Integrated Management System Handbook

Quality Management

Environmental Management

Corporate Social Responsibility

Quality Management | Environmental Management | Corporate Social Responsibility

Author Owner Version Date Status Page/Pages

Wally Walia Bernhard Wiehler - VP QM 4.0 29.10.2014 >Approved< 3 / 28

File Name: Integrated Management System Handbook.docx

Integrated Management System

Handbook

CONTENT:

1 GENERAL .................................................................................................................... 4

1.1 OBJECTIVES AND PURPOSE ..................................................................................... 4

1.2 SCOPE ..................................................................................................................... 4

1.3 Certifications ........................................................................................................... 5

2 QUALITY MANAGEMENT SYSTEM ................................................................................ 5

2.1 CUSTOMER FOCUS ................................................................................................... 6

2.2 MANAGEMENT RESPONSIBILITY ............................................................................. 6

2.3 SYSTEM ORIENTED MANAGEMENT ......................................................................... 10

2.4 PROCESS MANAGEMENT ........................................................................................ 11

2.5 RESOURCE MANAGEMENT ...................................................................................... 12

2.6 SUPPLIER LIFE CYCLE MANAGEMENT .................................................................... 12

2.7 MEASUREMENT, ANALYSIS AND IMPROVEMENT .................................................... 13

2.8 CONTINUOUS IMPROVEMENT ................................................................................ 16

3 CORE PROCESSES ..................................................................................................... 17

3.1 PRODUCT LIFE CYCLE PROCESS ............................................................................. 17

3.2 BUSINESS LIFE CYCLE PROCESS ............................................................................ 18

3.3 PRODUCT ORDER AND FULFILLMENT PROCESS ..................................................... 19

4 ENVIRONMENTAL / SAFETY MANAGEMENT PROGRAM ............................................. 20

5 CORPORATE SOCIAL RESPONSIBILITY (CSR) & SUSTAINABILITY ........................... 22

Cutting Carbon Emissions ................................................................................................. 23

COMMITTED TO OUR EMPLOYEES ..................................................................................... 24

We Act as One .................................................................................................................. 26

6 REFERENCES ............................................................................................................ 26

VALIDATION ..................................................................................................................... 28

7 DOCUMENT HISTORY ............................................................................................... 28

RELEASE ........................................................................................................................... 28






1 GENERAL

1.1 OBJECTIVES AND PURPOSE

Purpose This handbook describes ADVA Optical Networkings integrated

Management System combining the cross functional quality management

system (QMS) and the environmental management system (EMS) in

reference to international standards and key organizational processes. It

also provides ADVA Optical Networkings commitment to Corporate Social

Responsibility (CSR) program.

The EMS and CSR programs are based on the determined and certified

quality management system (QMS) using same structure and core

elements. Therefore only specifics of EMS and CSR beyond the QMS are

described in particular chapters of this document.

The purpose of this Integrated Management System is to ensure product

and service quality continues to meet the highest standards demanded by

the organization and expected by its customers and other external

interested parties, e.g. communities.

Furthermore it describes the quality requirements for managers, process

owners and eventually for all ADVA Optical Networking employees to

adhere to.

Goal / Mission

statement

Be a trusted partner and enable ADVA Optical Networking

to remain a Quality Leader in the marketplace.

1.2 SCOPE

Details on validity This handbook describes (together with all relevant and appropriate

process documents and referenced policies, procedures, process maps,

checklists, instructions) the ADVA Optical Networking Integrated

Management System.

It is the basis for organizational controls and consequently is valid for all

sites of ADVA Optical Networking.

Limitation The Management System as a whole and thus this handbook is limited to

aspects with regards to

Quality Management System (QMS) TL9000 / ISO 9001

Environmental Management System (EMS)

ISO 14001

Corporate Social Responsibility (CSR) EICC

and corresponding legal regulations and requirements of relevant

International Standards.






1.3 Certifications

Certificates ADVA Optical Networking is certified for ISO9001, TL9000 and ISO14001

for all its locations, globally.

The scope of ADVA Optical Networking TL9000 registration involves

the marketing, service, design, testing, delivery, installation, training, and

management of subcontractors of optical networking equipment and

software.

The scope of ADVA Optical Networking ISO 14001 registration

involves all sites globally.

All activities as described in this manual are applicable to all products and

services designed, manufactured and subsequently delivered by ADVA

Optical Networking.

