1. 1 Delphi Proprietary Label Quality Assurance Matrix Training

2. 2 Delphi Proprietary What is a Label Error ? u Incorrect Part Label u Missing Part Label u Incorrect Shipping Label u Wrong Quantity on Label u Missing Shipping Label u Mixed Parts u Incorrect Label on Individual Containers u Mixed Containers u Mis-Sequenced - Container u Problems Reading Bar Code Label

3. 3 Delphi Proprietary So you think labeling is unimportant?

4. 4 Delphi Proprietary So you think labeling is unimportant?

5. 5 Delphi Proprietary So you think labeling is unimportant?

6. 6 Delphi Proprietary So you think labeling is unimportant?

7. 7 Delphi Proprietary Label Errors What’s the Problem? u Most Frequent Supplier Problem u Biggest single cause or R/RPPM u Lean Manufacturing –Small containers = more containers = more labels –Less inventory = more disruption when parts are wrong u Customers Are Passing Costs and Penalties on to Suppliers u Labels errors are a ‘common’ error between divisions. Customer sees us as Delphi so label errors ‘seem’ to repeat.

8. 8 Delphi Proprietary Effect of Mis-labeled Material on Assembly Plants u In an Assembly Plant, there are –1,000 cars built per day –3,000 part numbers per car –50 parts per container –60,000 containers u One Customer’s Actual Experience –3 Assembly Plants had 152 minutes of downtime due to mis-labeled material for 2 month period –Assembly Line Cost = $1,000 / minute –Annual Cost per Assembly Plant = $304,000 »Does not include cost to make up vehicles

9. 9 Delphi Proprietary A Real Life Label Error Example u The Problem: –Recent News Story: For 2 months, Surgical tools in identified hospitals were washed in hydraulic fluid u The systemic root cause: Lack of material control/Labeling error u How did it happen? –Hospital elevator workers drained and stored hydraulic fluid into empty soap containers. They did not change the label on the container. The solutions were of similar color. u Effects: –Medical staff complained of surgical tools feeling slick. Did not know the root cause right away. –Once detected, patients were assured that the mix-up created little chance of medical problems. However, one federal agency determined that the error had endangered patients. –State investigators cited hospital/elevator company, but they didn’t view it as serious. u Immediate Corrective Actions: –Hospital officials said the instruments that had been washed in the hydraulic fluid, were then run through a steam bath for sterilization. –Infection rates were monitored. No increase observed when the hydraulic fluid was used. u Long term systemic corrective action??? Do not have the 5-Why to examine. u LABEL and Material Control are IMPORTANT

10. 10 Delphi Proprietary “F” Exercise The necessity of training farm hands for first class farms in the fatherly handling of farm live stock is foremost in the minds of farm owners. Since the forefathers of the farm owners trained the farm hands for first class farms in the fatherly handling of farm live stock, the farm owners feel they should carry on with the family tradition of training farm hands of first class farms in the fatherly handling of farm live stock because they believe it is the basis of good fundamental farm management.

11. 11 Delphi Proprietary “F” Exercise The necessity of training farm hands for first class farms in the fatherly handling of farm live stock is foremost in the minds of farm owners. Since the forefathers of the farm owners trained the farm hands for first class farms in the fatherly handling of farm live stock, the farm owners feel they should carry on with the family tradition of training farm hands of first class farms in the fatherly handling of farm live stock because they believe it is the basis of good fundamental farm management. 36

12. 12 Delphi Proprietary Label errors are a huge customer dissatisfier Label errors are costly to customer and supplier People make mistakes ‘Labeling’ process must be robust enough to prevent label errors from happening or from going to the customer. Review

13. 13 Delphi Proprietary Label Quality Assurance Matrix

14. 14 Delphi Proprietary

15. 15 Delphi Proprietary What is a Label Error ? u Incorrect Part Label1 u Missing Part Label1 u Problems Reading Bar Code Label 2 u Wrong Quantity on Label3 u Mixed Parts4 u Mis-Sequenced – Container4, 5, 6 ? u Incorrect Shipping Label 5, 6 u Missing Shipping Label 5, 6 u Incorrect Label on Individual Containers 5,6 u Mixed Containers 6 u Missing or Incorrect Information on Label u Multiple or Duplicate Serial Numbers 1. Part ID Matches Part 2. Part ID & Container Label Quality 3. Count Parts 4. Pack Same Parts Into Container 5. Print Container Label 6. Print & Apply Container Overlay Label 7. Build Pallet 8. Label Pallet (master, mixed)