.
Last assessment
Certification audit
Maintenance audit
Re-certification audit
Organization
On 24th October 2012, SQS was informed that the company Honeywell is to acquire Saia-Burgess Controls
AG. Currently the usual checks are underway within the Company by its new owner and it is anticipated
that the transaction will be completed in late January 2013.
The organizational chart was adapted to new circumstances on 1st
October 2012 (e.g. new Head of Corpo-
rate Sales). In the area of strategy there are at present no changes and it remains based on the document
"Strategic statements and cornerstones" dated 21st
November 2011.
Offering/market orientation:
Saia-Burgess Controls AG continues to be active in the development, manufacture and sale of systems in
the control and automation fields (PLC-based control and automation technology, hardware, software and
firmware, factory and building automation, control engineering for production machines, automation pro-
jects, control of infrastructure systems in buildings, tunnels, etc.). The Swiss market is handled directly. In
the international area, markets are looked after by wholly owned sales companies and distributors.
1.2. Overall impression
General observations
Honeywell employees visiting Murten from Schönaich, Germany, took the opportunity to accompany the re-
certification audit and thereby also obtain a picture of implementation in the processes. In summary, the
general impression formed from this accompaniment was very positive.

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After a brief introduction of the takeover process, the Managing Director informed us about the current
situation, including changes that have occurred and challenges that still exist. Regarding the business
model (with the clear display showing target markets) and basic documents (e.g. Core Statements, Quality
Guidelines) no important changes have been made. It is striking to note how the ‘lean’ system has been
rigorously implemented in all areas. This is also shown in the new issue no. 13 of the automation yearbook
“Controls News 2012”, which includes a variety of very clearly presented applications in the field of "Lean
Automation".
With this magazine and the new "Saia System Catalogue", the team has created two outstanding docu-
ments with great customer value. Congratulations!
Suitability of the management system
Further development of the C.Net management system will continue systematically, including the integra-
tion of newly drafted documents. During the Audit, it once again became clear that the Managing Director
strongly promotes this system and has now extended it to sales subsidiaries. It is obvious that C.Net is
continuously updated in the various areas and that it is provides an important foundation. Employees are
very familiar with it and find the basic documents easily. (e.g. the various navigation pages or links to job
instructions, checklists, etc. for processes). Integration can therefore also be assessed as very good. In the
current year, 26 internal audits were conducted according to plan (e.g. Process 23 Production dated 28th
September 2012). The benefit of these audits was optimized by working with cross-departmental auditors
(e.g. Factory 1 audited Factory 2). The planned Management Reviews are take place and are documented
accordingly (e.g. from 7th
to 9th
May 2012). In the report, each area is assessed by managers (with real
figures, strengths and weaknesses, etc.) and evaluated by the Managing Director with the addition, if nec-
essary, of further corrective measures.
Process management
Process management practice is good and in all areas processes are effectively monitored by means of the
Management Reviews, which were introduced several years ago. If targets are missed or trends become
negative, the appropriate bodies "Committee" will initiate any necessary corrective measures.
Assessment of measures taken regarding deviations in last audit
At the last maintenance audit, no deviations were identified.
Comments and notes on selected topics
Management processes
It was again noted that processes are well presented and rigorously implemented. Strategic planning and
implementation is described in Process 11 dated 2nd December 2010. Specific strategic planning for the
years up to 2015 is shown in the current 3-year plan (updated December 2011) and foresees further growth
in the coming years. This will be achieved mainly through the introduction of the new product line «Electro-
line». Strategic statements with objectives, missions and milestones are defined in the document dated
23rd November 2011. There is satisfaction with the course of business, as can also be seen in the monthly
«State of Trade» for October 2012. Following its introduction, the “SEMAN” self-management system has
been further refined (mini SEMAN) and continues to prove its worth. Managers within the individual BUs
make successful use of the system and the six-monthly Management Reviews take place as planned (e.g.
BU CPS dated 7th May 2012).

