i 1 solectron -1 · 1 i -1 i] 1 1 1 1 +i i j 1 :i 11 ;1 3 4 j i solectron project summary:...

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SOLECTRON

PROJECT SUMMARY:

Solectron Technology Inc. has completed its initial product conversion to VOC-free, no-clean fluxes for assembling printed circuit boards. One product had been converted (now discontinued because it reached end of product life), and a second is starting with the new process.

The conversion offers the advantages of eliminating the Volatile Organic Compounds, solid wastes, liquid hazardous wastes and the handling costs associated with the aqueous washable flux systems previously used. Using a 100,000 board basis (the planned production build of the new card over the next 40 weeks), a reduction of 11 76 Ibs of solid waste, 351gallons of hazardous liquid waste and 1033 Ibs of volatile organic emissions will have been eliminated from Solectron's facility. Yield impacts are negligible in the SMT processes. Yield impact in the wave solder area will be heavily board design dependent. The first card implemented had an increase of 1.5-2 bridgedboard, whereas the second has a simpler design and a yield results will be comparable to an aqueous flux systems' results.

Significant work and investments were required to convert the process to the new materials. The length of the pay back period financial results will be strongly influenced by the length of time it takes Solectron to reach maximum cleaning capacity within the factory. While excess capacity exists (as it does now), the conversion eliminates the labor associated with the washing processes, but does not eliminate the cost of operating the existing cleaners or eliminate the need to buy new cleaners. Using the 100,000 board basis for this business case, a 3.4 year pay back is expected. Once full cleaning capacity is reached, the conversion to the new process eliminates the need for further investments in cleaners and their operating costs. This situation dramatically reduces the pay back period to .5 years. Although Solectron is not currently at maximum cleaning capacity, given its dramatic growth rate, it will be in the foreseeable future. A pay back period somewhere between the two figures above is expected.

Solectron Technology, Inc. 6900 Mallard Creek Road, P.O. Box 562148, Charlotte, N.C. 28256-2148

Phone (704) 598-3300 Fax (704) 598-3333

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# SOLECTRON

SOLECTRON TECHNOLOGY, INC.: Solectron Technology Incorporated (STI) is a contract assembler of printed circuit boards for the electronics industry. Established as a wholly owned subsidiary of Solectron Corporation of Milpitas, California, STI has been in operation at its present facility in Charlotte since 1992 and presently employs about 720 regular and 300 contract employees. Hours of operation are normally three shifts, 5 days a week.

INTRODUCTION TO THE PROBLEM: Although Sotectron offers a wide array of pre-manufacturing (such as printed circuit board design), manufacturing (such as printed circuit board assembly and final “box” assembly), and post manufacturing (such as refurbishment and repair) services, the majority of its work is the board assembly process itself. To do this, many sophisticated processes are used through which various electronic components are soldered to printed circuit boards. These processes utilize a fluxing step, by which an acidic compound is used to “clean” chemical oxides from the leads and board, followed by the addition of molten solder to the cleaned joint in such a way that the solder forms a metallurgical bond between the component and board. Although there are several different processes by which soldering is done, volatile materials are inevitably driven from the flux, and a flux residue is left on the finished board. These two results impact the manufacturing process in that they often become environmental and board quality issues.

The flux’s solvent system and the nature of the acidic compounds themselves are the primary determinants on the extent of environmental issues the process will present. Earlier technologies used “rosin” type fluxes, which left a residue on the board that was still “active” (requiring cleaning), but were soluble only in such solvents as chlorinated fluorocarbons (CFC’s). The resulting processes therefore released significant amounts of Volatile Organic Compounds (VOC‘s) to the atmosphere, and required costly cleaning step(s) using exotic solvents with all their inherent environmental complications. The Montreal Protocol set the industry into motion to eliminate CFC’s from their processes. A conversion to aqueous fluxes was the result. Aqueous fluxes utilize a water soluble solvent system so that the residues can be removed with a water cleaner, eliminating the CFC’s.

Since its inception in Charlotte, Solectron Technology has used such an aqueous based flux system for its board production. Although the process is far superior to the rosin systems requiring CFC’s, they still present two additional areas for potential further “environmental improvements”. First, most aqueous based fluxes use a water and alcohol blend for the solvent system. Thus, alcohol is emitted to the environment in the form of VOC’s. Second, its residues are still active and must be removed. Although CFC’s are not needed to remove them, significant capital, energy, and disposal costs are still associated with removing the residue, treating the waste water, and paying for solid waste disposal. For these reasons, Solectron has been working to convert to new flux systems which contain non-VOC solvent systems, and whose residues are inactive (thus being referred to as “no-clean” fluxes). These materials offer these two “final”

Solectron Technology, Inc. 6900 Mallard Creek Road, P.O. Box 562148, Charlotte, N.C. 28256-2148

Phone (704) 598-3300 Fax (704) 598-3333

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improvements for the environment. In addition to eliminating the VOC’s, the residues left on the board are harmless, eliminating the entire cleaning process, with all of its inherent costs and waste disposal issues.

These conversions are not trivial, however. A number of issues have to be addressed. For example, a significant amount of work has to be done to first qualify the material systems for the user’s processes and end use products. In addition to picking the material for ease in processing, the selection must reflect the material’s long term impact on board performance. This selection and testing phase alone takes several months, and was completed at Solectron’s Milpitas, California facility. Once that work is done, extensive additional work is still required. The changes in the materials dictate very fundamental process changes (such as flux application method), which dictate new pieces of capital equipment. Once those are in place, process optimization must occur for the board(s) to be run. Next, the process must be documented and the operators trained. After that is done, customers must be converted to the new process. Based on their end product usage/application, the type of board in question, and even their pre-conceived notions about no-clean flux chemistry, they may be quite willing or very reluctant to convert. Therefore, the conversion rate is variable within a factory by customer. Therefore, often the best conversion strategy is to work with a customer familiar and comfortable with no-clean on a high volume board. Once that board is in production, work can begin on the next, and continue until all likely candidates are being run with the no-clean process.

TECHNICAL DESCRIPTION OF EXISTING PROCESS:

Surface Mount Process:

Surface Mount Technology (SMT) components are designed to rest on the top surface of the board with the individual leads placed directly onto a “pad”, where the joint is made. This is done by first screening a solder paste (mixture of very small solder particles and flux) through a stencil so that discrete deposits of solder paste are applied directly onto the board’s pads. The board is then loaded into a “placer” which places the SMT components in their proper position. At this point in the process each discrete deposit of paste is sandwiched between the board’s pad and the component‘s lead. The board is then carefully passed through a reflow oven, whose function is to heat the board, paste, and components in a very controlled manner. During this “reflow” process, the fluxes are activated (the addition of heat increases the rate of the chemical reaction) so that the oxides on board and leads are removed. The volatiles are then driven off, and the temperature increased until the solder particles melt, forming the metallurgical bond between the pad and leads. The board is then cooled permitting the solder to harden.

STI has historically used Alpha 1208s water soluble paste for this process. By weight it is 85-90% solids (solder) and IO-15% flux. VOC’s account for 2.5% of the paste. In normal production, VOC emissions are estimated to be .064 Ibs/machine/day. In 1995 STI emitted 208 pounds of VOC from its reflow ovens. Since 1208@’ is not a no-clean formulation, its residues must be removed in an in-line aqueous cleaner. In-line cleaners cost anywhere from $60,000-$200,000 new and about $36/hour/machine to run (this number includes maintenance labor, chemicals, and energy). In addition, the disposal of the waste filter cake adds another $1.25/hour/machine manufacturing costs.

Occasionally boards are “misprinted” (the paste is not screened in the proper positions, or not deposited as discrete deposits) and the paste has to be removed, the board cleaned, and the

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@ Alpha 1208 is a registered trademark of Alpha Metals Corporation.

D.W. Greenfield 2 Solectron Technology, Inc.

process started over. This is done by wiping the excess paste from the board and then passing it through the same in-line aqueous cleaner used to clean residues off.

Wave and Touch-up/Hand Soldering Processes:

Pin Through Hole (PTH) components are designed so that the leads stick through holes in the board. The joints are formed by first inserting the components into the board and then loading it onto the conveyor of a wave solder machine. As the board travels along on the conveyor, flux is first applied to the bottom of the assembled board. The board is then preheated to get it near soldering temperatures, activate the flux, and drive off the volatile solvents in the flux system. Once that is completed, the board is carefully passed over a “wave” of molten solder so that only the bottom of the board is exposed to the wave. During the 1-2 seconds that the wave is in contact with each pin and pad, the solder “wets” their surfaces and flows up through the hole. It then exits the wave, and cools to form the joint.

