Bridge Support to a Tier 1 Automotive Manufacturer in Chennai, India

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1 Bridge Support to a Tier 1 Automotive Manufacturer in Chennai, India Bridge Support to a Chennai Automotive Manufacturerstems Exterior systems Overhead systems, Side wall systems, Hood systems

2 Background The company is part of a group with facilities in India, France, Germany and USA, covering many sectors including Automotive, predominately in the plastics processing technologies They are based in Chennai India and supports major 1st tier Automotive customers supplying into Ford and Renault/Nissan as well as the OEM TVS ( Motorbikes) Faurecia Mobis Hanyang Hamil Visteon Processes on site Injection Moulding (18 machines from 110T to 1800T) Blow moulding ( Assembly- Vibration, Ultrasonic welding and manual assembly Products Instrument Panels Sub Assembled Parts- Glove Box, Pinnacles, End caps, Bezels etc. Inner Door cases Fuel tanks Air Conditioning Ducts and hoses Also responsible for 100+ Painted pass through parts Approximately 450 employees working 24 hours 6 days

3 Major uplift in volume later in 2014 from 90,000 car sets to 210,000 per year Concerns regarding the Quality and Delivery performance had been raised at European Head quarters causing the potential lose of future business. Bridge initially proposed a 12 week program but company requested 20 weeks due the known issues on plant Recent replacement of Operation Manager from Quality Managers role New Internally promoted Quality Manager with no experience Difficulty in recruiting educated shop floor workforce due to rural location Poorly maintained equipment Plant had only just achieved profit after many years of loss (only by severe headcount reduction) Weak management understanding of customer requirements ( especially those with European audit standards) Inexperienced middle management. Bridge placed one Principal Engineer on site who had worked on similar projects to utilise the previous experience built with specific injection moulding technology knowledge.

4 MPM (Missed Deliveries per million) Jan Current level Improvement Actions CompletedInstall TPA (Truck preparation areas) manifests picked and prepared in designate area up to 4 hours prior to delivery slot Hot spot tracker boards for and shortage at -2 hour to delivery time Daily tracking of MPM by cell leader No shortages for the companies internally manufactured part in whole of March 2014 Further ActionsSupplier vehicles not arriving as per delivery time slots Only receiving 2 manifest at twice per day schedule rather than 4 manifest once per day Painted parts from SAPL and ACT quality and supply issues causes delays. BEFORE AFTER

5 Quality Management Jan Formal 8D Open- 58 Overdue 28 Current Open 39 (all approved and now in monitor period) Overdue 0 Improvement Actions CompletedDaily Quality Meeting held with all Quality Engineers and Manufacturing departments. Issues at Customer, PDI and Firewall published Action plans against top 3 identified Action to remove firewall and improve inspection/process at original manufacturing point instigated Weekly timetable for closure of open 8D instigated Specific separate location for Painted parts inspection with daily follow up of defects Further ActionsImprove 8D training for manufacturing areas down to Shift in Charge level Daily tracking of Open 8D status

6 Management Control Improvement Actions Completed Daily KPI s rationalised to focus on customer facing issues -Reduced from 35 to 13 Daily meeting with tracked actions Weekly Management Review each department head presents results + Mid term actions Weekly Conference call with Plant Manager, CEO and VP. 6 High level KPI identified and tracked MPM- as above Open 8D d status as above Customer PPM - Significant reduction in PPM but all data distorted by SAPL/ACT Paint issues Inventory Level Equipment Efficiency (If No plan removed from =IMG 86.8% BMG 83.2%.No Plan = IMG-22% BMG 19%) Internal PPM Reduced from 56,219 to 42,827 ( Target 40,000 due to tool change over and power cut start ups) Shift wise Process audits introduced.being completed by Cell/Shift in charge, Engineer, Senior Engineer and Operations Manager. To confirm adherence to process plus identify areas for improvement. Further Actions Cell daily review with local KPI to be introduced Improve action planning for systemic action Maintenance Preventative planning. All current planed PM completed however repeat breakdowns and improvement ideas to be built into plan.