Bill Eagen EMEA Purchasing Director DELPHI AUTOMOTIVE SYSTEMS

2. Leading Global Auto Supplier

4. Global Supply Base

7. Through 1996 had implemented Quality Network Synchronous Manufacturing NUMMI Experience Crosby Quality College Joint Safety Effort and Results Past five years Focus on learning/Practicing TPS Writing own system/structure/processes Delphi Manufacturing System Common, global manufacturing system Delphi Heritage

10. 

11. Strategic Sourcing

12. Price Pressure

13. Cost Management Identify best-in-world cost Establish new and even lower level of cost Achieve best in world cost Collaborate Share savings: Improve Delphi and Supplier margins

14. International Procurement Organization Objective Convert procurement footprint to Low Cost Countries Balance APV in each region Eastern & Central Europe Asia Pacific Mexico & South/Central America Protect the Delphi Customers from quality/supply issues Tools Total Cost Analysis / Value Streams that make sense Manufacturing Footprint (future) Customer Requirements Make vs. Buy Expectations Lower current material cost Reduced cost models (target costs) to increase divisional product competitiveness Acquire export credits to support manufacturing Footprint

16. Lean Supplier Development Effective Supplier Development requires supplier and customer to: Share technology Share risk Share benefits Share accountability

17. Example