GKN Driveline IMDS Training Manual for Suppliers

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--------------------- GKN Driveline IMDS Training Manual for Suppliers Sustainable Product Development Page 1 of 9

--------------------- Why IMDS? the Background IMDS (International Material Data System) is a reporting system that has been developed by EDS on behalf of a joint venture of OEM s to answer the legislation regarding ELV (End of Life Vehicle). The European Directive 2000/53/EC and its subsequent amendment 2002/525/EC, ELV Directive has 2 key sections that Member States need to comply with: Article 4, Prevention. This details the removal of hazardous substances in components. 1a) limit the use of hazardous substances in vehicles and to reduce inclusion of them from the vehicle conception (thereby avoiding their release to the environment, making recycling easier and avoiding the hazardous waste disposal. 1b) design and production to include dismantling, reuse and recovery 1c) use increased quantities of recycled materials 2a) ensure that Pb/Cd/Hg/Cr6 are not used as from 1 July 2003 for vehicles put on the market (other than those stated in Annex II) 2 b & c) description of the use of Annex II Lead, Mercury, Cadmium and Hexavalent Chromium are labeled as Hazardous substances in the Directive and therefore are to be removed from vehicles where possible to meet restricted allowable limits (by weight). Annex II of the Directive outlines some exemptions, which includes: Materials and components exempt from 4 (2)(a): Lead as an alloying agent (steel for machining purposes and galvanized steel containing up to 0.35% lead by weight) Lead and lead compounds in components (exceptions exist for dampers and vulcanizing agents for elastomers) Hexavalent Chromium (corrosion preventative coatings 1 st July 2007) Note/ a maximum concentration value up to 0.1% by weight and per homogenous material, for lead, mercury and hexavalent chromium and up to 0.01% by weight per homogenous material for cadmium shall be tolerated, provided these substances are not intentionally introduced Intentionally Introduced shall mean deliberately utilized in the formulation of a material or component where its continued presence is desired in the final product to provide a specific characteristic, appearance or quality. The use of recycled materials as feedstock for the manufacture of new products, where some portion of the recycled materials may contain amounts of regulated metals, is not to be considered as intentionally introduced. Article 7, Reuse and Recovery. Targets for 2006 and 2015 are detailed in this section. January 1 st 2006: minimum 85% re-use and recovery of ELV s 80% re-use and recycling (Vehicles made before 1980 target is reduced to 70%) January 1 st 2015: minimum 95% re-use and recovery of ELV s 85% re-use and recycling Not all of the OEMs have chosen IMDS to be their way to gather information. Honda, Rover, Peugeot and Renault are examples of customer who have not yet chosen to join in IMDS. These customers have their own system to collate this information (namely excel spreadsheets). Sustainable Product Development Page 2 of 9

--------------------- Please be aware that to support the OEMS meet the demands of the legislation we need to support all systems of reporting at present. Note/ a copy of the legislation including the updated Annex II can be accessed through the IMDS web site. Note/ This is purely a summary of the legislation that has been released. It by no means illustrates the basic substance requirements of GKN Driveline. No Lead (Pb) or Cadmium (Cd) are accepted in materials received by GKN Driveline, even as impurities (Nil < 10ppm). Sustainable Product Development Page 3 of 9

--------------------- IMDS Overview The IMDS is the automotive industry product environmental data system. It is a joint development of Audi, BMW, Daimler-Chrysler, Ford, Opel, Porsche, VW and Volvo, which was set up in the summer of 2000. Fiat joined this development in July 2001, Toyota in June 2002, Mitsubishi in Nov 2002 and Nissan in March 2003. Other OEMS s are still considering joining the IMDS way of Working. The aim of IMDS is to enable a complete product environmental model to be constructed for a vehicle, including the chemical composition of all materials used in components and coatings. This requires the vehicle manufacturer and all component and material suppliers in a supply chain to enter detailed information into the IMDS database via the Internet, and subsequently maintain this information e.g. to take account of engineering changes. The IMDS website is accessed on www.mdsystem.com. All users with Internet Access can access this site and view the public pages, which contain information on: System (link takes you to the Log on screen) Home (Welcome to IMDS) Community (Links to customer websites) News Training Contact (helpdesk telephone numbers and hours) Lists (Link to the VDA substance listing) FAQ (Frequently Asked Questions) including links to customer presentations Index Access into an IMDS account is required to view existing component information within that account, to create new information, and to modify existing information. Users are restricted from directly accessing confidential information entered by other companies, and can only view information that has been created within their own local section in IMDS, or information which has been released by users into a public section of IMDS, or that has been received from another account. Sustainable Product Development Page 4 of 9

