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Commodity Review Meeting

Commodity Review Meeting. ALEJANDRO RAMIREZ Castings – Aluminum / Zinc October 19, 2007. Key Performance Indicators. Business Strategy. Breakdown Current Buy Major suppliers – Berntsen (WI) - $2,586 / year - 176 SKU’s Alloy DC (CA) - $2,400 / year - 39 SKU’s

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Commodity Review Meeting

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  1. Commodity Review Meeting ALEJANDRO RAMIREZ Castings – Aluminum / Zinc October 19, 2007

  2. Key Performance Indicators

  3. Business Strategy • Breakdown Current Buy Major suppliers – Berntsen (WI) - $2,586 / year - 176 SKU’s Alloy DC (CA) - $2,400 / year - 39 SKU’s Diecasting Mex (MEX) - $1,603 / year – 100 SKU’s MMR (China) - $1,702 / year – 19 SKU’s • General Strategy • Bid locally (Mexico) • Explore best cost country options (India/China) • Transfer low demand parts to sand casting • Opportunities on cost savings / DPO improvement • Implementation of kanban with suppliers • Purchase parts complete (machined and painted) • Improve logistics and inventory cost (Sourcing Decision Tool)

  4. Key Suppliers

  5. Major Business Initiatives Alloy Die Casting Project Summary Current Buy – Alloy DC (CA) - $2,400 / year - 39 SKU’s • General Strategy • Bid in USA,Asia and Mexico • Explore BCC options (India/China) • Parts to be quoted raw and complete • 7 P/N’s moved from die-casting to sand-casting based on technical criteria, meeting was performed at Rosemont with the team. • An ES Event scheduled – Time line 10/26 – get all Off shore quotes from suppliers 11/02 – Price comparison analysis due to group including preliminary RFQ 11/09 – Team submits feedback on comparison analysis and RFQ 11/30 – Propose market baskets for auction 12/14 – Issue RFQ to suppliers 1/30 – Run e-Sourcing event • Preliminary market baskets defined with CO High Volume-CO Low Volume-CO All-CO and AT All-AT

  6. Major Business Initiatives Alloy Die Casting • Consolidate • Pentacast – spend FY07 / $215K – CO • Alpe – spend FY07 / $415 – CO Include $1.0 M for new tools • Identified suppliers based on capabilities Pace Chihuahua (MEX) • Allcast (WI) • Le Sueur (MN) • Sigma (India) • Elite Mould (China) • Risk • Completion tooling repair or replacement • Continuity of supply during supplier transition • Opportunities • Potential for inventory/logistics savings • Total Supply Chain Impact • Logistics/Inventory (Sourcing Decision Tool) • DPO – Current - Mode 5th 3rd / MPC 5th 3rd

  7. Major Business Initiatives Die Casting Mexicana Project Summary Current Buy – Die Casting Mexicana (MEX) - $1,603 / year - 100 SKU’s • General Strategy • Parts to be quoted raw and complete • Bid in Mexico • Replace/Repair toolings - $450K spend in FY07 (8 new molds and trimming dies) and $320K planned spend in FY08 • Get a supplier who includes the aluminum ingot • ES Event scheduled 1Q/08 • Identified suppliers based on capabilities • Compacto Metal • Mitec • Quezada • Amisa • Adak • Alpe • Risk • Completion tooling repair or replacement • Continuity of supply during supplier transition • Opportunities • Avoid risk due to supplier financial situation • Savings on piece price • Total Supply Chain Impact • Logistics/Inventory (Sourcing Decision Tool) • DPO – Current - Mode 5th 3rd / MPC 5th 3rd

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