STI has historically used Lonco 3355-1 I@’ for wave soldering. Its solvent system consists of 42% Isopropyl Alcohol (IPA) and 39% water. Both its composition and the application process result in a significant VOC emissions. The flux is applied by bubbling air up through a reservoir of the flux so that a “foam head” is formed. The assembled board is passed over this head during processing, so that a film of flux is smeared over the bottom of the board. During the preheating and soldering process 100% of the IPA is driven off into the exhaust stream. In addition, when air is bubbled through the flux reservoir, a significant amount of IPA is driven off, even when boards are not being fluxed. This is due both to the volatility of the IPA and the large surface area the flux foam head presents to the atmosphere. As the IPA evaporates, the solids level in the flux increases. In order to maintain the optimum solids level for soldering, additional IPA has to be periodically added to the flux reservoir. In 1995 STl’s actual VOC from wave and hand soldering was 32,510 pounds, or about 8100 pounds per wave solder machine. Of this quantity, the vast majority can be attributed to the wave soldering process itself.

The residues are removed with the same in-line cleaners used for washing the boards after they complete SMT reflow. Currently there are three such cleaners in operation at STI, one to support SMT and two to support wave and hand soldering. Their total operating costs would therefore be the same, at $37.25/hour/machine.

Hand Soldering/Touch-up:

(STI permits hand soldering under the same permit as the wave solder machines; the emissions are included in the numbers mentioned above.)

TECHNICAL DESCRIPTION OF THE NEW VOC-FREE, NO- CLEAN PROCESS:

SMT Process:

STI is using Alpha LR725O2 for its no-clean SMT operation. The new process does not present any major changes for the actual SMT process. The processes of screening the paste on the board and reflowing the paste have only minor changes, if any at all. The placing process is identical. The most significant change occurs in the cleaning of misprinted boards and stencils

Lonco 3355-1 1 is a registered trademark of Alpha Metals Corporation. 1

* Alpha LR725 is a registered trademark of Alpha Metals Corporation.

D. W. Greenfield 3 Solectron Technology, Inc.

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after use. The SMT paste is not soluble in water alone, but requires the addition of a saponifier to the water to help cleaning. While cleaning misprinted boards and dirty stencils is an intermittent event, is does require the purchase of a new stencil/board cleaning machine capable of handling the saponifier. STI has purchased an Austin American batch cleaner for this purpose.

Wave Soldering Process and Touch-uplHand Soldering:

The VOC-free, no-clean process presents significant technical hurdles for wave soldering. First, it is important to apply a more controlled, thinner layer of flux to the bottom of the board. Second, the lack of IPA makes it difficult to bubble (as was done with the Lonco 3355-1 10). For these two reasons, the flux is now applied through a spray fluxer. STI has purchased two Sensbey Microx spray fluxers for this purpose. Currently one is on-line; the other will be brought on-line once more product is converted. This major change dictates a significant amount of work to be done, including: process optimization, procedure documentation, establishing maintenance spare parts in the tool crib, maintenance procedures, training, etc.

The second major hurdle associated with no-clean wave solder fluxes is that the solids are not nearly as active as those in water soluble fluxes. As such, the “process” window (the range in process parameters over which the variable settings may vary and still produce acceptable product) is very significantly reduced. In order to increase it as much as possible, additional capital is spent on the wave solder machine. First, the soldering process will perform better if oxygen is not present around the wave. Therefore, a nitrogen inerting wave was added to the unit. Second, the flux requires a more uniform preheating than was previously required. Rather than using a radiant type preheater, as was used on earlier machines, a convection preheater is used. Both of these items add cost to the machine. Even with these, however, the process still has a much tighter window, with a higher level of touch-up (the degree dependent upon the board complexity), the result. Extensive work is required to convert the process over.

Hand and touch-up soldering require a different technique when soldering with no-clean fluxes. These differences are taught in STl’s hand soldering classes.

ASSESSMENT OF WASTE REDUCED DURING PROJECT PERIOD, AND FINANCIAL ANALYSIS:

REDUCTION IN WASTES:

Elimination of Waste in the SMT Process:

Assumptions/Data:

1 ). 2). 3). 4).

5). 6). Three shifts / day.

Production rate of 2 boardslminute. VOC emissions of .064 Ibs/day/machine with Alpha 12080 paste. Filter cake production of I .5 Ibs/hour of cleaner operation. Volume of filter cake production associated with use of stencil cleaner insignificant in comparison to board washing. Cleaning rate = 5 boards/minute.

Hours of Production Required to Process 100,000 boards through SMT Attach Process = (100,000 boards) x (1 minute / 2 boards) x (1 hour / 60 minutes) x (1 I .85 utilization) = 980 hours of production.

1 D. W. Greenfield 4 Solectron Technology, Inc.

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Hours of Production Required to Process 100,000 boards through SMT Wash Process = (100,000 boards) x (1 minute / 5 boards) x (1 hour / 60 minutes) x (1 / .85 utilization) = 392 hours of production.

VOC Eliminated = (980 hours of production) x (.064 Ibs VOC /day) x (1 day / 24 hours) = 2.6 Ibs of VOC emissions eliminated.

Filter Cake Reduction = (392 hours of production) x (1.5 Ibs filter cake / hour) = 588 Ibs of filter cake eliminated.

Elimination of Waste in the Wave Solder process:

Assumptions/Data:

1). 2).

3).

4). 5). 6). Two shifts per day.

Production rate of 3 boards / minute. VOC emissions of 6340 Ibs /year / machine (IPA in flux and IPA make up for solids level control). Disposal of waste IPA/Lonco 3355-1 I@ (60/40 w/w%) at 2200 gallons/year/machine. Cost of disposal at $375 / 53 gallon drum. Filter cake production of 1.5 lbslhour of cleaner operation. Cleaning rate = 5 boards/minute.

Hours of Production Required to Process 100,000 boards through Slide LineWave Soldering Process = (100,000 boards) x (1 minute / 3 boards) x (1 hour / 60 minutes) x (1 / .85 utilization) = 654 hours of production.

Hours of Production Required to Process 100,000 boards through Post Wave Wash Process = (100,000 boards) x (1 minute / 5 boards) x (1 hour / 60 minutes) x (1 / .85 utilization) = 392 hours of production.

VOC Reduction = (654 hours of production) x (1 shift / 8 hours) x ( 1 day / 2 shifts) x x (1 year production / 256 days) x (6340 Ibs VOC / 1 year production) = 1012 Ibs E emissions eliminated.

Liquid Waste Elimination = (654 hours of production) x (1 shift / 8 hours) x (1 day / 2 shifts) x (1 year production / 256 days) x (2200 gallons / year /machine) = 351 gallons of liquid hazardous waste eliminated.

Filter Cake Reduction = (392 hours of production) x (1.5 Ibs filter cake / hour) = 588 Ibs of filter cake eliminated.

Elimination of waste in the Hand Soldering / Touch-Up Process:

Assumptions/Data:

1). 2). 3).

.25 gallons touch-up flux used per week of wave production. 654 hours of wave production time required to build 100,000 boards. VOC content of Kester 450 NF03 touch-up flux is 92%, SG = 1.154.

Kester 450NF is a registered trademark of Kester Corporation.

i D.W. Greenfield 5 Solectron Technology, Inc.

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VOC reduction = (.25 gallons /week) x (1 week / 5 days) x (1 day / 2 shifts) x (1 shift / 8 hours) x (654 hours production) x (8.34 Ibs I gallon) x (1 .I54 s.9.) x (.92 Ibs VOC / 1 Ib of liquid) = 18.1 Ibs VOC eliminated.

SAVINGS ASSOCIATED WITH CONVERTING TO NO-CLEAN: While the estimation of waste elimination associated with conversion to no-clean processes is fairly straight forward (based on known usage rates of chemicals, VOC contents, etc.), the calculation of savings and pay back is not. Some items, such as the labor associated with loading and unloading the boards into cleaners is immediately realized as an “out-of-pocket” savings. Other items, such as the cost of running the cleaners (and buying new units), is clearly related to where the factory is at, relative to the maximum machine capacity. For example, if the factory is currently running at 75% capacity through its cleaners and a “no-clean board” is added to production, then certain costs (such as labor for loading and unloading boards from the cleaner) will be realized. Savings such as the $ 37.25 / hour to run the cleaner cannot be claimed as a savings since the machine has the capacity to accommodate the new boards and will be running regardless of the process used. On the other hand, when the wash process is near or at capacity, the addition of the board with a no-clean process presents a much more favorable business case. In addition to the labor elimination already mentioned, it now permits the company to avoid the purchase of the cleaner (at a cost of $60,000 - $200,000) and the costs associated with running that new cleaner, at $37.25 / hour.

