Common use of Quality Improvements Clause in Contracts

Quality Improvements. In order to improve yields and the overall -------------------- quality of the Products produced by ENACT, upon request of LifeScan, ENACT agrees to actively participate in LifeScan Program for Controlling a Process and to the extent applicable to request its manufacturing subcontractor to participate therein. This program will be presented by LifeScan to ENACT's representative(s) following notification to ENACT that LifeScan would like ENACT to participate. It consists of the following ten steps: 1. Process Flow Diagram 2. Failure Mode and Effects Analysis 3. Identify Critical "Nodes" 4. Identify Critical Measuring Gauges 5. Run Gaugeability Study (Gauges R & R) 6. Establish Gauge Control Chart 7. Set-up Data Collection 8. Components of Variance 9. Establish Control Charts 10. Establish "Out of Control" Procedures