Feedback of Scrap Convergence Plans Wuhan lens lines Frédéric MORET Qiang ZHOU Mar 30, 2007

Wuhan lens line #1 Targets From 55% to 20% from February 1st, 2007 Reduce average scrap rate: From 55% to 20% from February 1st, 2007 From 20% to 10% from April 1st, 2007 Achievement Operation by Wuhan team alone Convergence team in Wuhan (3 weeks) Convergence team in Wuhan (3 weeks) Monthly average 24% 16% Up to March 27

Wuhan lens line #1 Weekly results

Wuhan lens line #1 Scrap Convergence Plan Wuhan team + 8 people of Branch process team (spending in total 6 weeks in Wuhan) Step I: Analysis Step II: Quick savings by basic operation & maintenance improvements Organization and training of operation & maintenance teams Step III: Stabilization by design standardization of all tools (molding & coating) Organization & training of plastic engineering & process engineering teams I: Analysis II: Quick savings Scrap rate (%) III: Stabilization Before plan Achieved Target

Trainings Step II (January 2007) Step III (March 2007) Lens line jig design & manufacturing OJT Lens line jig tuning OJT Lens molding Cleanliness in lens line Jig management in lens line IRIS Inspection and logistics in lens line Step III (March 2007) Development of tools, jigs & fixtures for lens coating Lens molds: design & maintenance improvements TPM for lens coating line Injection screw & barrel cleaning OJT

Organization Branch team Wuhan team 7 people involved (8 in January) Period in Wuhan prolonged from March 23 to 30 for 2 people in order to complete some actions Wuhan team January 26th: APU manager nominated as Division Champion February 1st: New supervisor & coating process engineer nominated March 22nd: Transfer of jig & fixture development from industrial dep to APU March 22nd: Launch of Division industrial standardization committee Proposal for improvement of part development process

Part development Many issues because part design rules are not systematically applied Why? CIP part design process not systematically applied: Formal Design Reviews (DR) Completed check lists Participation of plastic engineering Expert & specialists to DR Improvement proposals Nomination of process Specialists Tooling (L. Ma), injection (C.Y. Hu), thermoset coating (Y. Yu), lens coating (Z. Jia), metallization (F. Tang), assembly (Y. Guan) Training schedule of process Specialists by Experts Semi-monthly PEN (Plastic Engineering Network) webinars Trainings by Experts in Wuhan Launch of a Division industrial standardization committee To build a database of Division industrial standards & related part design rules Formal approval of design by process Specialists during DR Formal & systematic participation of process Specialists and Expert (J. Ortiz) Systematic review of 3D drawing according to Branch & Division design rules Formal process design rule check list signed by PE + Expert

Status per product on March 30 DPCA R23: Running at 7% scrap rate on Saico line (demonstrated on last batch March 17- 19). DPCA T21: Running at 9% scrap rate on Saico line (demonstrated on last batch on March 12). Nissan X11J: Mold ready to run with a 2% scrap rate. Fine process tuning in progress on Eisenmann line. Clear action plan, signed by each person in charge, achievable by Wuhan team alone with its present resources to start production and achieve <10% scrap rate by April 20. DPCA T11 (product to localize): Ready to run on Saico line with a scrap rate < 10%. VW B6 (new product): Ready to run on Saico line with a scrap rate <15% (17% achieved during March 26 night shift), and clear action plan achievable by Wuhan team alone with its present resources to improve down to <10% scrap rate by April 30. DPCA B53 (product to localize): Clear action plan, signed by each person in charge, and achievable by Wuhan team alone with its present resources for mold improvement, in order it is ready to run on Eisenmann line with scrap rate < 10% by May 31. DPCA T53 (product to localize): Clear action plan, signed by each person in charge, achievable by Wuhan team alone with its present resources in order it is ready to run on Saico line with scrap rate <10% by May 31. DPCA T63 (product to start): Clear action plan, signed by each person in charge, achievable by Wuhan team alone with its present resources in order it is ready to meet all customer milestones on time until SOP on Eisenmann line in July, and to run with a scrap rate < 10% by July 31.

SOP of Eisenmann line Line started with Nissan X11J Molding Coating Equipement: Defect in screw detected during cleaning – Re-machined by supplier & back on April 4 Product & process: No issue in mold (is currently running with 2% scrap rate) Coating Equipment: Commissioning not totally completed, but line available for process tuning Product & process: Good lens position found, fine process tuning in progress (IR, UV & thicknesses) Target: Complete line ready for production on April 10 Support of Branch team after March 30 P. Vottero (maintenance) in Wuhan for advices regarding line commissioning and acceptance F. Kanazawa (process) in Bobigny for checking part quality (bring back by team & sent by express mail) and advices regarding process tuning Back-up plan If targets are not achieved from March 30, F. Kanazawa will come back to Wuhan