Large Automotive OEM – FMEA Managed Service Case Study Large Automotive OEM – FMEA Managed Service

Failure Mode & Effects Methodology Process Flow Block Diagram Customer Requirements Design Inputs Process FMEA System FMEA Control Plans Shop Floor Checklists © 2010 Omnex Inc

Automotive OEM – FMEA Managed Service Design Failure Mode and Effects Analysis -- Distribution of Recommended Actions Before AQP After AQP © 2010 Omnex Inc

Initial Quality of U.S. and Import Brands 1999-2010 Note: Import Brands Include Europe and Asia

Large Aerospace Engine Manufacturer Case Study Large Aerospace Engine Manufacturer

New Product Introduction & PPV Program Start Experimental Production Product & Process Planning PPV Activities Consolidation Planning Product Design and Dev. Ongoing Part & Process Control Process Design and Development Industrialization Product and Process Validation Production Corrective Action Board activity Plan & Define Program Product Design & Development Verification Process Design & Development Verification Product & Process Validation CAB Activity © 2010 Omnex Inc

Large Aerospace Engine Manufacturer Conducting PPV (Product and Process Validation including FAI) training and facilitation for internal resources and 200 suppliers Rollout PPV to ensure product and process conformance for all new products Currently in initial stages – 10% to 30% improvement expected in RCNs

Truck – System Supplier Case Study Truck – System Supplier

Operations Excellence MANUFACTURING Materials Purchasing FUNCTIONAL EXCELLENCE Quality 6S/VISUAL WORKPLACE We are all material handlers, expeditors,production planners. We all produce something, some service. We require metrics to measure our progress, we need feedback on regular basis. We have customers We have problems We are not as organized as we could be We are all support people Team Skills Global 8D FOUNDATIONAL EXCELLENCE QOS TS16949/APQP/PPAP © 2010 Omnex Inc

Truck Industry Large Sub System Provider 187 DPM Improvement Before After Comments Quality Rejects measured in percentages 3 Years – 187 PPM Implementation of APQP and PPAP internally and with Supply Base

Semiconductor Industry Transition Semiconductor Assembly Council – Representing 95% of Chip Industry Outside Japan

Semiconductor Industry Methodology Customer Involvement Similar to Aerospace Industry MSA, SPC, and Process Control ISO TS 16949 plus APQP and PPAP © 2010 Omnex Inc

Customer Driven Changes: 1998 to 2004 Productivity improvements: 10% – 30% Equipment People Yield improvement Subcontractor yields improved to 99.6% Performance to schedule improvement Consistently sustaining 100% Number of customer complaints decreased Up to 15x reduction PPM improved by over 100 times to under 30 PPM © 2010 Omnex Inc