Unitrode's Year 2000 Readiness Program

Year 2000 Information and Readiness Disclosure Act of 1998

Information contained on Unitrode's past and present Year 2000 Internet Web Site pages regarding products and services offered by Unitrode are " Year 2000 Readiness Disclosures " as defined by the Year 2000 Information and Readiness Disclosure Act of 1998 (Public Law 105-271, 112 Stat. 2386) enacted on October 19, 1998. Unitrode's Year 2000 Internet Web Site pages have been and will continue to be our primary mechanism for communicating year 2000 information.

Legal Disclaimer

Introduction

Much of the world's computer hardware and software is not designed to process date information after 1999. This failure occurs because computer programs have historically used only two digits to identify the year in a date, but problems related to processing of date information also may arise because some software assigns special meaning to certain dates. This Year 2000 problem could, if uncorrected, cause computers and other equipment used by Unitrode and Unitrode's suppliers and customers to operate improperly.

Unitrode Year 2000 Project Summary

Unitrode Corporation (UTR) has taken a proactive approach to resolve the Year 2000 (Y2K) computer date issue. In September 1997, Unitrode began a company-wide program (the "Program") to assess the possible vulnerability of Unitrode to the Year 2000 problem and to minimize the effect of the problem on Unitrode's operations. The Program is centrally directed from the Year 2000 Program Office at Unitrode's corporate headquarters and is concerned with all aspects of Unitrode operations, from safety equipment to business systems to supplier readiness, and includes all our locations worldwide. Our strategies are designed to keep the Company on schedule to meet the milestone dates established for the resolution of this issue, and to ensure business continuity on January 1, 2000 and beyond.

Unitrode's approach to the Year 2000 issue is based on a modified version of standard Year 2000 project, as described in the US General Accounting Office (GAO) Year 2000 Assessment Guidelines, and similar methodologies (Awareness, Assessment, Renovation, Validation, Implementation). The project has an executive sponsor, with visibility and regular reporting to Unitrode's top management. Responsibilities have been assigned to members of the Year 2000 Project Team, divided by function and location. Each team leader has the responsibility and authority to inventory, assess and repair any Year 2000 issues. The phases of unitrode's approach include awareness definition, inventory assessment, action planning, unit testing, renovation, integration testing, redeployment, and contingency planning. The comprehensive, 31-step SEMATECH YEAR 2000 Readiness Test Scenario is the basis of equipment and component testing, when required. The team meets monthly to report status and issues to Unitrode's senior management.

Other than the recently-completed implementation of an Enterprise Resource Planning (ERP) system, which budgeted separately, Unitrode has not made or budgeted for any extraordinary capital or expense items for Year 2000 readiness. Although many individual pieces of software, hardware, and equipment were upgraded or replaced, the budget for those upgrades was part of the Company's normal operations and maintenence activities, and is considered immaterial to the Company's financial position.

All of Unitrode's products, as delivered to customers, are fully Year 2000 compliant.

The Company, including the newly acquired Dallas operations, has completed the inventory and assessment of all computer-based software and hardware to ensure Year 2000 readiness. Certain non-Year 2000-ready systems and equipment have been or will be modified, scrapped, or replaced. Formal communications have been established with all significant vendors to determine the extent to which the Company could be impacted by third parties' failure to remediate their own Year 2000 issues. The Company is currently unaware of any Year 2000 issues at the Company or a third party that will not be ready in a timely manner and could result in a material effect on the Company's business, results of operations, or financial condition. The Year 2000 Readiness project is expected to be substantially completed by June, 1999.

Definition of Unitrode Y2K Readiness

Unitrode must assure customers that the Company's ability to design, manufacture and deliver products will be unaffected by Year 2000 and that the Company's products either do not contain any date functions, or will accurately process date data (including, but not limited to, calculating, comparing and sequencing) from, into and between the twentieth and twenty-first centuries during the years 1999 and 2000.

However, for business systems and processes, Y2K Readiness means more than just "compliant" hardware is used. Y2K Readiness means that the Program will assess the possible vulnerability of Unitrode to the Year 2000 problem, across all functions and locations, and will eliminate any effect on Unitrode's operations. The solution may or may not be a hardware or software change. In some cases, especially in dealing with suppliers and customers, the solution may involve developing alternatives and contingency plans in order to avoid any problems. The Program is designed to ensure that all areas of Unitrode will reach "Level V Readiness." For internal systems and processes, this Readiness Level is expected to be achieved by June 1999. The Company intends to evaluate the readiness of external suppliers and develop contingency plans where necessary. In some cases, the company will merely need to continue to monitor their progress up until the January 1st, 2000 deadline.

Project Methodology

Unitrode's approach to the Year 2000 issue is based on a modified version of standard Year 2000 project as described in the GAO Year 2000 Assessment Guidelines. The project has an executive sponsor, with visibility and regular reporting to Unitrode's top management. Responsibilities have been assigned to members of the Year 2000 Project Team , divided by function and location. The phases of Unitrode's phased approach include awareness definition, inventory assessment, action planning, unit testing, renovation, integration testing, redeployment, and contingency planning. The comprehensive, 31-step SEMATECH YEAR 2000 Readiness Test Scenarios (Version 2.01) is the basis of equipment and component testing, when required.