Currently STI cleaning processes are not at capacity. Two factors contribute to make this a temporary situation, however. Future plans include moving part of the operations (with one cleaner) to a second building for further expansion. This, coupled with STl’s strong growth, will result in an “at capacity” situation at some point in the future. Therefore, while the full savings associated with no-clean processing will not be immediately realized, it is only a matter of time before they will. For this reasons, the savings and pay back will be analyzed both as an “under capacity” case and as an “at capacity” case.

SMT Process:

Assumptions/Data:

Cost of labor = $ 13.00 I hour. Cost of running cleaners = $37.25 / hour. Cleaning rate = 5 boards / minute. The misprint (board cleaning) and stencil cleaning rates are unchanged from the existing process. Costs of solder pastes are equivalent. Alpha 21 I O @ saponifier at $25 / gal, 1 gal / day consumption. 980 hours of production required to process the 100,000 boards through the SMT attach process. 392 hours of production required to process the 100,000 boards through the SMT wash process.

1 1 D. W. Greenfield 6 Solectron Technology, Inc.

“UNDER CAPACITY’’ SAVINGS:

Labor Savings to LoadlUnload Cleaner = (392 hours to wash boards) x ($13.00 / hour / operator) x (2 operators) = $10.192.

shift / 8 hours) x (1 day / 3 shifts) x 1 gal / day x $25 / gal = ($1.021). itional exDenditures for Alpha 21 I O @ Saponifier = (980 hours of production) x (1 ..

Net Savings = $ 10,192 - $ 1,021 = $9.171.

ADDITIONAL “A T CAPACITY” SA VINGS:

Cleaner Operation Savings = (392 hours of cleaner production time) x ($37.25 / hour)

Cleaner Purchase Savings = $ 150.000 (one unit for both SMT and Wave cleaning). = $14.602.

Wave Solder Process:

Assumptions/Data:

Cost of labor = $1 3.00 / hour. The labor associated with maintaining the spray fluxer is equal to that of maintaining and monitoring specific gravity of the foam fluxers. Cost of running cleaners = $37.25 / hour. Cleaning rate = 5 boards / minute. Elimination of pallet cleaning of once / 4 hours of operation. 654 hours of production required to process the 100,000 boards through the wave soldering process. 392 hours of production required to process the 100,000 boards through the post wave wash process. Cost of Nitrogen gas = $ .21/ 100 cf. Nitrogen gas consumption is 500 cfh. Lonco 3355-1 I@ cost at $15.14 / gallon. Consumption of 21 gallon / machine /week. Kester 970S@‘ VOC-free, no-clean flux at $17.00 / gallon. Consumption at 10 gallons / week. IPA at $ 3.29 / gallon. Consumption of 23 gallons I machine /week.

“UNDER CAPACITY” SAVINGS:

Labor Savings to LoadlUnload Cleaner = (392 production hours) x ($13.00 / hour / operator) x (2 operators) = $ 10.192.

Flux Savings Associated with Conversion = (654 hours of production) x (Ishift / 8 hours) x ( 1 day / 2 shifts) x (1 week / 5 days) x (22 gal /week) x ($15.14 / gal) - (654 hours of production) x (1 shift / 8 hours) x (1 day / 2 shifts) x (1 week I 5 days) x (1 0 gal / week) x ($1 7.00 / gal) = $1 382.

Savings Associated with the Elimination of IPA = (654 hours of production) x (1 shift / 8 hours) x (1 day / 2 shifts) x (1 week / 5 days) x (23 gal / week) x ($3.29 / gal) = $617.

($.21 / 100 c9. = G687.1 Additional exDenditures for Nitrogen = (654 hours of production) x (500 cf / hour) x

Net Savings = $10,192 + $1382 + 617 - $687 = $11,504.

Kester 970s is a registered trademark of Kester Corporation. 4

D. W. Greenfield 7 Solectron Technology, Inc.

ADDITIONAL “AT CAPACITY” SAVINGS:

Cleaner Operation Savings = (392 hours of production required) x ($37.25 / hour) = $14.602.

Cleaner Operation Savings Associated with Elimination of Pallet Cleaning = (654 production hours at wave) x (1 pallet wash / 4 hours) x (.25 hours / wash) x ($37.25 / hour)= $1,523.

Hand and Touch-Up Solder Process:

Assumptions/Data:

1). 2).

No net savings for soldering. Savings for wash elimination accounted for in wave soldering analysis.

In Circuit Test (ICT) Repair Touch-Up Solder Process:

Assumptions/Data:

1). 2). 3).

Assumed yield at ICT = .97. No net savings for hand soldering associated with repair work. Washing after repair labor = 10 minutes per board. (Repaired boards at ICT tend to be run singly, or in small groups with the repair operator catching hidher own boards through the cleaner.)

“UNDER CAPACITY” SAVINGS:

Labor Savings to LoadlUnload Cleaner = (1 00,000 boards) x (3 boards repaired / 100 boards) x (IO minutes labor / board repaired) x (1 hour / 60 minutes) x ($13.00 / hour) = $6.500.

ADDITIONAL “AT CAPACITY” SAVINGS:

Cleaner Operation Savings = (1 00,000 boards) x (3 boards repaired / 100 boards) x ( I minute / 5 boards) x (1 hour / 60 minutes) x ($37.25 / hour) = $373.

CAPITAL COSTS ASSOCIATED WITH CONVERTING TO THE NO-CLEAN PROCESS:

Receipts are shown in Appendix A.

SMT Process:

Capital: Austin American Stencil / Board Cleaner: Refrigerator for No-clean solder paste:

D. W. Greenfield 8

$53,995 $ 465

Solectron Technology, Inc.

Wave Solder Process:

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Capital: Sensbey Spray Fluxer: $ 42,290 Contour Wave for Wave Solder Machine: $ 9,750

Modifications to Spray Fluxer: $ 1,386 Spray Fluxer Filter Box: $ 846

Convection Preheat: $ 12,000

TOTAL EXPENDITURES: $ 120,732

TOTAL SAVINGS FOR 100,000 BOARD BUILD: “UNDER CAPACITY” SAVINGS: $ 27,175 “AT CAPACITY” SAVINGS: $208,275

The current planned build rate for the board is 2,500 /week. At this rate of production, pay back times can be calculated for both the “under capacity” and “at capacity” business cases:

“UNDER CAPACITY” PAY BACK = (100,000 boards / $27,275) x (1 week / 2,500 boards) x ($120, 732) x (1 year / 52 weeks) = 3.4vears.

“AT CAPACITY” PAY BACK = (100,000 boards / $208,275) x (1 week / 2,500 boards) x ($120,732) x (1 year / 52 weeks) = .5 years.

Although STI is not currently at capacity with regard to cleaning, given its growth rate, the actual pay back will inevitably end up somewhere between the two cases shown above. It is also quite evident that its ability to avoid the purchase of a new cleaner (and its operating costs) is the strongest lever it has in shortening the pay back period.

ADVANTAGES/DISADVANTAGES OF PROJECT IMPLEMENTATION: The obvious advantages and disadvantages of no-clean are reflected in the waste reduction and costing discussions. VOC free no-clean flux systems significantly reduce VOC emissions while eliminating cleaning. This in turn eliminates de-ionized water generation requirements, energy, capital expense, and water treatment expenditures associated with cleaning. The process does drive its own capital requirements, however, in addition to tighter process windows. Two other aspects have not yet been discussed. In some cases, a no-clean process will eliminate hand soldering of non-wettable components onto boards. Also, on some boards, the tighter process window will manifest itself in the form of lower yields. Both are discussed below.

NON-WETTABLE COMPONENTS:

Occasionally a board is designed with a component not designed to withstand the cleaning process. Once moisture penetrates inside the component, it is impossible to dry, with a long term field failure the expected result. In those cases, the boards are processed in the normal manner, except that the non-wettable component is left off. After the board is built, the component is typically hand soldered on (a slow, and less reliable process) with a no-clean hand soldering flux. Obviously, if the entire board is built with a no-clean process, this additional step is eliminated.

D.W. Greenfield 9 Solectron Technology, Inc.

YIELD / QUALITY:

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From an overall product reliability standpoint, solder joints made with a properly qualified and run no-clean flux will be equivalent to those made with an aqueous (or other) flux system. The primary differences show up in the processing of the boards themselves, where different yields may result.

SMT:

The SMT no-clean screening process is at least equivalent to the aqueous approach. As mentioned above, the LR7250 is not water soluble (hence, the need for the saponifier to aid in cleaning the stencil and misprinted boards). While this dictates the need for a new piece of equipment, it also makes the paste less sensitive to humidity in the environment. (Water soluble pastes tend to be hygroscopic. As they absorb moisture, their properties change. If enough moisture is absorbed, the paste may “slump” rather than staying in discreet deposits on the pads. If that happens, the yield will drop due to increased bridging between adjacent pads.

Also, such pastes usually tend to hold their “tack or stickiness longer, resulting in a longer process window between the time the paste is screened on and the time it is reflowed.