--------------------- IMDS Term Definitions MDS Material Data Sheet: A MDS is a logical data unit and constitutes a complete information package for a part, as described in VDA Volume 2. A MDS always contains at least one module. MDS s are subject to revision control. Of relevant data changes, a new MDS version needs to be created. If a version has been sent and accepted, it is no longer possible to make changes (with a few exceptions) to this particular MDS. Component: A component is identical with an assembled component. One component can consist of several different components. In extreme, a component could even consist of thousands of other components. Semi component: A semi-component is similar to a component. However, it differs from a component because it only becomes a component through another processing step (e.g. cutting to size) Material: The material is the basic component for each component (plastics, metals, etc.) Basic Substance: Basic substances are chemical elements or chemical combinations as they naturally occur or are produced. This includes all necessary agents in order to maintain it s stability, and pollution which occurs because of the manufacturing process. This excludes solvents, which can be separated from the material without reducing its stability or changing its make-up. Module: Modules are components from which the user can create MDSs. They contain the tree structure and all information containing the materials and substances contained in the parts. Modules are also subject to revision control. This means that once a user has released a module for productive run, it can no longer be edited. A module can be created in one of 2 ways: It can either be a partial copy from a MDS, or it can be generated via the menu item Create module. In the former case, the module contains information as to which MDS it was copied from. The user can also enter additional references to other MDSs manually. Tree structure: A module consists of a tree structure. This is a structural representation of each of the materials and the substances contained within the parts. Node: A module consists of a tree structure and information on the materials and substances contained in the parts. Each material / substance always represents a node in the tree structure. When the user clicks on one of these modes he can view the information on this material / substance (node) in the right hand field. Sustainable Product Development Page 5 of 9

--------------------- MDS Structure All MDS s for components, semi components and materials, have the same structured 4 step approach for inputting the requested data: Ingredients Security / Environment Supplier Information Recipients Data Category 1. Component / Material composition with BOM tree structure, Ingredients This section lists the contents of the component/ semi-component / material. To ensure a clear display, the system uses a tree structure, which is named the Product Structure Tree. It displays all the nodes the item is built up of. You can open and close the structure using the options, expand and collapse. This sections holds information regarding: Component / Semi component / Material Name Internal part number Allocated IMDS ID number Weight Tolerance (on weight) Note/ Note/ Note/ For material naming, please reference GKN Driveline Standards where possible. When creating the MDS BOM any Hazardous Substances that are below the maximum concentration and are not intentionally introduced should not be reported in IMDS. Jokers are to be used for substances with a maximum allowable limit of 10% of the material composition. Category 2. Security / Environment information This section holds information pertaining to the security / environmental risk of the MDS, ie how hazardous the material is to water etc. Category 3. Supplier Information Select your company and the correct Contact Partner (IMDS user) for the MDS being submitted. Contact details for that user should automatically appear. Category 4. Recipients Data The receiver of the MDS is added in this window. Please send the data to the GKN Driveline Account (Number 5929) referencing our part number (as per purchase order). Sustainable Product Development Page 6 of 9