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The overview of "bodies" 12-008 was redrafted on 15th October 2012 and has been systematically imple-
mented in the various meetings (e.g. BU CC dated 16th November 2012). Communication within the com-
pany is still very open and regular (e.g. information to employees from the Managing Director on 30th April
2012). Customer satisfaction is regularly ascertained and the procedure used was certified by TÜV Süd in
June 2012. The results obtained, which have mostly proved very positive, are published on the website
together with customer video testimonials. Resource management continues to follow strongly the ‘lean’
system and necessary investments are made (e.g. a variety of wave soldering equipment).
Added value processes
This reduced re-certification audit examined added value processes in both factories with almost entirely
positive results. In all processes it was again possible to show optimizations and note that employees are
motivated to contribute their ideas (e.g. shortening of «pitstop» times, improvements to productivity, reduc-
tion of throughput and assembly times, Kanban in forwarding/shipping). Results are displayed visually in
the relevant areas (e.g. SMD production) and allow a quick overview of the situation and any ongoing cor-
rective measures, including progress made (e.g. using shadow boards, display of working stock or through-
put on screens). By systematically recording customer requirements and rigorous implementation, the pro-
duct portfolio continues to meet expectations very well. Since the corporate culture is consistently focussed
on lean principles, it has been possible to achieve further increases in efficiency and manage growth. A
high delivery capacity provides further proof that processes are under control.
International Sales & KAM processes have been clarified and it is possible to trace changes in the various
price lists. The appropriate guidelines have also been adapted (e.g. 21_501 dated 20th November 2012).
Special customer features can be viewed in the system with the basis of a printed price list for April 2012 –
March 2013.
The random sample for Product Development & Care processes was rather short. Processes have been
optimized and the lean-PEP system introduced (i.e. product development with key steps from mission/idea
to project end). With the audited project ‘PCD3 with 2 Ethernet interfaces (no. 140230)’ it was found that
tools are applied consistently (e.g. checklists, review logs) and steps are traceable (e.g. mission/idea dated
5th October 2011 or HP Document dated 5th October 2012). In SAV there has been a management
change and, from a few examples, it was possible to see that processes are well under control (e.g. Field
8D Report no. 12-090 dated 21st September 2012).
In the area of Customer Support, training and support processes were examined. In addition to the new
training center, which is used actively, another training room has been created. Available courses are indi-
cated on the website and customer satisfaction is consistently assessed after course completion (e.g. from
14th - 17th May 2012). In Support, processes are under review and standardization across international
subsidiaries is sought.
Processes in Purchasing continue to be implemented systematically and successfully. Through sustained
cooperation with suppliers, their performance can be rated as very good (reliability and quality of deliver-
ies). With the most important suppliers, delivery agreements have been concluded that underpin efforts
towards long term partnerships. Suppliers are assessed on the basis of clear facts and they are informed of
the results. Random samples in operational procurement and incoming inspection were positive.
Due to time constraints, production processes in Factory 2 were not audited in the usual depth. The overall
impression of the areas CPS (central production service) with SMD operation and BFL (Beschaffung-
Fertigung-Logistik = Purchase-Production Logistics) small devices was very positive and the teams are
successfully led. Once again, numerous optimizations have been implemented (e.g. checkpoints for sten-
cils, paperless Kanban for BU CC, transparent display of operating times with the «Monipro» for lines1 and
2, reduction of pitstops and increased flexibility, energy meter assembly with the help of assembly images
on Saia Web Panels).
In Sales Logistics in Factory 1 there has been a change of management and processes have, for exam-
ple, developed further towards lean under the «Smart Logistics» project. Orders are handled in order proc-
essing and all important information can be viewed on the central site (e.g. specification documents/job

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instructions, key data). Forwarding is now integrated into manufacturing and has been completely recon-
structed (e.g. removal of wall and installation of Kanban shelves, new skylights). Approximately 200 items
have been integrated into the Kanban system and 4 standardized invoicing spaces created. With these and
other corrective measures an efficient flow of goods is achieved.
In PCD production too, (board placement and assembly) in Factory 1 the audit sequence was rather short
and concentrated mainly on the improvements achieved. Due to rising order numbers it was necessary to
improve processes continuously. Therefore, thanks to consistent implementation of the lean principle, nu-
merous optimizations have been put in place (e.g. assembly time for PCD1 from 6 to 2 days, consistent
implementation of «one piece flow»).