The TL9000 product codes applicable are:

3.2.2.1.2.2 (for WDM),

1.2.9.3 (for Ethernet Access), and

4.2.2 (for NMS)

2 QUALITY MANAGEMENT SYSTEM

Quality System

Overview

ADVA Optical Networking quality system is built around the 8 Quality

Management principles shown below and described in the following:

Involvement of People/all parties (stakeholders)

Empowered employees - people at all levels are the essence of an organization;enable their abilities by full involvement

Planned Development/Training

Employee Performance/Recognition

Communication rules

Measurements/ Factual approach to decision making

Measure & analyze process and product data

Maintain & control monitoring and measuring devices

Perform Root Cause Analysis

Make decisions & take actions based on real, measureable results (face the brutal facts)

Mutual beneficial supplier relationships

a mutually beneficial relationship enhances the ability to create value

(win-win).

System oriented management (organization, system of processes) Identify, understand and manage interrelated processes

as a system (process landscape)

Established standards ISO9001/TL9000/ISO14001

Management Responsibility/ Senior Executive Leadership

Strategic Business & Quality Planning

Regular/Frequent Communication to customers & employees

Regular review of progress

Directing continuous improvements

Establish unity or purpose and organizational direction

create and maintain the internal environment in order to achieve

the organizations objectives

Process Management Process approach (SIPOC)

Process Landscape - core processes

- enabler/support processes- ownerships

Continuous Improvement

should be

a permanent objectiveof the organization

everybodys aim

Customer Focus/ orientation

Affects entire organization

Measure CSAT/Loyalty and acting on results

Manage customer relationship

Understand current and future needs

Meet customer requirements

Strive to exceed expectations

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8






2.1 CUSTOMER FOCUS

Customer

satisfaction

ADVA Optical Networking

continually strives to improve its

responsiveness to its customers,

to anticipate customer

requirements, and to provide

world class products and services.

To succeed these challenges,

customer inquiries for our

products and services are

scrutinized very carefully to make

sure that customer requirements

and expectation are fully and

correctly understood.

Customer responses are managed through the Customer Satisfaction

(CSAT) process, incl. annual surveys and the Continual Improvement

processes. Data obtained are analyzed to identify product and process

improvement initiatives. Upon completion, customers are informed of the

progress made as a result of their feedback.

2.2 MANAGEMENT RESPONSIBILITY

Top down

responsibility

Top management is responsible for defining the overall company strategy

and strategic goals. These goals are cascaded down to all functional

areas. Top management is also responsible for identifying and providing

adequate resources to achieve these goals. Top management regularly

communicates, to the organization, on the achievements of the company

results as well as the importance of meeting customer and regulatory

requirements.






Organizational

Responsibility

Functional responsibilities and interrelationships fundamentally are

defined through business processes and integrated process landscape as

well as organizational charts, job descriptions, corporate policies, and key

system procedures.

Functional managers are responsible to ensure all members of their team

understand corporate goals and objectives, the scope of the quality and

environmental system, and the role of their team within that system.

The VP QM is appointed to be the QM Representative for ADVA Optical

Networking, globally.

Management

System

Responsibility

The main goal of QM department is to understand and to meet/exceed

customer expectations and is inherent to all business processes by

concentrating on the avoidance rather than just correcting of faults with

a quality management system that ensures monitoring of all processes.

Quality Management System (QMS) team is responsible for ensuring the

quality system, environment system is established, implemented, and

maintained per the goals and objectives set by the executive team, and in

accordance with ISO 9001, TL9000 and ISO14001.

The QM QMS team coordinates the performance of the integrated quality,

environment management system, including our external partners who

share in its efforts to excel in quality, environmental, and CSR aspects.

Management

Business Reviews

A global top management team (ADVA Engine) regularly reviews ADVA

Optical Networkings overall performance as part of the internal

Management Business Reviews, especially focusing on the Integrated

Management System.

Data are collected and assessed

from different functional areas

and processes. Results are

evaluated against established

corporate objectives. Such

periodic reviews are intended to

determine whether the data is

representative of a functional

Management system. Data used

for the review includes: metrics,

results of internal audits and process assessments, continual

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improvement activities, business changes as well as corporate initiatives

and programs.

This review of the Management System ensures its suitability, accuracy,

and relevance. Recommendations for improvements are presented to the

Global Management Team (GMT) for discussion and approval. Derived

action items are assigned to appropriate teams and support continual

improvement objectives as well as customer and employee satisfaction.

Meeting minutes are used to communicate the effectiveness of our

Management System and to follow-up improvement progress.

