MTBF

• MTBF was the key Profit driving tool since Reliability only accounts for small percentages of the
customer buying criteria (except Performance segment)

• So our strategy from the initial rounds was to lower MTBF to the average and minimum of the range
in order to save cost and increase contribution margins. And for the performance segment we took
the maximum MTBF value

PFMN & SIZE

• We considered the values for PFMN and SIZE for each company by looking at Industry Condition
Report for customers’ requirement for each segment of market

• As Low end segment customers want low prices product and the age can be a bit high, so we have not
upgraded the Low end segment very often

• While High end segment customers want the best technology in products and new design every year,
so for this segment we took maximum value for PFMN