Material Cost Management Ron Lenders Suppliers Partnership for the Environment

Material Cost Management Continuous Improvement – Current Focus Value Analysis (VA) Workshops Brainstorming Activities Lean Assessments Lean Production Workshops Blank Development and Optimization

Key Activities Key Activity Metrics Request edCompleted Scheduled Sched. This Week Completed Last Week Brainstorming Activities00000 Value Analysis Workshop Value Engineering Workshop Lean Assessments Lean Workshops21100 Other Workshops00000 Total

Facilitator / Commodity Facilitator/Commodity Area Summary BIWChassisElectricalExteriorInteriorPowertrain GSP / OtherTotal Dostal Hendricks Martin Olson Schmitt Total

Key Results Metrics Total Entered in MCM Database$9,902,914$87,788,171$97,691,085 Idea Generated$1,158,449$17,926,696$19,085,145 Active$3,299,827$15,045,599$18,345,426 Approved$885,342$2,093,545$2,978,887 Booked - Total$4,559,296$52,722,331$57,281,627

Material Cost Management Continuous Improvement – Future Focus Value Engineering (VE) Workshops Paper Kaizen Advantages: Optimize Design Optimize Manufacturing Process No Incremental Investment Required Support MCM Long Term Strategy 2005 – 2007 CY

Value Engineering Pre-production analysis and improvement of design for engineering, quality and manufacturing. Methodology is applied prior to capital expenditure on facilities, equipment or tooling. Prevent unnecessary cost. * Cost Avoidance* Packaging Resolution * Cross Vehicle Strategy* Extended Enterprise Synergies * System Integration* Proactive Resolution of Issues * Improved Quality* Education / Communication

Paper Kaizen Analysis of plant layout / cell prior to purchasing capital equipment. Establish 'LEAN' Processes prior to capital expenditure on facilities, equipment or tooling. Prevent unnecessary cost. Optimize manufacturing process and balance of workloads. Improve Processes for Cost, Quality, Delivery, Ergonomics & Manufacturability Establish Lean Principles & Continuous Improvement Culture in Extended Enterprise

Value Analysis Focus on optimizing current design to remove unnecessary cost. Piece Price Reduction Improved Quality Increased Function / Feature System Integration Extended Enterprise Synergies Education Communication

Kaizen Analyze plant layout / cell of current production parts. Establish 'LEAN' processes on current manufactured products. Decrease Lead Time, Waste, Floor Space and Excess Handling Support JIT / SPD Delivery Programs Establish Lean Principles & Continuous Improvement Culture in Extended Enterprise

Continuous Improvement Next Steps Any Requests for Future Continuous Improvement Activities – See any of the following: Ron Lenders – – Any member of the Continuous Improvement Team: –Ed Martin – – –Rita Hendricks – – –Fred Dostal – – –John Schmitt – – –John Olson – –