Quality Planning Quality Planning is a systematic process for designing and developing new

products, services and processes that ensure customer needs are met.

Characteristics determining the quality

of ADVA Optical Networking products

and services are translated into

requirements and specifications for

internal projects, processes and

service provisions / plan-do-check-act

(PDCA) cycle.

A systematic approach to Quality

Planning steps include:

Quality Planning for R&D

projects.

Creating processes to design goods and services to meet needs of

its stakeholders (internal & external) by understanding what the

customer needs are, and then design products or services that

meet those needs.

Creating processes to control quality. Once designed, these

products and services are produced to ensure compliance to the

design criteria.

Creating a systematic approach for improving continuously

through process audits and process assessments to discover

weaknesses in the processes and remedied them.

Creating a function to ensure we continue to do these things listed

above.

Also refer to chapter 2.8 on Continuous Improvement.

Quality Gates Quality Assurance & Monitoring is implemented in a 3-phase approach:






MANAGEMENT

SYSTEM POLICY

Based on its nature as an integrated management system, the

MANAGEMENT SYSTEM POLICY of ADVA Optical Networking combines

three aspects:

Figure 1: QUALITY MANAGEMENT, ENVIRONMENTAL MANAGEMENT and

CORPORATE SOCIAL RESPONSIBILITY






2.3 SYSTEM ORIENTED MANAGEMENT

Document

Management

CONTROLLED DOCUMENTS

The integrated QMS/EMS handbook, asociated processes/procedures,

work instructions, policies and references are controlled documents in

accordance with the Document Management process. Changes to these

documents are maintained under revision control and require approvals

as the original documents. Changes to this QMS/EMS handbook require

CEO approval.

Process

Management

ADVA Optical Networkings Integrated

Management System is process oriented

structured in accordance to ISO 9001,

TL9000 and ISO14001 requirements. It is

divided in main, sub-processes and

supporting processes. Appropriate

supporting documents are linked and well

referenced. Different process map layers

will lead you to the needed process and/or

document level.

Primary goal of the Integrated Management System is to reach highest

level of customer satisfaction by maximization of resource protection and

in being compliant with the relevant International Standards as well as all

legal requirements, e.g. on environment and security.

Process

Landscape

The Process Landscape provides an overview of the Integrated

Management System, the level of integration and the corresponding

system documentation:

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UNCONTROLLED DOCUMENTS

As defined and described in the Document

Management process, printed copies of any

documents are considered uncontrolled.

Control copies are maintained in electronic

form, through Document Management

SharePoint (DMS) by QM.

CONTROL OF RECORDS

Records required in support of the Management System are identified and

maintained by the appropriate teams. Records are stored and maintained

in a manner that is readily accessible and minimizes deterioration,

damage, or loss. Mostly, the records are maintained electronically with

the appropriate security and/or network backups. After the minimum

retention period, records may be stored at an off-site location or

destroyed.

2.4 PROCESS MANAGEMENT

Process

Structure

The process landscape is structured by

Core Processes

Sub-processes

Support Processes

Supporting Documents

(i.e. policies, guidelines, instructions, forms, etc.)

Process

performance

ADVA Optical Networking applies suitable methods for monitoring and,

where applicable, measurement of our business processes. These

methods demonstrate the ability of the processes to achieve planned

results. When planned results are not achieved, correction and corrective

action is taken, as appropriate, to ensure conformity of the process.

Process improvement initiatives may be from a number of assessment

and evaluative activities, for example:

Customer assessment of our quality system

Customer Satisfaction survey results

Management directives in Management Reviews

Internal quality audits

Internal process assessments

Review of metrics and trends; number of internal generated

defects by release

Other self-assessments

Post-assessment of project reviews.







Business Process

Management

ADVA Optical Networkings Process Model is based on the SIPOC

(supplierinputprocessoutputcustomer) principle.

Details especially on Roles and Responsibilities of Process Management

are defined in the

Business Process Management Internal Standard.

2.5 RESOURCE MANAGEMENT

Allocation Resources are allocated against forecasted requirements and are

reviewed and supplemented where necessary. Annually part of the

budgeting exercise, the management team establishes the corporate

business objectives, including quality goals and customer requirements,

and evaluates the resources required to meet stated objectives.

Human Resources All employees are hired based on the

defined qualifications for a position.

Functional managers are responsible for

reviewing employees training and resource

needs as well as identifying where

additional training, support, tools, or

resources may be required. Training

records are part of employees personnel

records maintained by the Human

Resources department. Semi-annual reviews and goal setting, are the

basis for evaluating the competence and performance of all employees.

