Date: February 2006

Natel Achieves over 99% Yield

In 2003, President, Sudesh Arora embarked Natel on implementing 5S and Lean Enterprise throughout the company. The stretch objectives he set were to achieve over 50% reduction in manufacturing space, 40% reduction in material and labor costs and a 99% first pass yield. To provide incentive to the employees of Natel, Mr. Arora put his money where his mouth was and weekly and monthly incentives were set for achieving over 96% and over 99% first pass yields.

It took only weeks to achieve the space savings by reorganizing the production lines. Extensive training was done on all aspects of lean. Within six months 91% yield was achieved, after 12 months, 96% was the consistent yield throughout. Material costs were also reduced significantly through aggressive component buying, better inventory management and improvement in yields. Improving the yield beyond 98% was a difficult process, but the employees persevered and finally February 2006 broke through the barrier to exceed 99% first pass yields.

For the customer, these achievements translate to lower costs, less wastage and faster delivery. Thus, this initiative has created a win-win situation for Natel and its customers. Natel continues to strive for 100% yield, an unprecedented objective in the Microelectronics assembly business.

About Natel

NATEL Engineering Co., founded in 1975, is a leading provider of microelectronic assembly experience, with advanced capabilities across a wide range of products and applications, including fully automated assembly of T/R modules, hybrids, MCM, and Chip-on-board products. NATEL’s substrate manufacturing capabilities include Thick Film, Thin Film, LTCC, and AlN. NATEL holds and maintains industry specific certifications such as AS9100 and MIL-PRF-38534 (DSCC) Classes H and K, and operates in over 220,000 square feet of manufacturing facilities that includes 31,000 square feet of advanced clean room area. NATEL is a pioneer and proven innovator in the manufacture of products for fiber optics, optoelectronics, space, defense, medical, and the RF/Microwave industries. To learn more about NATEL, contact us at 9340 Owensmouth Avenue, Chatsworth, CA 91311; phone: (800) 590-5774; fax: (818) 734-6530; e-mail: mdarrow@natelengr.com