TOOL MANAGEMENT INTRODUCTION

1. TOOL MANAGEMENT INTRODUCTION

2. Organization TM Project Introduction TM Project I Service Center

3. Tool Flow Information Flow Structure of Technological Tool Management Logistics Customer’s Production Schedule • Schedule • Purchase • Stock Management • Cost Allocation Scrapping Tool Stock Tool Setter´s Room Production of Customer ToolBoard ServiceCentre Disassembly/Valuation Transition of used Tools • De-coating • Regrinding • Recoating • Modifications • Repair Tool Stock Tool Board New Tools Assembly/Tool Setting Transition of newTools GühringOrganisation Process Optimisation Customer´s internal technological Production Support • ABC-Analysis of Tooling Costs • Analysis of non- stable Processes • Action Plan • Monitoring of Actions and Results • Tool Optimisation • Application Engineers • R&D • Test Area Customer’s Responsibility Responsibility Gühring TM Production Site Customer 09-11-008e Dr. Lang

4. Training of the Employees Tool Purchasing Stock Management 100% Incoming Inspection Technical support of the customer Tool optimizing Cost optimizing Reporting Tool presetting/tool circulation regrinding/recoating in the service center Communication with the customer (e.g. tool wear cards/meetings etc.) Tasks of the TM TM Project Introduction

5. Training of the Employees TM Project Introduction •  During starting up a new TM Project • Engineers get training from experienced German tooling engineer during start up of the TM project • Tool setters get training from experienced German tool setters during start up of the TM project • Tool Manager, Stock Keepers, Purchasers and Administrative Staff are trained by the Project Manager • It is always possible to get support from experienced trainers in Guehring Changzhou or in Guehring Germany. There are also experienced tooling engineers and tool setters in the TM projects in China which are available for supporting new projects

6. Training of the Employees TM Project Introduction •  While the TM Project is running • Weekly trainings held by the Tool Manager. Mostly review of actual problems, solutions and work organization issues with the target of continuous improvement • Monthly trainings held by the Tool Manager and Project Manager. • Review of different actual issues • Special trainings held several times per year by German experts or by experts from Guehring Changzhou. Mostly training for special tools, e. g. PCD/CBN tools, taps, which tool is the best for a special application etc.

7. Training of the Employees TM Project Introduction •  While the TM Project is running • Trainings in cooperation with technical schools are held several times per year. Exchange of theoretical and practical knowledge, possibility to select qualified and suitable future employees • Weekly safety trainings including review of actual safety issues

8. Tool Purchasing TM Project Introduction • TM Software indicates when minimum stock is reached • Stock Keepers monitor the tool status. If minimum stock is reached, stock keepers fill in a “pre-order-list” and pass it to the responsible tooling engineer • Pre-order-list is confirmed by tooling engineer and passed to purchaser • Purchaser is making inquiry (normally from at least 3 different suppliers for first time orders) • After getting the quotations purchaser is choosing the supplier • Purchaser is getting confirmation (signature) of tooling manager • Tools are ordered • Orders are updated and tracked in the TM Software

9. Stock Management TM Project Introduction • Most of the tools are stored in a “Kardex” lift. • Stock management over Guehring TM Software. • The Kardex lift is controlled directly by the TM Software. • Each stock movement is recorded in the TM data base. • The costs for each withdrawal are allocated correctly. • TM-Software indicates when the minimum stock is reached. The minimum stock is set up according to tool life, production volume and delivery time. • Orders are tracked by the TM software.

10. TM Project Introduction Stock Management Assembled Tools Stock Spare Parts Stock Assembled Tools Stock Kardex Lift (Tool Stock)

11. Incoming Inspection TM Project Introduction • 100% of the incoming tools are inspected. Exception: tools reground in the service center. These tools get a 100% outgoing check and are delivered with the checking report. • Visual check and measuring of the tools.

