Koyo Torrington Seven Step Abel Acuña January 21th 2010

Top level Seven Step process Data Pareto Prioritize Scorecard Closure Paynter Solve

Development Process Koyo Seven Step Supplier process “Gain Control” Seven Step focuses supplier and SQD /SQA resources Utilize the data effectively Pareto high impact Establish supplier commitment to “Improve” The supplier is part of the Value Stream within Koyo’s manufacturing operations Standardize lessons learned Develop a close loop Read across commodity Eradicate defects Focus on prevention vs. detection in the process Sorting alone will not achieve a stable process Errors can occur and will escape Integrate into the APQP model Go back to the PFMEA and control plan and build on known risk factors

Development Process- Raise the bar Summary Build accountability It takes leadership at all levels Protect the supply chain, while your process is being stabilized Leverage value stream network SQD focus is to work with other functional areas to balance the “production cell” in the value stream Treat the supplier as if the Value Stream was within Koyo’s manufacturing plant We are dependent on our suppliers performance to quality and service

Supplier 2010 Performance DMR

Supplier – Name Quality Analysis Process Pareto

#1 Issue – Defect Pareto Level II

Root Cause Verification – Proof #1 Issue – Defect Root Cause Analysis - Issue Root Cause Verification – Proof Actions - Action Target Date Responsibility Effect Root Cause Analysis – i.e. Through Six Sigma analysis root cause was verified as rack condition, describe or show data to support that conclusion Actions – list the top 3 actions addressing the root cause, including timing and responsibility and anticipated EFFECT on PPM

#1 Issue – Defect Deployed CS1 Installed Level 2 Poka-yoke 2007 Forecast of C/A Impact Deployed CS1 Installed Level 2 Poka-yoke Establish Predictive Tool Maintenance Schedules The waterfall should PROJECT PPM performance as a result of the specific actions described on the previous slide

#2 Issue – Defect

Root Cause Verification – Proof #2 Issue – Defect Root Cause Analysis - Issue Root Cause Verification – Proof Actions - Action Target Date Responsibility Effect Root Cause Analysis – i.e. Through Six Sigma analysis root cause was verified as rack condition, describe or show data to support that conclusion Actions – list the top 3 actions addressing the root cause, including timing and responsibility and anticipated EFFECT on PPM

#2 Issue – Defect 2007 Forecast of C/A Impact The waterfall should PROJECT PPM performance as a result of the specific actions described on the previous slide

Overall Waterfall CS1 Containment Level 2 Poka-yokes New lever packaging The individual actions should be deducted from the baseline (in the month they occur) to achieve the projected overall PPM.

2007 Supplier Effectiveness Paynter Chart Corrective Action Implemented Corrective Action Not Effective Corrective Action Effective