ADVA Optical Networking University program provides its employees the

opportunity for development and constant broadening of knowledge. The

training classes are developed in accordance with the Performance

Appraisal and Development Plans prepared by the manager and employee

at the time of performance reviews. These training courses include but

are not limited to internal and external, on-the-job/cross-site training,

classroom style courses, computer-based training and individual or group

training/activities.

The effectiveness of a training program is judged by observing

improvement in job performance and/or product quality. Records of

formal training are maintained, by HR and kept on file as part of the

employees personal training record.

2.6 SUPPLIER LIFE CYCLE MANAGEMENT

SLM processes The Supplier Life Cycle Management (SLM) covers the rules,

responsibilities and processes defining all activities to be performed in our

interactions with Suppliers and Contract Manufacturers.

It describes an integrated set of processes from strategic and operational

perspective:







1. Commodity Management

Process Strategic SLM

2. Supplier Life Cycle Processes

(SLCP) Operational SLM

(E2E Supplier / Manufacturer

Lifecycle)

3. Request for Quote (RFQ)

processes Operational SLM

(Supplier prices / Contract Manufacturer prices / cost updates)

The Commodity Management Process defines the commodity strategy

and the supplier strategy on a yearly basic to have a strategic direction

defined for the operational SLM processes.

The Supplier Life Cycle Processes (SLCP) consider 5 sub processes

related to the overall life cycle phases of a Supplier and/or Manufacturer:

The Request for Quote (RFQ) processes describes the methods and

procedures for the:

o Component price updates for all materials negotiated by ADVA Optical

Networking for internal purchasing or purchasing by our EMS partners

(RFQ Supplier)

o Cost calculation updates of products manufactured by our EMS

partners based on ADVA Optical Networking negotiated prices

(RFQ EMS).

2.7 MEASUREMENT, ANALYSIS AND IMPROVEMENT

General

requirements

Where possible, decision making is based on facts gathered through

measurement and analysis. For that our measurement and analysis

processes are designed so those near the sources of information can

make decisions independent of the organizational hierarchy.

Measurements are made of the following:

Customer satisfaction

Employee satisfaction

Product characteristics

Process performance

Achievement of goals and objectives

Supplier performance

Financial results

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Monitoring &

measurement of

products

We continually measure and monitor the characteristics of the products

to verify that product requirements have been met. This is carried out at

appropriate stages of the product realization process in accordance with

planned arrangements. Evidence of conformity with the acceptance

criteria is maintained. Records indicate the person(s) authorizing release

of product.

Product improvement initiatives can result from a number of evaluative

activities, for example:

Failure and Root Cause Analysis of customer reported product

defects or non-conformances (Field performance as well as Service

performance data analysis)

Review of metrics and trends; TL9000 metrics

Management directives in Management Reviews

Manufacturing quality audits

Manufacturing Test Yield data.

In addition and to ensure that products are delivered in correct logistics

quality (6R: right product, right quantity, right quality, right time, right

price, right destination) as well, we perform random packaging and

labeling verification out of the box audits.

Periodic re-testing is covered by extended system tests for new Releases

during SIT and SVT in order to validate continual meeting of product

design requirements.

Calibration A global process is implemented describing rules, actions and

responsibilities ensureing only measuring and test equipment with valid

calibration and/or verification according to the defined requirements

(internal and DIN EN ISO 9001, DIN EN ISO 10012) is used. This process

especially is valid for measuring and testing equipment used in

production, for product qualification in R&D and in test engineering as

well as in Technical Service in order to provide evidence of product

conformity.

Measuring and test equipment is clearly identified with ID number and

calibration status. Equipment data and regular calibration is supported

and controlled by a measuring and test equipment data base.

Documented procedures and process:

Control of Measuring and Testing Devices

Internal audits Internal audits are scheduled based on the results of previous audits /

assessments and importance of the activity being audited. Process

assessments are team oriented enhanced process audits involving all

relevant stakeholders and focusing on customer satisfaction, well-defined

interfaces as well as correct input and output definition. Assessments are

scheduled based on the significance of individual process and known or

identified improvement potentials. Audits are set at regular intervals to

ensure all aspects of the appropriate management systems are reviewed.

Audits and assessments are performed in accordance with a defined

process.






Audit and assessment results including strength, identified potentials for

improvement are reviewed by the audit team and the functional area

audited. Discussion includes the

determination of corrective and/or

preventive actions as well as continual

improvement opportunities. All audit

and assessment results are recorded

and a summary of audit activities is

reviewed as part of the Business review.