12. Incoming Inspection TM Project Introduction • Inspection drawing available for each tool. Checking criteria is clearly marked. • Measuring results for each tool are recorded in a inspection report. • Documentation of the incoming inspection by punch and signature of the inspector on the delivery note. Inspection Drawing Inspection Report Delivery Note

13. Technical Support TM Project Introduction • Tool Optimization • Problem Feedback List: • Each problem that appears during the shift is recorded by the Guehring engineers in a “problem feedback list” • Daily “problem review meeting” with Guehring’s and customer’s engineers • If possible immediate problem solving with settling of the root cause. If immediate solution not possible: • follow up in the “monthly working plan” (see next slide)

14. Technical Support TM Project Introduction • Tool Optimization • “Monthly Working Plan”: • Weekly review and follow up of the status of open issues • Support from Guehring Changzhou available at any time • Support from Guehring Germany available at any time • Communication with external suppliers and organization of their support if necessary

15. Technical Support TM Project Introduction • Tool Optimization • Tool Tests/Replacement of Tools: • Written agreements with suppliers • Get the customer’s written approval for the test • Conduct test according to the “Tool Test Process” • Test results are recorded and followed up in the “Tool Test List” • Results are reported to the customer • If the test results are positive, Guehring will apply for the replacement of the tools and the corresponding documents

16. Technical Support TM Project Introduction • Cost Optimization • “Top20 Tooling Cost List”: • Tool Cost “Top20” are listed monthly • Tool Manager and engineers follow up the “Top20” list and make action plan for cost reduction • Planned and target oriented follow up of the action plans and monthly review

17. Technical Support TM Project Introduction • Reporting (monthly): • Tool Cost per Part • Tool Cost Top20 and action plans • Stock Situation • Tool Consumption List • Abnormal Tooling Consumption

18. Technical Support TM Project Introduction • Tool presetting & tool circulation • Tools are withdrawn from the stock • Tools are assembled and set up • Collect measuring data in the pre-setting machine. Print out two set-up data labels: one on the tool, one in the tool setter’s book. • Tool is sent to the assembled tools stock or directly to the production line • Tools are used in the production • After using the tool, the machine operator fills in the “tool wear card” • Tool and “tool wear card” are collected and sent back to the TM room. Wear data for each tool is recorded in the TM software’s database • Tools are inspected • According to the status tools are set up again or disassembled and cleaned • Worn out tools/inserts are replaced

19. Technical Support TM Project Introduction Trolley for tool delivery, Tool wear card on used tool Trolley for tool delivery, Tool wear card on used tool Tool Presetting Tool Presetting Above: set-up data label Left: Wear Data Terminal: Input the wear data from the tool wear card Crank Grinding Wheel Assembly

20. TM Project Introduction Regrinding & Recoating  Example: Service Center set up in Liuzhou for the TM Project in SGMW  Equipment: • Two 5-axis CNC grinding machines • One circular grinding machine • One coating machine Guehring BA170.

21. TM Project Introduction Regrinding & Recoating • Used tools are collected separately in the TM stock room after coming back from the production line • The tools are sent to the service center regularly • After receiving, QC is checking each tool’s status (some tools cannot be reground, e. g. the tool is already too short, diameter already too small etc.). Disqualified tools are sent back to TM for disposal, qualified tools are put into the service center’s stock • According to the quantity of used tools in stock and the requirement of the TM, a production plan is made and agreed between the TM and the service center • The tools are reground and recoated according to the production plan’s sequence. If there are any deviations TM is informed immediately • 100% of the finished tools are inspected by QC • Tools are sent back to the TM

22. TM Project Introduction Regrinding & Recoating Advantages of the service center:  All carbide tools used in the TM project can be reground and recoated in the nearby service center. • Short delivery time • Direct and daily communication between service center and TM project • Direct influence on the production plan of the regrinding center, e. g. very urgent tools can be made immediately

23. Communication TM Project Introduction • Communication with Production Line (operators & line leaders) • Daily “morning meeting” of Guehring tooling engineers with the customer’s machine operators and line leaders • Machine operators write down tool wear data for each tool on the “tool wear card” • Communication with the customer’s tooling engineers: • Daily “morning meeting” in Guehring’s TM office • Weekly meeting in TM office • TM Software and other important information accessible for customer • Communication with customer’s management: • Tool Test Applications • Tool Test Reports • Tool Changing Applications • Monthly reports • Monthly meeting

24. Honor from China Outsourcing Association