Support processes
HR processes are represented as a closed loop and have been well implemented. Further new ideas have
been introduced into processes (e.g. the so-called «settling phase»). Systematic induction of employees
and continuous in-house training enjoy a high priority. Random samples have shown good practical imple-
mentation (e.g. induction of new employees with programme, information on «Controls Ready» and proba-
tionary interview, team feedback after the settling phase, carrying out annual meetings, training records,
and management of personnel files). To give all staff throughout the company constantly available informa-
tion, access via Google Sites has been implemented. The situation in the area of working safety can be
assessed as positive.
In the area of plant and machinery maintenance it was noted that the new concept has been well imple-
mented by properly trained people in charge. The planning and records procedure has therefore been op-
timized and maintenance contracts with suppliers updated. Operation of the measuring and test equip-
ment is correctly described in the processes, however implementation is not always completely effective
(see Minor non-conformity).
1.3. Compliance with requirements and application for award of certificate
Compliant, application for award of certificate for
Compliant, application for award of certificate with minor non-conformities for
ISO 9001:2008
Non-compliant for
Major non-conformities
If corrective measures assessed positively, application for award of certificate will be made
After follow-up audit with positive result, application for award of certificate will be made
Validity of certificate
Uninterrupted validity commencing with expiry of existing certificate
New validity commencing after approval of application
1.4. Next assessment
Extraordinary maintenance audit
Maintenance audit
Re-certification audit
Follow-up audit
Verification of conditions (see notes)
Date
See cover sheet

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Notes
The audit program for a re-certification audit will be defined at the preliminary organizational meeting on
15th October 2013, 08.00 hrs.
2. Non-conformities
2.1. Major non-conformity
No major non-conformity has been identified.
One minor non-conformity has been identified.
Minor NC Normative basis Date Deadline
1 7.6 20th November 2012 20th November 2013
Description During the audit it was noted that the process for operating
measuring and test equipment is not yet fully effective. For ex-
ample, some test tools (e.g. BU-CI/HMI) and measuring devices
were not calibrated in time. Also, documentation was not always
complete (e.g. TT135 had no log entry and B160 had no en-
able).
Next step Analysis of causes, implementation of corrective measures and
provision of proof at next re-certification audit.
3. Instructions for continuous improvement
1 Sales: It was noted that customer-specific special features in VINT or VCH are not always up-to-date
on the corresponding displays (e.g. Q_65071 for Argentina).
Also, the date of the update is not always obvious.
2 SAV/Support: An analysis of all course evaluations (e.g. transparent assessment of individual evalua-
tions, long-term view, 1x per year) might possibly make overarching corrective measures necessary.
Energy supply to unused training rooms should be consistently switched off (energy saving potential).
3 Purchasing: In the context of supplier evaluation in Factory 1, it was noted that there was not always
a strong request for improvement from B-suppliers (e.g. the supplier ADEL Systems srl). Also, the an-
swer was not filed in the appropriate folder.
4 Manufacturing Small Devices and Boards: The polyvalence list in C.Net was not updated. Proc-
esses (e.g. 23-432) must still be extended with the new test using a balance. The operating procedure
for checking the solder joints (according to IPC-A-610), which is quite old, should be checked for cor-
rectness, and integrated into C.Net. Otherwise, the one from SMD production should be adopted (with
addition of wire solder joints).
5 Maintenance: In general good progress has been made and the new concept is being implemented.
The existing definition of ABC machines should be checked and adjusted if necessary. Existing «key
machines» should preferably be referred to as A-machines.
6 Working safety: Existing indicators in the working safety area should be displayed with rather more
transparency in C.Net (e.g. downtime regarding illness or accident either in or outside workplace).
The new regulations for SQS services and guarantee marks and the applicable product ruling for the ap-
propriate standard were explained and handed over to the customer.
The Auditor would like to thank all concerned for the pleasant, constructive and open cooperation during
the reduced re-certification audit, wish them every success with the integration process into the Honeywell
Group, and looks forward to the next opportunity to be of service.
Zollikofen, 22nd November 2012 WIH/HIM