Internal Audit and Assessment Process

Complaint

Handling

The process for Complaint Management describes rules, responsibilities &

procedures, activities & tasks to be performed in case of occurrence of

deviations/non-conformances to defined processes or process results

(e.g. product malfunction, violation to product specification and/or

unsatisfied internal or external customer expectation).

Basically the principles of the 8D Methodology (8 disciplines for systematic

problem solving) are applied which also follow the PSDM (Problem Solving &

Decision Making) rules of rational thinking processes by Kepner-Tregoe.

Customer complaints

Individual 8D cases (customer complaints via RMA)

Technical Service cases (customer issues via TAC related to

product quality)

Pareto analysis (statistics) enhanced Quality Reporting

Internal complaints

production/test fails (internal complaints yield loss/repair)


Supplier/CM Partner complaints

Individual 8D cases (complaints supplier caused)


Documented procedures and processes:

Complaint Management within ADVA Process

Control of non-

conforming

products

Top priority has always been to avoid any non-conformities. The identified

non-conforming material or product is clearly marked, blocked, contained

and separated from conform items to prevent further product processing

and/or shipments to the customer.

To ensure this, purchase, production and/or shipments of any non-

conforming material is stopped accordingly across the whole supply chain.

Fast and exhaustive investigation of non-conformity supports the

identification of the real root cause and derivation of adequate corrective

and preventive action to rectify fault and avoid recurrence.

In our processes rules, actions and responsibilities are defined to decide

based on risk assessment whether clearly identified and recorded non-






conforming items are intended to be processed and or to be shipped to

customer. Non-conforming product is only shipped with customers signed

waiver, clearly stating the non-conformity and possible effects.

All non-conforming products, after repairs, are re-tested/verified in

accordance to current specifications before shipment.


Handling of Non-conforming Material Internal Standard

Quarantine Material Process

Special Clearance

2.8 CONTINUOUS IMPROVEMENT

General Processes, inspection, and test reports, supplier suggestions, results

stated in internal and external audit reports, field service reports, and

customer feedback are reviewed for continual improvement. Employees in

all functional areas and at all levels have the authority and ability to

propose and implement continual improvement activities using the IDEA

bank ADVA Optical Networkings employee suggestion system.

The ADVA

Efficiency Engine

(AEE)

Corrective and preventive action requests are recorded and reviewed by

GMT. Ongoing reviews are conducted by the ADVA Efficiency Engine. As

appropriate, corrective and/or preventive actions are taken to address

potential problems, customer topics, or to prevent recurrence of non-

conformances.


ADVA Efficiency Engine (AEE) Process






3 CORE PROCESSES

3.1 PRODUCT LIFE CYCLE PROCESS

Product

Development

The Product Life Cycle Process or PLCP refers to the process of bringing a

new product from concept through all activities required until it is fully

deployed in its markets as a mature product and finally throughout its

end of life. The lifecycle methodology is applicable to all projects. It

explains the lifecycle and how it must

be practically applied for any project/

product being introduced, managed or

withdrawn.

Product Life Cycle Process or PLCP is a

team oriented management and

delivery process, which provides a

guideline to successfully bringing a

new product from concept through all

activities required until it is fully

deployed in its markets as a mature product and finally until end of life. It

establishes the concept of Key Dates and Phases.

Key Dates are gateways between the phases. PLCP establishes

requirements for moving from one phase to the next phase. A team of

people performs this activity.

Design and development inputs involve functional and performance

requirements, applicable statutory and regulatory requirements stated

form customers or suppliers or information derived from previous similar

designs. Outputs from the design and development phase are verified

against the requirements/inputs and are approved prior to release.

Goals of the Product Life Cycle Process are:

Improved planning, delivery schedules and predictability

Reduced Time-to-Market for New Products

Improved product quality and Customer Satisfaction

Increased customer involvement in Product definition

Improved Revenue growth and Business Profitability

Supporting documented procedures and processes:

Product Life Cycle Process (PLCP) Handbook and associated processes

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3.2 BUSINESS LIFE CYCLE PROCESS

Sales The Business Life Cycle

Process starts with the

identification of actual and

future Customer wishes,

requirements and needs.

The process includes the

determination of

requirements for product

features, the agreement of

terms and conditions as well

as the determination of

delivery and service

activities. Also verified are

statutory and regulatory

requirements applicable to

product and business.

