1. Sharing Best Practices PMMAI – 25 th July 2014 Ahmedabad

2. What do we think, when we hear Indian Quality? September 5, 20152 Aesthetics Technology Long Lasting Performance Reliability Capability!! Value addition?

3. Why should I do business with you? 3

4. Current StatetoFuture State Present Assessment3-year Objective (2016) Manufacturing Capacity 1,500 machines per annum Cost reduction & product innovation Driven by FMI for self & suppliers Standard operating process (SOP) Preparation, validation & implementation by FMI Quality, Reliability & Aesthetic improvement FMI driven improvement initiatives Initiated DMAIC for improvements Territories Served India, SAARC, Middle East, Africa & USA Manufacturing Capacity 2,500 machines per annum Cost reduction & product innovation Self Initiatives from Strategic partners Vendors based adjacent/near to FMI Standard operating process (SOP) Supplier driven SOP Quality, Reliability & Aesthetic improvement Zero defect parts & improvement plans by suppliers Additional Territories Served East Europe, Latin America, South East Asia Improvements & Innovations initiated at FMI Improvements & Innovations at Strategic partners with FMI

5. Process Improvement.... A Journey Get Fast!...or Go Broke!

6. Process Improvement House

7. Organization Concerns  House Keeping not up to Expectations.  Poor Safety.  Gangways cramped with machines.  Material storage issues.  Stock Discrepancy and material damage issues.  Lack of Space.  Material stored directly on floor and at undefined areas.  Raw material yard also not organized.

8.  Higher lead times.  Lack of ownerships.  Lack of Self initiating.  Slow rate of Productivity of machines.  Fire fighting in all areas.  Inward Quality issues.  Plug & Produce index not improving. Organization Concerns

9. Goal – Operational Excellence Path – Best Practices 9

10. Modern Manufacturing Facility

11. Bring Customers closer – they are the best critics

12.  Project: “PARIVARTAN” (Change)  Objective: To Make FMIPL a World Class Organization.  Launched On: 17 th January 2012.  Sustained From : 31 st December 2012.  Progress Update :  1S Initiated from 18 th January till 31 st March 2012.  2S Initiated from 18 th April till 31 st August 2012.  3S Launched on 2 nd October 2012 & in practice.  4S FMIPL Company Standards Released on 31 st Dec. 2012.  5S In practice and self Sustaining mode from 31 st Dec. 2012. 5S

13. Parivartan - 5S Initiative Launched on 17 th Jan 12

14. 5S Parivartan AFTER BEFORE

15. AFTER BEFORE 5S Parivartan

16. AFTER BEFORE 5S Parivartan

17. AFTER BEFORE Life with “3S” 5S Parivartan

18. AFTER BEFORE Life with “3S” 5S Parivartan

19. Material Handling - Improvements AFTER BEFORE

20. Material Handling - Improvements AFTER BEFORE 5S Parivartan

21. All fixtures and spanners arranged in master base O-80 to 250 AFTER BEFORE 5S Parivartan

22. Fabrication Kit Movement Trolley AFTER BEFORE 5S Parivartan

23. Mega Cleaning 5S Parivartan

24. Mega Cleaning 5S Parivartan

25. Money Saved Year Lean Saving in INR Lacs 5S Recovery in INR Lacs Total Value in INR Lacs 201242.866.1108.9 201346.858.7105.5 2014 till Date 11.937.349.2 Year Red Tag Items Transferred Location Scraped Parts Obsolete Parts 20121227180510183 20137633499148 2014 till Date 54356TBD56 Space saved 5S Parivartan

26. Lost Time Injury Incidence Rate Good 28

27.  Project: SIX SIGMA  Objective: To Make FMIPL a World Class Organization through process driven approach.  Launched On: 5 th April 2013.  Progress Update SIX SIGMA:  First batch of Green Belt Training covered in 3 sessions for selected 26 Participants.  DMAIC Approach training as per Six Sigma methodology imparted.  8 Improvements projects identified and these are in Purchase / Assembly / Quality with a aim of improvement in processes of Procurement / Quality / Manufacturing & Productivity.  Subsequently based on the progress and implementation of these projects the Black Belt Training would be imparted and thereafter the improvement projects would be worked upon. 6σ6σ 29

28. Sr #Project TitleArea Of Project Data Reference Period in months Improvement Period in months Expected Savings in INR Lacs Actual Savings In in INR Lacs 1 Reduce variation in Actual Lead time V/S Planned Lead time Mentioned in MRP for Bought out parts Purchase / OEC / Stores Jan'12-Jun'13Aug'13-Dec'13 44.053.7 2 Reduction in Inventory and no shortages in injection cell. Purchase / OEC / Stores July'13-Aug'13Jul'13 to Dec'13 5.81.9 3Reduction in YRI hours in Injection cell.Injection CellJan'13-Jun'13Jul'13 to Dec'13 5.21.8 4Reduction in PDF of Injection cellQualityJan'12-Jun'13Jul'13 to Dec'13 3.23.0 5 Reduce electrical issues at machine run off start up Electrical CellJan'12-Jun'13Jul'13 to Dec'13 9.91.3 Final Savings68.061.7 Project Savings Expected V/s Actual Savings Achieved 6σ6σ 30

29. Value Engineering Project  MT / Nova 110 / Hydron100 = 94 Machines / Q3+Q4--2014.  MT / Nova / Hydron 150 = 135 Machines / Q3+Q4--2014.  Total Savings / Year = 229 * 8560 = Rs. 19.6 Lacs VE For MT 150 Gates & Guarding – Value Engineering of Raw material, variety reduction, Assembly Time Reduction Leading to cost saving. 31

30.  Project : TPM  Objective: To Make FMIPL a World Class Organization through process driven approach.  Launched On: 5 th April 2013.  Progress Update TPM:  First batch of TPM Training covered in 2 sessions for selected 15 Participants.  The Team comprises of Cell Supervisor/Machine Operator/Mechanical & Electrical Fitter and maintenance manager.  3 Machines and 1 Utility machine selected for the first prototype approach.  Changed the daily method of logging of stoppages on these machines and revised the breakdown maintenance logs.  Initiated the red tagging of the machine and the as per the training of 16 types of losses the tags affixed by the team. TPM 32

31. Quality

32.  ISO 9001:2008  ISO 14001:2004 Adhering to World Class Quality Standards  Export House Status Serving over 40 Countries across the World including USA Accreditations 34

33. Where are we? We are not meeting our commitments to Customers We need... deep thinking creativity determination and resolve… To go from… VALUE CRISIS to VALUE CREATION September 5, 201533

34. Make it happen! We are all an integral part of the journey! Our Role, My Role? 34

35. 35

36. WE CAN, WE WILL September 5, 201536

37. Questions? 37

38. Thank You 38