Common use of System House Sustaining Engineering Clause in Contracts

System House Sustaining Engineering. Flextronics will participate with Nortel Networks in Product evolution discussions throughout the Product lifecycle and Flextronics will manage the elements of Product evolution in Flextronics’s manufacturing processes and in the supply chain. Flextronics will be required to assess opportunities and recommend to Nortel Networks those that offer the potential to: (a) reduce Product cost; (b) enhance Product manufacturability; (c) mitigate against component End-of-Life; (d) allow consumption of excess and Exceptional Excess, Consigned and Obsolete Inventories; and (e) work with the appropriate design authority, enhance the overall Product design. These opportunities must be fully assessed and offer a high probability of implementation before a request for implementation is sought from Nortel Networks Research & Development group who retain all authority over Product definition. The forum to make recommendations on Product change will be the scheduled Product design review, involving Flextronics and Nortel Networks Research & Development group. These recommendations should be in the format of engineering change requests, the content of which will be agreed between the participating groups. Flextronics will perform the following activities during all aspects of product lifecycle management for all phases of a Product’s life: (a) engineering documentation and change management; (b) DDME, and similar database maintenance and network support; (c) Product design and Specification files transfers to users and suppliers; (d) dependability and reliability studies; (e) manage known product defects (KPD) as identified by Nortel Networks; (f) test and validate Product change including component changes; (g) research, review and recommend to Nortel Networks for approval (including business case, detailed cost analysis, design plans, last time buy plan, qualification and verification plans, scope of intellectual property risk known to Flextronics and the basis of Flextronics’s knowledge) of the best alternative available, such as, last time buy, and/or component substitutions/replacements, component packaging foot print changes, elimination of the component by incorporating function into another component, specification relaxation to eliminate the need for the component; (h) complete technical development, prototypes, verification and testing; and (i) project management and implementation of solution including, the phase in and phase out of all impacted materials. If Flextronics informs Nortel Networks that any history Nortel Networks has provided relating to the above is inaccurate or insufficient to allow Flextronics to perform the above activities, the Parties will discuss exceptions to the obligations set out in this Section 6.3.3 (a) to (i) immediately above.