After requirements determination we review the challenges prior to giving

a final commitment to supply products and/ or services. This approach

ensures that the requirements are clearly defined and understood,

contract or order requirements differing from those previously expressed

are resolved and ADVA Optical Networking is able to meet the customer

demands.

All actions resulting from the requirements review are tracked until

closure by the appropriate Sales representative.

The Product Order and Fulfillment Process (POFP) is ensuring the

Customer PO fulfillment with regards to the hardware and software

delivery related aspects.

To resolve customer reported problems a Complaint handling process will

be triggered. This process has clearly defined rules of agreed severity

classifications.

Customers will be informed in a timely and systematic manner about the

progress of solving their reported case.


Business Life Cycle Process (BLCP)

and associated sub processes

Customer Service ADVA Optical Networking is providing a comprehensive Service offering.

Starting with technical consulting and designing customized solutions we

install and integrate the products guaranteeing quick turn-up cycles and

early ready-for-service dates. In addition customers staff will be trained,

either in classrooms, on the job or through web-based training courses;

lastly our Service offerings ensure that the customers equipment will be

operated and maintained at desired levels and beyond. All above is

coordinated and managed by certified project and program managers.






We have reflected this in our service portfolio, packaged in three Service

categories called BUILD, CARE and ENABLE. The portfolio has been

developed flexibly so that it fully adopts to the needs of our customers

and to the needs from our hybrid sales model.

ADVA Optical Networking defines flexible Sales models that support both

direct and indirect business our Services follows this strategy. Service

delivery is provided via own staff, via certified Services partners and/or

via the support teams of our Service partners. Those external resources

are enabled through our training courses, and backed up by our own

experts, if required.

ADVA Optical Networking Technical Service provides our customers with

resolution of all technical issues raised against delivered products in

accordance with Service Level Agreements (SLA). Technical Service takes

the end-to-end ownership of all

reported technical issues with

the target to deliver efficient

remote technical assistance and

quick problem solving.

The Service Process Framework

(SPF), as part of the BLCP,

ensures that both service

offering as well as service

delivery is properly established

end-to-end, maintained and

automated to leverage

synergies within the

organization and to ensure highest levels of customer satisfaction.

3.3 PRODUCT ORDER AND FULFILLMENT PROCESS

Supply Chain

Management

The Product Order and Fulfillment Process (POFP) describes the full

process that is planning, manufacturing, and delivery. POFP is triggered

by demand, in the form of a Customer Purchase Order and shuts off at

his/her doorstep. The Customer PO and our invoice on delivery are

bookends to this process.

POFP follows the traditional Plan, Source, Make, Deliver (SCOR/ Supply

Chain Operations Reference) model. Planning consists of Make-To-Order

(MTO) and Make-To-Stock (MTS) production planning and delivery

scheduling. Our ERP system, SAP, is the environment where the process

is launched and managed.

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Sourcing covers calculation of safety stocks, supplier forecasting,

purchasing of consumables, part broker management, and

purchasing/maintenance of supply purchase orders.

Make describes all the processes of production; launching production

orders with and without sufficient material, customization of generic-built

goods, customer specific staging, and all of the protective measures

required to guarantee quality during creation.

And finally, Deliver, consits of material picking and disposition towards

customer orders, packing, carrier assignment, outbound logistics, and

shipment itself.

ADVA Optical Networking also maintains the means to manage Returns

as a bolt-on to Plan, Source, Make, Deliver. In this context Returns can

mean bad parts from manufacture that must go back to suppliers,

defective products which customers must return to ADVA Optical

Networking, and loaned goods which customers must return as well.

The POFP process is wholly owned by the Operations department. Supply

Chain Management (SCM) works closely with customer advocates in order

to understand their needs. Production produces what customers want,

with strict guidance given by SCM, closely managed in ERP. Finally,

Logistics converts all that prior work into an invoiceable event by shipping

product to customer.

4 ENVIRONMENTAL / SAFETY MANAGEMENT PROGRAM

EMS

Representative:

The VP QM is nominated to be the EMS Representative for ADVA Optical

Networking globally.

EMS Organization

EMS Program Environmental objectives are established based on the Aspects and

Impacts Report. Objectives are translated into specific organizational

targets. Responsibility for achieving these targets is given to the

appropriate departments or cross-functional teams.






Process The ISO14001 standard is the foundation for the environmental

management elements of the Integrated Management System and

provides a framework for conducting

business in an environmentally

responsible manner.