Under normal processing conditions, neither of these tend to be a big yield factor. Overall, the SMT yields are considered similar.

Wave Soldering:

The yield impact at wave solder is a strong function of the board being run. The lower solids level tends to result in a system more prone to bridging, but that does not necessarily mean that more bridging will occur. For instance, the computer board first converted to no-clean had some closely spaced leads. It also was being run with a process which, although advantageous overall, dictates a special wave solder pallet which aggravates the bridging tendencies at the wave. Regardless, with a proper profile in the aqueous system, the board could be run virtually bridge free. This was not the case in the no-clean system, however. The initial designed experiments resulted in best case results of 8-12 bridges / board. Further experimentation, tooling and process work reduced that down to where it was running less than 2 bridges I board when production was started. Once those were touched up, the ulimate overall rolled yield fell by about I-2%.

Early work on the new board suggests much more favorable performance throughout the process. The SMT yields will again be comparable. The board design is simple enough that bridging should not be a problem at the wave. Consequently, comparable yields are anticipated through the entire process.

RECOMMENDATIONS FOR FURTHER STUDY AND TESTING: Further work will fall into two areas. First, as new boards are selected for the no-clean process, specific work will be done to optimize the process for that particular design. The process of doing this will obviously provide more knowledge which can be applied to other, similar designs. Second, STI plans to do some fundamental work with the no-clean process to evaluate the fundamental tendencies to bridge, and how best to reduce that bridging through board design modifications. This work, though long term, will hopefully provide fundamental design approaches which can be applied to all new boards slated for both the aqueous and no-clean processes.

D . W. Greenfield 10 Solectron Technology, Inc.

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The no-clean process should provide the following savings (all numbers reflect a 100,000 board basis and 2500 board /week build rate, where appropriate):

The financial pay back period will be somewhere between .5 years and 3.4 years, depending upon how quickly the cleaning capacity is reached, and whether a sufficient amount of product is converted to no-clean so that the purchase and operational expenses of additional cleaners can be avoided.

D .W. Greenfield 11 Solectron Technology, Inc.

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1 APPEN DICES

D.W. Greenfield Solectron Technology, Inc.

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CAPITAL EXPENSE INVOICES

D.W. Greenfield Solectron Technology, Inc.

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AUSTIN

.~ Mr. Mark Jalilian

3 Charlotte, NC 28256-2148 Solectron 6900 Mallard Creek Road PO Box 562148

1 A M E R I C A N T E C H N O L O G Y C O R P( )R AT1 0 S

Quote: 053141363 (Rev 1) Date: June 6, 1995 Phone: 704-598-3285

Rep: SET Fax: 704-598-3333

Dear Mark:

Austin American Technology Corporation is pleased to quote your requirements as follows: 1 7

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JJnit price X-40A Opsn Loop AqueousAutomated $4O,OOO.G0 Batch Cleaning System for Non-Flammable Aqueous Mixtures 208V, 10 amp, 60 Hz, 3 phase power 40" X 40" x 3" processing area Automatic process safety control Stainless steel construction Particulate sedimenta tiodfiltra tion systems Automatic elevator w/air knife Power drain 110% capacity drip pan Panel on frame design Wash reservoir heater Chemical Metering Pump Main switch with lock-out Seals to withstand chemistry specified

Conforms to NFPA 70,79; IEC; NEMA 1, 12 and O.S.H.A. standards

Descri D t ion

/ Installation and training assistance

Options Specified by Solectron:

High Pressure (50 PSI) Wash Package Xot Vortex Dryer $ 5,2210.00

$ 2,500.00

Water Knife Rinse (including PCB/Stencil Switch) $ 4,800.00 Safety Interlock for Front Door $ 380.00 Low Level Sensor (alarm) for Wash Chemistry $ 565.00 Low Rinse Water Pressure (50 PSI) Sensor (alarm) $ 550.OQ

TOTAL SYSTEM AND SPECIFIED OPTIONS PRICING

Jon R. Phelps Sales Manager

12201-160 Tcchnologu I 3 l ~ d .

$53,995.00

AUSTIN AMERICAN TECHNO1,OGY CORPORAI'ION

Quote: 053141363

Available Options (not included in base pricing):

Tool Basket Substrate Basket (2 shelves) H channel multi-stencil holder Filter Change Light Rinse Reservoir Heater Nitrogen Purge Vent Hood

$ 750.00 $ 2,500.00 $ 700.00 $ 550.00 $ 2,500.00 $ 3,200.00 $ 2,800.00

Delivery 6 weeks ARO Lead time subject to change at time of order.

Note: When Dlacing order, please sDecifv voltage. Open or Closed loo^ and anticbated chemistry.

Terms are 34 % down with order, 33 % upon shipment, 33 Net 30 days, (US Dollars) FOB Solectron Charlotte, North Carolina

All prices are good for 30 days.

Service provided at AATs Standard Service Rate. Please refer to quotation number when ordering. All sales made in accordance with AAT's standard Terms and Conditions. Please contact AAT or your local AAT representative if you have any questions. Note: A rinse Reservoir heater would be needed in a closed loop system for the skimmer to be effective. However, in an open loop system with a hot water rinse, you should be fine without the rinse Reservoir heater.

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2430 Interstate 85 South QUEEN CITY Charlotte, NC 28208-2715 N a APPLIANCL (704) 391.6000

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SHIP TO:

DD D U ~ L I CRTE I NVCJ I CE

Warranty Claims and Returned Goods Must B e Accompanied By This Receipt.

SENSBEY INCORPORATED 833 Mahler Road, Burlingame, California 94010 Tel, (415) 697-2032 Fax: (415) 697-2527

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I SOLD TO: SOLECTRON CORPORATION P.O.# CRH-6007 - ATTN: ACCOUNTS PAYABLE QUOTE #: 10641 P.O. BOX 562148 CHARLOTTE, NC 28256-2148

SALES TAX: N/A SUPP #: OS042 No. 13526A.

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INVOICE DESCRIPTION UNIT PRICE RUANTITY AMOUNT

1 1 1.) MICROX SPRAY FLUXER MACHINE MXL-450J 38,500.00 SERIAL NUMBER: TBD.

1 38,500.00

-. . Fy3P SOLECTRON CORPORATION 6900 MALLARD CREEK ROAD, BLDG No.: 1

( , \;LA. -'- rJ SHIP TO:

i p. c (-7 CHARLOTTE, NC 28256-2148 ATTN: h4R. DOUG GREENFIELD

1 P.O.# CRH-6007

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. - . Gastonia, N.C. 28053-0757

704-866-741 1

S O L E C T R O N

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K E E P THIS SLiP 'OK X E F E R E N C E - \ - I ,,7

CHALLENGE GRANT PROJECT PROPOSAL FORM, CONTRACT NO. W 6025,

SCOPE OF WORK

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1 1 D.W. Greenfield Solectron Technology, Inc.

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1 ' 1995-96 POLLUTION PREVENTION CHALLENGE GRANT

PROJECT PROPOSAL SUMMARY FORM t

NO-CLEAN/VE FREE PROJECT TITLE: GRANT REQUESTED: $ 2 0 9 000 TOTAL PROJECT COST: $ +

APPLICANT, MAILING ADDRESS, ZIP CODE, COUNTY (APPLICANT IS N.C. BUSINESS, INDUSTRY, OR TRADE ORGANIZATION)

SOLECTRON TECH NOTaOGY. I N C . P.O. BOX 5 6 2 1 4 8 6900 MALLARD CREEK BQaD CHARLOTTE, NC 28256-2148 CHARLOTTE, NC 28262

ME CKLENBURG

BRIEF ONE- OR TWO-SENTENCE DESCRDPTION OF PROJECT: IMPLEMENT A NO-CLEAN VOC-FREE PROJECT TO REDUCE WASTE WATER TREATMENT SLUDGES

-S. PROJECT TO ADDRESS SOLDER PASTES, FLUXES, SOLDER WIRE I N ALL

PHASES OF THE PRINTED CIRCUIT BOARD ASSEMBLY P R O C F U Q ~ T NEEDED FOR U VE SOLDERING OPERATIONS INCLUDE PURCHASING 4 SPRAY FLUXERS OVER THE NEXT YEAR TO TWO YEARS, BASED ON CUSTOMER ACCEPTANCE AND IMPLEMENTATION.

CERTIFICATION:

I hereby certify that the information provided in this grant proposal is true and accurate to the best of my knowledge.

Note: Complete application includes this form and a 2- to-4-page written proposal following the format outlined on the Request for Proposals.