The Scope of Year 2000 Project

Unitrode's Year 2000 Project addresses five "major elements":

End-Products (as delivered to customers) Unitrode products (analog/linear and mixed-signal integrated circuits, electronic modules, and non-volatile products) that are supplied to Unitrode's customers.
Buildings and Facilities, EH&S All physical facilities, including security, elevators, environmental monitoring, and health and safety equipment.
Business Information Systems Management information systems and personal computer applications, including the computing environments that support them.
Manufacturing Equipment Equipment that uses a computer to control its operation either for producing an end-product or providing services.
Suppliers Assurance that those who sell goods and services to Unitrode will not interrupt Unitrode operations due to the Year 2000 problem.

 

These five major elements were then divided by functional departments and locations and Year 2000 Team Leaders were assigned. Each Team Leader has the responsibility and authority to inventory, assess, repair, and develop readiness plans for all Year 2000 issues within his or her area of responsibility. (See Year 2000 Readiness Status for a listing of the areas of responsibility.)

Frequently Asked Questions

General Issues :
Q: Does Unitrode's Year 2000 project have the full support of your high-level management?
A: Yes, top management's full support is assured. The Vice President and Chief Information Officer is responsible for the overall project coordination. Both the CEO and President attend monthly review meetings. Unitrode's Board of Directors has also been appraised of the project.
Q: When did Unitrode start implementing the Year 2000 project?
A: The Year 2000 Readiness Program was formally kicked off in January of 1998. However, as early as September 1997 the MIS department had already begun to assess the need to address Year 2000 Readiness issues. The first step was to start replacing the Enterprise Resource Planning System. Oracle Applications, the Company's new ERP system was installed for some functions in September 1998, and the remainder were completed in March 1999. Oracle software is fully Year 2000 compliant.
Q: When will Year 2000 issues be 100% settled inside Unitrode (i.e. all solutions tested, validated and implemented) ?
A: Unitrode plans to have all areas at Level V Readiness by the end of June, 1999. This means that
  • Systems critical to operations have been tested.
  • Audits and associated corrective actions have been completed.
  • Contingency plans have been completed.
  • Follow-up checking of suppliers and customers has been completed.
Q: What is the scope of the Company's Year 2000 readiness activities?
A: The scope of Unitrode's Year 2000 Readiness activities covers all areas of the Company, and all locations worldwide, including the following: manufacturing equipment, IT infrastructure (computer and communication equipment, commercial software, in-house applications), manufacturing equipment; facilities; environmental health and safety, and all significant suppliers (raw materials, subcontractors, utilities, banks, HR service providers, and other vendors).
Q: Does the Company have a complete and detailed inventory of all affected processes, applications, hardware, operating systems, and database where Year 2000 issues may exist?
A: Yes. The initial inventory of Items was completed in March of 1998. This inventory was created from numerous sources including the Fixed Assets system, our ISO-9000 operation and calibration procedures, maintenance contract records, and also by walk-throughs of all our sites. The maintenance of the inventory is the responsibility of the various team leaders. Major Element Items are under continuous review, and additional Items may be identified in the future.
Products :
Q: Do you think the Company's products have the Year 2000 problem?
A: A majority of the Company’s products contain no date logic and are therefore Year 2000 compliant by default. The only products with date logic are the Benchmarq-branded Real Time Clocks (RTC's) but these are fully Year 2000 compliant, and will continue to function correctly after the year 2000. However, the systems in which these RTC products are embedded should be checked to verify that those programs or equipment use the date codes correctly, and that those products themselves are Year 2000 compliant.
Suppliers:
Q: What methodologies are used to ensure your major suppliers' readiness?
A: The Company has implemented three programs to help ensure vendors' Year 2000 Readiness. These are: (1) A request to suppliers to provide Year 2000 Readiness certification on the hardware and software supplied to Unitrode. (2) A progress report tracking as to the Year 2000 Readiness of their companies. (3) An audit of Year 2000 mission-critical suppliers for their Year 2000 Readiness. To date, all major suppliers have been contacted, and statements of compliance have been filed. Those key suppliers who are especially critical to the manufacture and delivery of our product (Fabs and subcontract assemblers) have been asked for additional details, and where necessary, the Company is conducting on-site visits. All their Year 2000 plans are revisited quarterly for progress.
Year 2000 Project:
Q: Who is the primary executive responsible for Unitrode's Year 2000 Readiness Program?
A: Unitrode Vice President Robert N. Barrett is the executive ultimately responsible our Year 2000 Project. He holds monthly Year 2000 Readiness Program reviews and coordinates the application of Corporate-wide resources to ensure that Unitrode's manufacturing and delivery services will not be adversely affected by the Year 2000 issue.

Additional Information


Any further questions regarding Unitrode's Year 2000 Readiness that are not answered on our Year 2000 Internet Web Site should be addressed to:

                    Kevin Blinn
                    Year 2000 Project Coordinator
                    Unitrode Corporation
                    7 Continental Boulevard
                    Merrimack, NH  03054
                    Phone: (603) 429-8972
                    Fax:      (603) 429-6085
                    E-mail: kevin_blinn@ti.com