--------------------- Creating Components/Semi-Components/ Materials: To create a new Component or semi component select the Menu Option Create which then leads to a sub-menu with 2 options: 1) MDS 2) Module Upon selection 3 options will then appear: 1) Component 2) Semi-component 3) Material Insert the tree structure of an MDS or Module The following buttons are used to create the tree structure of a MDS for a component / material: Component / part: create a component in the MDS the component name, part number and weight shall be inserted. Semi-component: create a semi component in the MDS the semi component name, part number shall be inserted Material: is used to search for a material in the material database held within IMDS. The material shall be inserted under the component / semi component level. Substance: is used to search for a substance in the substance database within IMDS. Substances shall be inserted under the material level when creating a MDS of a material. Referring to existing MDS of a sub-component: Is used to search for an already existing MDS of a sub component in the IMDS database, either self-made or from a sub-supplier. Delete a node: is used to delete a node within the structure tree. Select the correct part and continue by selecting lower level BOM (substances for a material, or lower level assembly parts for a component). Existing components/semi-components can be copied from a previous IMDS submission to create new components/semi-components definition. Where necessary, only the weights and Part Numbers will then have to be changed. Use Copy and Copy to get a new IMDS ID Number for a new component/semi-component. All submissions should be in a structured assembly. Use of Jokers for Confidential Compositions: IMDS provides a mechanism to enable users to protect confidential material information; these are referred to as jokers or wild cards. The jokers on offer can be found by typing Sustainable Product Development Page 7 of 9

--------------------- system into the CAS (Chemical Abstract System) number box on materials. The most accepted joker is miscellaneous although customer restrictions differ on the type and quality allowed please refer to the individual end OEM way of working to see if the material composition complies. Releasing Material Data Sheets (MDS) The purpose of the IMDS is to create MDS and make them available to selected receivers. There are 4 ways to do this: Send a MDS: The most common action is to send a MDS to one manufacturer. He can either accept or refuse the MDS. When he accepts the MDS it automatically closed to further changes. When the manufacturer refuses the MDS, the creator of the MDS must make any changes. Recommendation of a MDS: When the same component is delivered to several different manufacturers, the MDS can simultaneously be proposed to these receivers. In the ideal cast all receivers accept the MDS just as it is. If one of the receivers would like to have some changes made, a new MDS specifically made out for this receiver must be created and resent to the receiver. Internal access to a MDS: The creator of a MDS has the possibility to make the MDS readable for internal use, i.e. every authorized user within their own company can read the MDS. Public access to a MDS: The creator of a MDS has also the possibility to make the MDS readable for every user of the IMDS. The Construction Kit System: A MDS can be created at any time, but for components, which only vary slightly, it is time consuming. Therefore, each company can design their own construction kit within the system. This is where modules are created. The SENT page: Please note the terminology used here as outlined at the bottom of the page within the system. Acpt Recd Mod Seen Nseen Cbs accepted Rejected (NOTE THIS DOES NOT MEAN RECEIVED) modified opened by the receiver not yet opened cancelled by sender IMDS Contacts within GKN Driveline If you have a query, please forward this to your local GKN Contact (requesting work regarding IMDS), or to: Kate Everitt, Client manager, GKN Driveline IMDS account Tel: +44 (0)1527 533670 Email: kate.everitt@add.gknplc.com Sustainable Product Development Page 8 of 9

--------------------- Summary Rules for IMDS for Suppliers to GKN Driveline Operations No GKN patented data to be Published within the IMDS arena All data to be created in English for ALL GKN Driveline Operations Use internal Part numbers when creating parts but complete the GKN Part number on Page (category) 4 upon submission. Structure to follow guidelines as per IMDS report. Glossary CAS Number Chemical Abstract System Number globally recognized system for identifying individual chemicals Dismantling information means all information required for the correct and environmentally sound treatment of end-of life vehicles. It shall be made available to authorized treatment facilities by vehicle manufacturers and component producers in the form of manuals or by means of electronic media. EDS ELV IMDS MDS Recovery Recycling Reuse VDA Electronic Data Systems (company hired to create IMDS system) End of Life Vehicle; a vehicle which is waste within the meaning of the article 1(a) of Directive 75/442/EEC. International Material Data System Material Data Sheet means any of the applicable operations provided for in Annex IIB to Directive 75/442/EEC means the reprocessing in a production process of the waste materials for the original purpose or for other purposes but excluding energy recovery. Energy recovery means the use of combustible waste as a means to generate energy through direct incineration with or without other waste but with recovery of the heat. means any operation by which components of end-of life vehicles are used for the same purpose for which they were conceived. The Verband der Automobilindustrie (Automobile Industry Association) Sustainable Product Development Page 9 of 9