Mail complete application by May 15, 1995, to:

Program Manager Pollution Prevention Program Ofice of Waste Reduction

Post Of f i e Box 29569 Raleigh, NC 27626-9569

Page 3 of 4

Solectron Technology, Inc. - Charlotte, NC No-CleanNOC-Free Project

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Solectron Technology Incorporated, located in Charlotte, is a contract assembler of printed circuit boards. Solectron Technology has been in operation at the present facility since 1992 and presently employs about 520 employees and up to 200 contract employees work in our facility. Hours of operation are normally three shifts, 5 days a week.

In the past 3 years Solectron Technology has grown rapidly and has recently acquired several large contracts. With our business growing rapidly, we are constantly looking for ways to reduce our waste generated, hazardous and non-hazardous, through technical improvements, training, and recycling. During the past year, we generated over 3200 pounds of hazardous waste flux (DO0 UDO02) and emitted over 2 1.15 tons of VOC’s into the atmosphere. With production to dramatically increase, we need to control and/or eliminate the total pollutants generated from our solder pastes, fluxes, and isopropanol use.

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The No-CleanNOC Free Project is to be implemented in the next couple of months. The spray fluxers will be placed at the beginning of the wave solder machine operations. The spray fluxers will replace the present foam bath that the printed circuit board must past over to clean the board. A separate hood with high air velocity must be installed with each spray fluxer. The hood will help capture escaping VaporsAiquids. The speed of the conveyor, amount of spray, width and length of boards, and other production parameters must be programmed into the spray fluxer’s main control panel to help reduce flux consumption. Installation and setup will take about 24 hours and during this time, no production will be run on the wave solder’machines. The fluxes will also change with 1/3 of the spray fluxers to use a VOC free flux, 1/3 of the spray fluxers to use a No-clean flux which should reduce waste water treatment slu ge, and 1/3 will use a flux that contains VOC’s.

Total project costs is estimated at $250,000 plus. All costs to be covered by Solectron Technology except those items mentioned in which the grant money would be applied. Our completion time table is for the following year to have as many of our customers moving toward a No-CleanNOC-Free products. Equipment implementation will be purchased and implemented over the next two years. Substitution of No-CleanNOC-Free chemicals for the present chemicals in the process are scheduled to begin with in the next 6 to 8 months. Estimated implementation time and estimated costs are as follows: 0 Air permits updated to show additional chemical changedadditions and additional

equipment to be brought in house. (next 2 weeks; est. costs: $3,000) Chemicals reviewed to ensure proper waste streams set up prior to generation. (next 2 weeks; est. costs: $500) Training on chemical handling, use, storage, labeling, etc. provided to employees, management, etc. (next 2-3 months; est. costs: $1,000)

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Training on hand soldering with new fluxes and inspection for common problems associated with new fluxes. ($5,000) Purchase and begin use (after debug) of No-Clean solder paste on some printed circuit board assemblies. (estimated time next 3 months and forward as customer accepts new technology) Perform industrial air sampling to ensure no additional personal protective equipment is needed. (estimated costs: $2,000) Purchase and install spray fluxers. (2 within next 6 months at about $42,000 a piece; additional 2 within the next year or two at about $42,000 each; Grant money to be applied $10,000 per flux sprayer as purchased and installed up to $20,000 iotal.) Test solder wires for compatibility with No-CleanNOC-Free fluxes. Once acceptable, order for stock the acceptable hand soldering wire. (next 2-3 months) Purchase No-CleanNOC-Free fluxes to use with spray fluxers. Work on debugging soldering problems, bridging problems, etc. (est. one process engineer 6 months to one year for project alone. Possibly 2 process engineers if the project is accelerated due to customer demands, business expansion, etc. Est. salary costs: $42,000-68,000 /engineer) Additional costs would be involved are: Project Engineer’s time to develop MPI for IS0 9000 requirements and production problems; Business Development in selling future and present customers on the No-CleanNOC-Free processes for their products; Purchasing Department acquiring additional chemicals, parts, and re-stock limits; Process Engineer to set up maintenance procedures and debug system with new products as added to production flow; Safety Engineer to set up specific lockouthagout procedures, MSDS training for effected employees, special chemical handling procedures, personal protective equipment needs reviewed; Human Resources to recruit for additional engineering support; Facility Department in ensuring all necessary power, ventilation, and layouts are acceptable to various building and life safety codes; and Finance Department setting up new accounts payable for various suppliers, budgeting and planning for technological changes and upgrades.

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The benefits that are results or expected benefits are shown vary. The benefits are broken down into the reduction in air emission in going to a VOC Free flux and implementing the spray fluxers to all other benefits derived from No-Clean fluxes. The spray fluxers will help reduce the emissions of VOC’s into the atmosphere by:

only operating when a board goes over the sprayers reducing VOC emissions from an open container used with the foam bath, sprays a width and length equal to that of the printed circuit board, will not require the bath or holding tank to be changed every three days due to contamination, farther away from the heat sources causing less VOC to be driven off,


! requiring no adjustments to specific gravity, which means no flux or isopropanol will be

reduction in material handling and chances for spills or leaks to occur, and reduction in actual chemicals needed to run the same number of printed circuit boards due to the coverage needed on the boards are thinner.

4 added during operations, !.

The reduction in air emissions from VOC's will vary based on customer acceptance of No- CleanNoc-Free pastes and fluxes. A goal we are reaching for is at least one line to be completely No-CleanNOC-Free and at least 2 additional lines with that capability by next year. Additional benefits to be received are:

reduction in hazardous liquid waste (approximately 15 gallons every 3 days) from changing contaminated flux, the reduction in costs due to maintenance on water washers, and waste water treatment system (parts replacement, labor, etc.) reduced time to calibrate and/or measure the specific gravity in wave solder operations, reduction in fire potential, reduction in waste water treatment sludge from reduced board washing (paste and post wave) as well as reduction in cleaning of flux containers, reduction in DI water consumption, and reduction in chemical handling.

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1.M. Number or Social Security Number 56-1782257

N.C . Department of Environment, Health, and Natural Resources Division of General Services

Check if Applicable 0 €"on-Profit X Incorporated

AGREEMENT INFORMATION

1 . PARTIES TO THIS AGREEMENT:

Contact Person Norma M w h y

Telephone Number (91 91-571-4 100

FOR DEHNR USE ONLY 1

Contact Person Mark Jalilian

Vendor Number

Telephone Number (704) 598-3300

, -n s 10.000.00 Federaf State Contractor Other Special ; s s 10.000.00 s s s

Address (to which checks will be mailed) P.O. Box 562148, Charlotte, NC 28256-2148

Please check one of the following: 0 minorityowned 0 handicapped owned I 0 womanowned X none of the above

No-CleadVOC Free Printed C i r c u l l e m b I v

3. PURPOSE OF AGREEMENT: Demonstrate a no-clean. VOC-fiee Drocess for its ptrr 'nted circuit boa rd assemblv weration.

. . 2. TITLE OF AGREEMENT:

4.TIMEPERIODOFAGREEMXNT: BeginningDate 9 / 1 / 95-1 Ending Date 6 1-30-1-96- Month Day Year Month Day Year

5. AGREEMENT STATUS: X New 0 Continuing Revised Year of Initial Agreement FY 95-96

6. NEED STATEMENT: Source-spec& waste reduction technolw-for i n w i e s

. . . . 7. JUSTIFICATION: Dgkation o f waste reductron tec tu jxgs have to tekeplace w r t b m i a l s e t t l n P h n o l o p r shr to ofher rndatrres.

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DEHNR 2500 (Revised 3/95)

of 1 N.C. Department of Enviromnent, Health, and Natural Resources

Division of General Senices

CONTRACT BUDGET @

9 I 1 195- Waste Reduct ioflollution Pre vention C o n t r a c t N o . u & b 2 5 Contract System No. L Effective Date DivisiodSectiodProgram

6 I 3 0 I 96 For Fiscal Year 3 9 6 Purchase Order No. ' Termination Date

Contactor: Solectron Technoloev. Inc. purpose: -ee V Grant

Project Director:-&.& Ja lilian Total Budget: $ 10.000.00

ITEM DESCFUPTION General Contracted services according to the contract scope of work

1615 5369896152 FUND OBJ RCC PROG

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ITEM NO.

CONTRACTOR AMOUNT -

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

Contactor Authorized Official DivisiodSection Head

DEHNR CONTRACT

AMOUNT $10,000 00

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

DEHNR 2482 (Revised 3/95) General Services Division (Review 3/97)

1 I ' CONTRACT NO. & - 6 0 2 5

CONTRACTOR'S FEDERAL I.D. OR SOCIAL SECURITY NO.