At each company site, ADVA Optical

Networking has established a cross

functional Environmental Management

System Team, responsible for

determining aspects related to their

functional areas and in driving

improvements. Our global core

Environmental processes include:

Environmental Aspects and

Impacts process to identify and

prioritize the significant environmental aspects associated with

operations.

Emergency Preparedness and response process which includes

methods used to prevent and mitigate the environmental impacts

that could be associated with emergency situations.

Compliance with Legal and other requirements process explaining

how company shall comply and communicate legal and other

requirements.

Environmental objectives and targets are developed considering

significant environmental aspects, technology options and financial,

operational and business plans. The views of interested parties are also

taken into consideration, with the final goal being continual improvement.


Environmental Aspects Evaluation Process

EMS Communication Process

Legal and other EMS requirements

Contractors Guideline

Health & Safety ADVA Optical Networking is dedicated to the health and well-being of

their employees. Therefore each site has established an emergency plan.

This plan covers all possible emergency situtation, from fire to chemical

spills.

Also, the emergency plan is tested in compliance with national legal

requirements.

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5 CORPORATE SOCIAL RESPONSIBILITY (CSR) & SUSTAINABILITY

Our Future Is Defined by What We Do Today

CSR &

Sustainability

Representative:

The VP Operations Engineering, Trade, & Logistics, Operations is

nominated to be the CSR & Sustainability Respresentaive for ADVA

Optical Networking globally.

CSR &

Sustainability

Program

ADVA CSR & Sustainability program is built on four pillars, including: our

employees, local communities, our suppliers and the environment. These

four items represent the areas of biggest impact to our business and

reflect where we want to be judged.






To support and institutionalize our CSR & Sustainability efforts, we built a

management structure around them. Today, ADVA has a cross-functional

CSR & Sustainability board that steers its activities to ensure a balanced

drive, so all growth under each of these pillars makes sense and is

distributed equally. Members of the CSR & Sustainability board come from

Human Resources, Investor Relations, Marketing, Operations,

Procurement and Quality Management. Their goal is to drive

accountability and to make it public.

Reporting ADVA Optical Networking cares deeply about its CSR programs and we

want to share our progress with our customers, partners, suppliers and

other critical audiences. We have selected the GRI (Global Reporting

Initiative) framework for that reporting, that allows us to evaluate

performance improvements period-to-period within the same structure.

Environment ADVA environmental policy, in combination with quality management and

corporate responsibility aspects, is driven by our top management.

Objectives and targets for the business are derived from this policy and

result in our environmental management system (EMS). Performance is

monitored in regular management reviews and further improvements are

initiated as necessary. Our EMS and quality management system (QMS)

are both integrated into our global integrated management system (IMS),

and all relevant locations are certified according to ISO 14001.

Cutting Carbon Emissions

ADVA has been tracking its global CO2 output since 2008. After many

years of hard work ADVA is now seeing its first CO2 reductions and this is

only the first step. At ADVA, were continuing to collate and assess data

across all our campuses to drive further improvement. Whats more,

were now assessing carbon footprint down to the component level in our

products.

Cutting Waste Disposal

Reducing waste disposal is one of ADVAs biggest environmental

successes. Since 2012 ADVA has reduced solid waste disposal by an

annual average of 20% per person. In 2014, were accelerating our

packaging reuse strategy with our I may be ugly but Im green

campaign. This program encourages reuse of supplier packaging,

permitting it to go directly to end customers and skipping a wasteful

replacement.

Supplier CR Audits

Every year ADVA continue to accelerate its supplier CR audits, ensuring

our suppliers are meeting the stringent standards that we expect, that

our customers expect. With over 80% of ADVAs supply chain centerd

around 30 suppliers, were able to build constant and direct

communications. The results are significant.






Local Communities

ADVA believes in developing our local communities, in giving our time to

the areas where we live and work. ADVAs team is continuously

encouraged to improve their local environment, whether through

volunteering or developing new programs that benefit the wider

community. Such activity not only brings its team together but also

ensures ADVA is an active member of local society.

ADVAs local communities program is growing every year. ADVAs team

sponsored local charities, supported university research, participated in

runs and walks, funded disadvantaged groups and took part in

environmental cleanups.

Employees Committed to Our Employees

Its not ADVAs technology that makes us an industry leader, its our

people. Its their vision, their talent, their commitment. They are what

drives our company forward. Our global team works with incredible unity,

one that is felt across all of our campuses. Its this unity that enables us

to excel, to develop technology that is shaping tomorrows networks.

