Quality Forum 2013 ASES Improvement Program 19/09/2013

1. Quality Forum 2013ASES Improvement Program19/09/2013 CSQSD Renault-Avtovaz Supplier Project Quality Department

2. 0. Content What it is ASES & Rank Up ASES Benchmark Results ASES/Rank Up Road Map 2013-2016 SWOT: ASES/Rank Up

3. 1.1. What it is ASES & Rank Up • ASES : Alliance Supplier Evaluation Standard • Evaluation of supplier Quality Management Systemand shopfloor • ASES is used for following purposes. • New supplier evaluation for sourcing • Current supplier evaluation for improvement • Common to Renault and Nissan group. • ASES result is shared between Renault and Nissan. • Scoring since 2001 based on evaluation of 5000 supplier sites

4. 1.2. What it is ASES & Rank Up ASES result rank Judgment criteria 100 A 4 Excellent (80 ~ 100) better Good 80 Result indicator (optional) 3 B Satisfactory (60 ~ 79) 60 TOTAL : 100 points Improvement needed 2 C Acceptable (40 ~ 59) 40 -Warranty 50 points -PPM 50 points -Recall camp - 20 points D Does not meet requirements 1 20 20 40 60 80 100 c b a d better Process Indicator Evaluation : 8 subjects in room (70points) 1 shopfloor evaluation (30 points) TOTAL : 100 points ASES result rank is provided as A, B, C and D rank shown as above chart.

5. 1.3. What it is ASES & Rank Up In-room evaluation Renault / NISSAN explanation screen Supplier OHP Supplier Documents (Standards, Procedures , Files etc.) Shopfloor evaluation What is evaluated ? ASES is structured by following 9 chapters 1. Quality Management by top management 2. Analysis of defects and recurrence prevention Certification and internal audits Warranty Information analysis / Cause analysis/ Prevention of reoccurence 3. Quality target setting for new project 4. Project management at design phase Design review / Design FMEA 5. PFMEA & Control Plan Process FMEA / Control plan 6. Project management at pre-production phase 7. Ramp-up 8. Change management – Process / Product 9. Sub supplier control 8. Shopfloor Control of start-up & equipment condition Training Management of NG parts (rule, rework, mixing) Management of unusual situations Safety characteristics Continuous improvement in shopfloor critical item with demerit, based on past experience

6. 1.4. What it is ASES & Rank Up • What is Rank up activity • Activity to improve D rank suppliers to C rank suppliers (improvement to B for Excellence Plan and risky suppliers) • Joint Activity by Supplier and R/A（led by Supplier） 4 A ・A rank　：　Excellent ・B rank　：　Satisfactory ・C rank　：　Marginal ・D rank　： Does not meet R/A requirements Rank-up 3 OK B 2 C D 1 c b a d

7. 1.5. What it is ASES & Rank Up Basic schedule Purchasing dept Sourcing decision Candidate suppliers RFQ Rank up Kick off meeting With supplier & Contract sign off Review meeting to decide on possibility of rank up Rank up possible Rank up Activity start SOP SQA & supplier A B C Rank-Up Activity Re-ASES OK ASES Rank-Up achieved A B C Action Action Action D Kick-off Follow up#1 Follow up#2 D 4～6 months

8. 2. ASES Benchmark Results* *April 2013

9. 3. ASES/Rank Up Road Map 2013-2016 2013 AB Ranking

10. 4. SWOT: ASES/Rank Up

11. Thank you for your attention!