56-1 702257

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STATE OF NORTH CAROLINA

COUNTY OF WAKE

THIS AGREEMENT, made and entered into this day of September, - 1995, by and between Solectron Technology, Inc., hereinafter referred to as "CONTRACTOR", and North Carolina Department of Environment, Health, and Natural Resources, hereinafter referred to as "DEPARTMENT";

- W l T N -------- E S S E T H :

THAT WHEREAS, the CONTRACTOR has submitted to the DEPARTMENT a proposal for the performance of certaict kechnical -or professional services; and

WHEREAS, the DEPARTMENT desires to enter into a contract with the CONTRACTOR to perform the services set out in the proposal;

NOW, THEREFORE, for and in consideration of the mutual promises to each other, as hereinafter set forth, the parties hereto do mutually agree as follows:

1. The CONTRACTOR hereby agrees to, in a manner satisfactory to the DEPARTMENT, support the implementation of a 1995 Challenge Grant Project as outlined in "ATTACHMENT A" which is incorporated as a part of this contract.

2. The DEPARTMENT hereby agrees to pay the CONTRACTOR a sum of money not to exceed TEN THOUSAND DOLLARS ($10,000.00) said sum to be full and complete compensation for services rendered under this agreement,

(a) Payment for services will be made upon receipt of an expenditure report-(D-EHNR -2481) or invoice from the CONTRACTOR documenting ,/ - -- the costs incurred in the performance of work under this contract.

(b) Expenditure reports/invoices are to be submitted to the Contract Administrator at least quarterly. Final expenditure reports/invoices must be received by the DEPARTMENT within 45 days after the end of the contract period. /

d (c) Amended or corrected expenditure reports/invoices must 'be received by the Office of the Controller within six months after the end of the eontract period. Expenditure reports/invoices received more than six months after the end of the contract period will be returned without action.

The CONTRACTOR represents that he has, or Will secure at his

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own expense, all personnel required in performing the services under this agreement. Such personnel shall not be employees of the DEPARTMENT.

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CONTRACT NO. - 6 0 2 5 4. The CONTRACTOR shall not substitute key personnel assigned

to the performance of this contract without prior approval by the Contract Administrator. The following individual is designated key personnel for purposes of this contract: Mark Jalilian.

5. None of the work to be performed under this contract which involves the specialized skill or expertise of the CONTRACTOR or his employees shall be subcontracted without prior approval of the Contract Administrator. In the event the CONTRACTOR subcontracts for any or all of the services or activities covered by this contract: (a) The CONTRACTOR is not relieved of any of the duties and responsibilities provided in this contract; (b) The subcontractor agrees to abide by the standards contained herein or to provide such information as to allow the CONTRACTOR to comply with these standards, and; (c) The subcontractor agrees to allow state and federal authorized representatives access to any records pertinent to its role as a subcontractor.

6. The services of the CONTRACTOR are to commence on the Ist day of September, 1995, and shall be undertaken and completed in such sequence as to assure their expeditious completion in the light of the purposes of this agreement, but in any event, all of the services required hereunder shall be completed by the 30th day of June, 1996.

7. The CONTRACTOR shall assure that no person, solely on the grounds of race, color, age, religion, sex or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity covered by this agreement.

8. The CONTRACTOR shall assure that no otherwise qualified handicapped individual, solely by reason of hidher handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity covered by this agreement.

9. The Americans with Disabilities Act I990 (ADA) makes it unlawful to discriminate in employment against a qualified individual with a disability and outlaws discrimination against individuals with disabilities in State and local government services and public accommodations. The CONTRACTOR certifies that it and its principals and subcontractors will comply with regulations in A.D.A. Title I (Employment), Title II (Public Services), and Title Ill (Public Accommodations) in fulfilling the obligations under this agreement.

1

‘9 timely and proper manner the obligations under this agreement, the DEPARTMENT shall there upon have the right to terminate this contract by giving written notice to the CONTRACTOR of such termination and specifying the reason thereof and the effective date thereof. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports prepared by the CONTRACTOR shall, at the option of the DEPARTMENT, become its property, and

10. If, through any cause, the CONTRACTOR shall fail to fulfill in

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CONTRACT NO. W - 0 2 5 the CONTRACTOR shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. The CONTRACTOR shall not be relieved of liability to the DEPARTMENT for damages sustained by the DEPARTMENT by virtue of any breach of this agreement, and the DEPARTMENT may withhold payment to the CONTRACTOR for the purpose of set off until such time as the exact amount of damages due the DEPARTMENT from such breach can be determined.

11. This contract may be terminated by either party upon thirty (30) days notice given in writing by one party to the other. If the contract is terminated, all finished or unfinished documents and other materials shall, at the option of the DEPARTMENT, become its property. Termination of the contract by the CONTRACTOR shall not prohibit the DEPARTMENT from seeking remedy for additional costs consequential to the termination, which are incurred by the DEPARTMENT. If the contract is terminated by the DEPARTMENT as provided herein, the CONTRACTOR will be paid in an amount which bears the same ratio to the total compensation as the services actually performed bear to the total services of the CONTRACTOR covered by this agreement; for costs of work performed by subcontractors for the CONTRACTOR provided that such subcontracts have been approved as provided herein; or for each full day of services performed where compensation is based on each full day of services performed, less payment of compensation previously made. The CONTRACTOR shall repay to the DEPARTMENT any compensation he has received which is in excess of the payment to which he is entitled herein.

12. The parties to this contract agree and understand that the payment of the sums specified in this contract is dependent and contingent upon and subject to the appropriation, allocation, and availability of funds for this purpose to the DEPARTMENT.

13. CONTRACTOR receiving $25,000 or more from the DEPARTMENT within any fiscal year is required to have basic financial statements, for that fiscal year, prepared in accordance with generally accepted accounting principles. These basic financial statements should be audited in conformity with generally accepted auditing standards, the standards for financial audits contained in Government Auditinq Standards issued by the Comptroller General of the United States, and (if applicable) the requirements of either Office of Management Budget Circular (OM6 Circular A-I28 for state and local governments or OM6 Circular A-I33 for institutions of higher education and other nonprofit institutions). The audit report shall be forwarded to Office of the Controller - Budget and Analysis section within six

J, months after your fiscal year end. If less than $25,000 is received by the grantee :from the DEPARTMENT but $25,000 or more is received in a total from one or more 'state agencies or state universities the audit report in the format described above shall be sent to the Office of the State Auditor. Also, a corrective action plan for any audit findings and recommendations should be submitted along with the audit report or within the period specified by the applicable OMB Circular.

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14. The DEPARTMENT may, from time to time, request changes in the scope of the services of the CONTRACTOR to be performed under this agreement. Such changes, including any increase or decrease in the amount of the CONTRACTOR'S compensation, which are mutually agreed upon by and between the CONTRACTOR and the DEPARTMENT, shall be incorporated in written amendments to this contract.

15. Any information, data, instruments, documents studies or reports given to or prepared or assembled by the CONTRACTOR under this agreement shall be kept as confidential and not divulged or made available to any individual or organization without the prior written approval of the DEPARTMENT.

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16. The filing of a petition in bankruptcy or insolvency by or against the CONTRACTOR shall terminate this agreement.

17. The CONTRACTOR shall not assign or transfer any interest in this agreement.

18. part under this agreement shall be the subject of an application for copyright by or on behalf of the CONTRACTOR.

No reports, maps or other documents produced in whole or in

19. It is agreed between the parties hereto that the place of this contract, its situs and forum, shall be Wake County, North Carolina, and in said County and State shall all matters, whether sounding in contract or tort relating to the validity, construction, interpretation and enforcement of this agreement, be determined.

20. The CONTRACTOR agrees that the State may have the right to audit the records of the CONTRACTOR pertaining to this contract both during performance and for 36 months after completion or termination. The CONTRACTOR must retain all records relating to this contract and allow employees or agents of the DEPARTMENT to inspect such records during the period of time set out herein.

The CONTRACTOR agrees that he shall be responsible for the proper custody and care of any State owned property furnished him for use in connection with the performance of his contract and will reimburse the State for its loss or damage.

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22. The CONTRACTOR certifies that he is in compliance with , "Attachment I" Assurances-Non Construction Proqrams. ,

4 23. Norma Murohv is designated as the Contract Administrator (project coordinator) for the State. However, any changes in the scope of the contract which will increase or decrease the CONTRACTOR'S compensation shall not be effective until they have been approved by the DEPARTMENT Head or Authorized Agent.

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IN WITNESS WHEREOF, the CONTRACTOR and the DEPARTMENT have executed this agreement in duplicate originals, one of which is retained by each of the parties, the day and year first above written.

CONTRACTOR NORTH CAROLINA DEPARTMENT OF ENVIRONMENT, HEALTH AND

NATURAL RESOURCES

B. Howes, Secretary BY B &4 /&6ua ./

ContractoKSignature

Mark Jalilian Director Typed Name . Div. of General $cpj jzs

4 h4 Io- a w 4 % + k Debartment Head's Signature

Title ai d Lr///qehy or Authorized Agent (Owner, Partner, or Cor6. Pres. or Vice-Pres. only)

WITNESS: WITNESS:

LE- ( .