Work-Life Programs

ADVA is a company that supports its team; that ensures they have what

they need to excel. Key to this is an effective work-life balance. To help

here we provide a range of benefits, including health plans, on-site fitness

centers, 401(k) matching, education assistance, global assignments,

family leave and flexible working.






Developing Our Team

When youre building tomorrow, you need to be ahead of the game.

Thats why we offer advance education and training programs. Whether

its practical development or theoretical understanding, we work with our

team to provide them with the knowledge they need to be successful and

motivated.

Employee Programs

ADVA has developed specialized programs designed to benefit our

company and our team. For example, ADVA Global Idea Bank rewards

team members who suggest ideas that drive savings or business growth.

Another example is our Leadership Development program. This involves

individual mentoring of future company leaders.






Supply Chain We Act as One

ADVAs suppliers are an extension of our company. We hold them to the

same exacting standards that we demand of ourselves. We know that our

customers expect the same level of service and expertise from our

suppliers as they would from any member of our team. To do this, we

work closely with our suppliers. In our relationships, transparency is

everything.

6 REFERENCES

Table 1: Reference list to ISO 9001 / TL 9000 / ISO 14001.

Chapter in this manual Chapter ISO 9001 / TL9000 Chapter ISO 14001

1. GENERAL 4.1 4.1

2. QUALITY MANAGEMENT SYSTEM

2.1 CUSTOMER FOCUS 5.2/[5.2.C.1 and 5.2.C.2] 4.3.1/4.3.2/4.3.3

2.2 MANAGEMENT RESPONSIBILITY 5.1/5.3/5.4/5.5/5.6/8.5.1 4.2/4.3/4.6

2.3 SYSTEM ORIENTED MANAGEMENT 4.1 4.1

2.4 PROCESS MANAGEMENT 4.1/4.2/8.2.3 4.1/4.4.4/4.4.5/4.5.1

2.5 RESOURCE MANAGEMENT 6.1/6.2 4.4.1/4.4.2

2.6 SUPPLIER LIFE CYCLE

MANAGEMENT 7.4.1/7.4.2 4.4.6

2.7 MEASUREMENT, ANALYSIS AND

IMPROVEMENT 8.1/8.2.2/8.2.4/8.3 4.5

2.8 CONTINUOUS IMPROVEMENT 8.5.1 [8.5.C.1 and 8.5.C.2] 4.3.3






3. CORE PROCESSES

3.1 PRODUCT LIFE CYCLE PROCESS 7.1/7.3 4.4.6

3.2 BUSINESS LIFE CYCLE PROCESS

AND TECHNICAL SERVICE 7.2/7.5 4.4.6

3.3 PRODUCT ORDER AND

FULFILLMENT PROCESS 7.4/7.5 4.4.6

4. ENVIRONMENTAL / SAFETY

MANAGEMENT PROGRAM

8.3/ 7.2.1 4.3.1/4.3.2/4.4.7

5. CORPORATE SOCIAL RESPONSIBILITY

(CSR)

Electronic Industry Citizenship Coalition (EICC)






Document Owner Vice President Quality Management

Validation

Areas of validity Global all ADVA Optical Networking with regards to:

Quality Management System (QMS)

Environmental Management System (EMS)

Corporate Social Responsibility (CSR)

Range of products All purchased, designed and manufactured products and services sold and

marketed by ADVA Optical Networking.

7 Document History

Revision & Date Description of Changes

Version 3.0/ April 2013 TL 9000 QMS Handbook: To address the needs of the aimed audience of this document, the former TL9000 Handbook was completely and renamed to call Integrated Management System Handbook.

ISO 14001 EMS Manual: The main topics from the former ADVA EMS

Manual were integrated in this document to address the needs of the aimed audience of this document. The EMS Manual became obsolete with the official release of this document.

Version 4.0/ October 2014 ADVA Integrated Management System Handbook is revised with the following main changes:

Quality, Environmental and Corporate Social responsibility Policy

was revised and renamed as Quality, Environmental and Corporate Social responsibility Guiding Principles.

Minor changes made due to the new Business Process Management Internal Standard.

New description added to explain ADVAs new Sustainability and Corporate Social Responsibility program.

Release

Role Name Department / Function

Author Silke Lindner, Wally Walia QM Department

Verifier Wally Walia Director QM

Approver Brian Protiva CEO

Releaser Bernhard Wiehler VP QM

Integrated Management System Handbook

Documents

management responsibility

process management

resource management

quality management system

system oriented management

supplier life cycle

product life cycle process

business life cycle