Signatur 4 i g nature

Approved as to Form:

Attorney General of North Carolina

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Attachment R SCOPE OF WORK -

This Scope of Work will serve as an agreement between Solectron Technology, Inc. and the North Carolina Office of Waste Reduction to support implementation of a 1995 Challenge Grant Project. As specified in the original challenge grant proposal, Solectron proposes to implement a No-CleanNOC Free Project in its printed circuit board assembly plant. The project includes purchasing, installing, and operating 2 flux sprayers and the purchase and use of no-cleanNOC- free fluxes in addition to equipment testing and employee training. This Scope of Work outlines the tasks involved in project implementation. Solectron must document. and maintain on-going records of all phases of the project. This documentation should serve aS support information in preparation of an interim and final project report. The included tasks are as follows:

1.

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Purchase, install, and test necessary equipment.

2.

3.

4.

Conduct training 'for production and maintenance personnel.

Make necessary changes to process control equipment.

Operate the installed equipment for a sufficient period to obtain representative operational data on cost, product quality, and waste reduction.

:. . - ___ . .. . 5. Submit a mid-term progress report discussing work completed to. date, financial

information, and any changes that are necessary to improve to pfoject;'@ue January 31, 199--, .

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6. On or before May 30,1996 submit a final report which includes a technical, economic, and environmental evaluation of the project. The final project documentation should include a brief project summary and a final report as outlined below:

Project S-aFe: one to two pages briefly stating project background and objectives, waste reduced, advantages, disadvantages, total cost savings, and payback period.

a a a

a

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7.

Company background information, Introduction to the problem, Technical description of the existing process, how the process was modified, what new equipment was needed, and training requirements, Assessment of waste reduced during project period, and ~ u a l cost savings, Address advantages and disadvantages of proj ect implementation including effects on product quality, Recommendations for further study or testing summary

Provide one bound and one unbound, photo reproducible copy of the final report.

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n Attachment 1 SCOPE OF WORK

This Scope of Work will serve as an agreement between Solectron Technology, Inc. and the North Carolina Office of Waste Reduction to support implementation of a 1995 Challenge Grant Project. As specified in the original challenge grant proposal, Solectron proposes to implement a No-CleanNOC Free Project in its printed circuit board assembly plant. The project includes purchasing, installing, and operating 2 flux sprayers and the purchase and use of no-clean/VOC- free fluxes in addition to equipment testing and employee training. This Scope of Work outlines the tasks involved in project implementation. Solectron must document and maintain on-going records of all phases of the project. This documentation should serve as support information in preparation of an interim and final project report. The included tasks are as follows:

1.

2.



3.

4.



Submit a mid-term progress report discussing work completed to date, financial information, and any changes that are necessary to improve to project. (Due January 31, 1996)

On or before May 30,1996 submit a final report which includes a technical, economic, and environmental evaluation of the project. The final project documentation should include a brief project summary and a fmal report as outlined below:

one to two pages briefly stating project background and objectives, waste reduced, advantages, disadvantages, total costsavings, and payback period.

5. ,

6.

Company background information, . Introduction to the problem, Technical description of the existing process, how the process was modified, what new equipment was needed, and training requirements, Assessment of waste reduced during project period, and arinual cost savings, Address advantages and disadvantages of project implementation including effects on product quality, Recommendations for further study or testing summary

7.: Provide one bound and one unbound, photo reproducible copy of the final report. 4

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N.C . Department of Environment, Health, and Natural Resources Division of General Services

Contract System No. _ _ _ _ - _ _ -

AGREEMENT INFORMATION Purchase Order No. -----

1. PARTIES TO THIS AGREEMENT:

I.=. Number or Social Security Number 56-1782257

A. Division Office of Waste Reduction Section Pollution Prevention Program Check if Applicable

0 l"on-Profit X Incorporated

Contact Person Norma Murphy

Telephone Number (919)-571-4100

B.

Contact Person Mark Jalilian

Telephone Number (704) 598-3300

Federal

s .

2. TITLE OF AGREEMENT: No-Clean/ VOC Free Printed (jrczrit Boa r d &e mbl v

3. PURPOSE OF AGREEMENT: Demo nstrate a no-clean. VOC-free p rocess fo r its minted circuit board assembly o perat ion.

State ' Contractor Other Special

s 10.000.00 s s s

4.TIMEPERIODOFAGREEMENT: BeginningDate 9 I 1 195-1 Ending Date 6 1-30-1-96- Month Day Year Month Day Year

5 . AGREEMENT STATUS: X New 0 Continuing 0 Revised Year of Initial Agreement FY 95-96

6. NEED STATEMENT: Source-specific waste reduction techno& for I 'ndwtries

7. JUSTIFICATION: waste re&on t e c w e s have to take dace within an in-for technology

" fer to othe rr 'ndustries.

S V H E A D : Fund 1615 OBJ 536989 PCC 6152 PROG

GENERAL SER VICES USE ONLY

PAYMENT SCHEDULE:

DEHNR 2500 (Revised 3/95) General Services (Review 3/97)

DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES AGREEMENT POLICY

The Secretary, Department of Environment, Health, and Natural Resources must approve all agreements including contracts involving the disbursement of funds. Only the SecretrJy of the Department may obligate the agency to a written ageement.

Divisions entering into agreements with other agencies must complete DEHNR 2500. One copy of DEHNR 2500 is to be prepared for each contract. DEHNR 2500 is to be prepared by the division responsible for negotiating the con’tract and is to be used as a cover for each contract submitted to the Division of General Services.

INSTRUCTIONS FOR COMPLETING AND ROUTING DEHNR 2500

PURPOSE:

PREPARATION:

DISPOSITION:

The blocks in the upper right hand portion of the form are for use by the Division of General Services for identification and control purposes.

Items 1-8 are completed by the divisiodsection for all agency agreements. Correspondence and payments will be mailed to the address shown in Item 1 .B. DEHNR Use only.

Contract Number-To be assigned by General Services.

Conlract System Number-To be assigned by Office of the Controller.

Vendor Number-To be assigned by Office of the Controller.

Item 1 (A)-Enter the Division and Section responsible for the agreement.

Item I @)-Identify the state agency. provider, private organization, etc., contracting with the Department. Enter the address, name and telephone number of a contact person within the designated organization. One of the items concerning minority-, women-, or handicapped-owned businesses must be checked.

Item 2-Enter the name of the agreement.

Item 3-Describe generally the purpose of the agreement, and refer whenever possible to the persons or conditions that will benefit from the agreement.

Item &List the beginning and ending dates of the agreement.

Item 5-Check the block which appropriately describes the status of the proposed agreement. If the agreement is a revision of a prior agreement, or a continuation of a prior agreement, enter the year the agreement was fmt initiated.

Item &State why this service is necessary and why it cannot be performed within the resources of the Deparrment.

Item 7-List potential contractors and state why this. specific contractor is being requested. Item P h e c k the appropriate box. Indicate in the space provided the total h d s to be disbursed when applicable.

General Services Use Only-Do not complete.

Copies of this agreement should be retained three (3) years or until audit requirements are satisfied.

Additional copies of this form may be ordered from: N.C. Department of Environment, Health, and Natural Resources Division of General Services P. 0. Box 27687

Courier 52-0 1-00

2

! Raleigh, NC 2761 1-7687 1

DEHNR 2500 (Revised 3/95) General Services (Review 3197)

.. ._ . ~. . . .

1 1 1 3 1 3 c.. '-1 3 -1 1 I 3 I J 1 1 J 1 1

9 I 1 I 9 5 Effective Date

N.C. Department of Enviromnent, Health, and Natural Resources Division of General Senices

CONTRACT BUDGET

Contract No. Waste ReductionPo1 lution Pre vention DivisiodSection/F'rogram

Contract System No.

For Fiscal Year 3 9 6 Purchase Order No.

Contactor: Solectron Technolw. Inc. Purposi: Pollut' ion Prevention Cha llenoe G r a a . .

Project Director:-llan Total Budget: $ 10.000.00

ITEM DESCRIPTION General Contracted services according to the contract scope of work

-5369896152 FUND ,* OBJ RCC PROG

ITEM NO.

CONTRACTOR AMOUNT I

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

DEHNR CONTRACT

AMOUNT $10,000 00

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ' I I I I I I I I I I I I I I

Contactor Authorized Official DivisiodSection Head Office of Controller


PURPOSE: This form has been developed for use by personnel responsible for reporting detailed expenditure information for use by the Office of the Controller. This form may be used by the contractor as an invoice. In that event, the Contractor Authorized Official or contractor fiscal officer must sign this form.

PREPARATION: (Type all Fields)

1 .

2.

3.

4.

5.

6 .

7.

8.

9.

10.

11.

12.

13.

14.

15.

Reporting Period

Page -of -

Fiscal Year

DivisiodSectiodProgam

Contract No.

Contract System No.

Purchase Order No.

Contractor

F'urpose

Project Director

Total Expenditure

Item Description

Item No.

Contractor Amount

DEHNR Contract Amount

Abbreviation of period, closing date of report; format MM/DD/YY.

Self-explanatory.

Fiscal year of contract as shown on the original contracr budget.

DivisiodSection/€'rogram name as shown on the original contract budget.

Enter number shown on original contract budget.



Name of contract recipient as shown on the original contract budget.

As shown on the original contract budget.

Self-explanatory.

Total of contract expenditures for this reporting period (include contractor expenditures).



Amount of expenditures from contractor funding for the indicated reporting period.

Amount of expenditures for a state funded item for the mdicated reporting period.

DISTRIBUTION:

DISPOSITION:

Submit according to reporting schedule included in the contract.

Retain for three (3) years after the termination date of the contract, or until pending audit requirements are satisfied.

Additional copies of this form may be ordered from: N.C. Department of Environment, Health, and Natural Resources Division of General Services P. 0. Box 27687 Raleigh, NC 2761 1-7687 Courier 52-0 1-00

_ .


1 n -1

Attachment 1

SCOPE OF WORK

3 This Scope of Work will serve as an agreement between Solectron Technology, Inc. and the North Carolina Office of Waste Reduction to support implementation of a 1995 Challenge Grant Project. As specified in the original challenge grant proposal, Solectron proposes to implement a No-CleanNOC Free Project in its printed circuit board assembly plant. The project includes purchasing, installing, and operating 2 flux sprayers and the purchase and use of no-cleanNOC- free fluxes in addition to equipment testing and employee training. This Scope of Work outlines the tasks involved in project implementation. Solectron must document and maintain on-going records of all phases of the project. This documentation should serve as support information in preparation of an interim and final project report. The included tasks are as follows:

1.

2.



3.

4.



Submit a mid-term progress report discussing work completed to date, financial information, and any changes that are necessary to improve to project. (Due January 31, 1996)

On or before May 30,1996 submit a final report which includes a technical, economic, and environmental evaluation of the project. The fmal project documentation should include a brief project summary and a final report as outlined below:

5 .

6.

t S- P w one to two pages briefly stating project background and objectives, waste reduced, advantages, disadvantages, total cost savings, and payback period.

Company background information, Introduction to the problem, Technical description of the existing process, how the process was modified, what new equipment was needed, and training requirements, Assessment of waste reduced during project period, and arinual cost savings, Address advantages and disadvantages of project implementation including effects on product quality, Recommendations for further study or testing summary

Provide one bound and one unbound, photo reproducible copy of the final report.

-

.-

i

i

For use by the Assistant Secretary’s Office

-1 c6h3 NORTH CAROLINA EPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES (EHNR)

Assistant Secretary for Administration

n by the Initiating Division) ection POI LUT ION PREVENTION PROGRAM

itle Manaaer. Pollution Prev. Proq;Telephone 919-571-4100

RANT (OR REVOLVING LOAN) AWARD FROM EHNR

Date 101 initiated 7/31/95 Source of GranVLoan Funds AporoDriations Grant Beginning Date 8/16/95 Grant Ending Date 6130196

Type Award

new X renewallcontinuation amendedhevised supplemental

(For Multi-Year Projects) This is year

Will future state funds be requested? Yes No X When? Purpose of Grant Award or Loan: TO PROVIDE NORTH CAROLINA BUSINESSES AND INDUSTRIES WITH FUNDS TO DEVELOP AND IMPLEMENT INNOVATIVE SOURCE REDUCTION AND RECYCLING DEMONSTRATION PROJECTS.

Date by which Division must have completed 101 8/6/95

Matchina Cha llenae Grant

of years. Employee Identification NO. (EIN#) (See Attached List)

GranVLoan Amount S 90.700.00 FUND 1615 OBJECT 536989 RCC 6152 PROG FY 95/96

REVIEWERS (Initiating Division must answer all questions in order to ascertain who does and does not need to review this action)

F!SCAL MANAGEMENT:

DIVISION OF COMPUTER SYSTEMS: Are computer or telecommunications hardware acquisitions involved or affected? YES- N O A . Are any software acquisitions and/or development involved? YES- NO X . Does this action affect the management of the EHNR or State government communications network? YES-NO X . Is this action a part of the planning process of the technical architecture for the automation of the department’s data and information processing systems? . YES- N O L . Will this action entail the need for technical training by Computer Systems? YES- N O X . Is interaction with SIPS and other vendors of computer hardware, software, telecommunications and related services in way any involved in this action?YES-NO X . CENTER FOR HEALTH & ENVIRONMENTAL STATISTICS: Will this action involve any statistical support services from

CHES? (Support services include assistance with statistical analysis, survey design or sampling, typesetting, data entry, access/use of existing health or other databases or changes in the Health Services Information System.) Y E S - N O L

O P I A N N I N G & ASSESSMENT: Is State Clearinghouse review required for this grant award? YES-NOJ

B G E N E R A L SERVICES: Will this action require a contract document as the vehicle to administer the proposal including the

, . disbursement of funds regardless of funding source? Y E S L N O - OOTHER -71 - - \ / p a t e 3 l>> ! f * ~ / s d - -A-:-:-,.\ &.\ ?., ,. :.+

SIGN-OFF -1

bq: r , + bJ3

--.I A. INITIATING DlVlSlOSJ DIRECTOR =!+ / -a9 0’12 w,., 3s

.-- 0

Approved for Administrative Review rl Review Waived n Assistan: Secretsry The methodology proposed for the gathering of statistical information is valid, andor 2) CHES is properly i n v o 9 d in the design and development of the proposal to carry out the expectations of CHES in the implementation stages. fl

7)

Pate Director, Center for Health & Env. Statistics I-] (Conditional Approval - See Comment)

The proposed acquisition of services or equipment is consistent with state and departmental policies and standards, the proposed acquisition of services and/or equipment is consistent with the division’s IRM plan currently on file with DCS, and the DCS staff has been appropriately involved in the planning and preparation of this request.

Pate Director, Division of Computer Systems 1-1 (Conditional Approval - See Comment)

Fiscal Management finds 1) that the grant award will meet audit requir ents and 2) that from a fiscal perspective the document . is appropriately defined as a grant award and it is not necessary for if o be defined as a,contract. ($tu 2 ,&&d Date Ikdkh?

3 r , Division of /f dFSc (Conditional Approval - See Comment)

r

The initiating division is aware of EHNR internal review and State Clearinghouse requirements for this grant award.

Date Director, Division of Planning & Assessment

(Conditional Approval - See Comment)

1)The contract proposal is consistent with state and department goals and policies (such as seeking services within state government or university system before advertising to the private sector), 2) DGS is alerted to and planning for the approaching workload, and 3) the paperwork processing of the contract is beguF'wherever po:r;ible.

Director, Division of General Servlces (Conditional Approval - Sce Comment)

OTHER: Please clearly state the significance of your signature in signing off on this document:

Date DIRECTOR

Assistant Secretary: Signed

Approved 1 r Denied n

A. E See Comments Recommend Approval Recommend Denial Oftice of the Secretary: Signed

Approved Denied See Comments

Date

COMMENTS

I

POLLUTION PREVENTION CHALLENGE GRANTS

Company/Fed. ID# County Purpose Amount ABB Power T&D Guilford Demonstrate powder coatings on non-cuductive fiberglass tubes as an alternative $15,000 Company to solvent-based spray coating.

Athol Corporation Granville 56-1 101738 Burlington Chemical Alamance Company. 56-0692 187

Hankison International Carteret Demonstrate a system to recycle wastewater from its metal cleaning and $15,000 5 1-0263 17 1

36-3 1000 18 Demonstrate a process to cryogenically separate PVC coating from fabric and to reuse the recovered PVC in the process. Demonstrate the use of a stress gene assay to develop less-toxic products for the textile industry. The technique will enable the company to determine specific raw materials that contribute to aquatic toxicity so that they can find substitutes or minimize their use.

pretreatment operation and to switch to a powder coating system from the

$15,000

$15,700

- .

current solvent based painting operation. Maple Springs Laundry Catawba Demonstrate the use of hydrogen peroxide in place of hypochlorite in a $20,000 56-0852135 commercial laundry operation.

Inc. manufacturing operation. Solectron Technology Mecklenburg Demonstrate a no-clean, VOC-free process for its printed circuit board $10,000

25060a.pdfGeneral Contracted services according to the contract scope of workFUND OBJ RCC PROG

i 1 solectron -1 · 1 i -1 i] 1 1 1 1 +i i j 1 :i 11 ;1 3 4 j i solectron project summary:...

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