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Razvan, Exhibit 109: M’l Inflation Containment

Razvan, Exhibit 109: M’l Inflation Containment. Razvan, Net Material Inflation. ATX Procurement – Key Initiatives FY09. New Sourcing Team Organization ATX (Amiens & Cluj) – based on commodity

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Razvan, Exhibit 109: M’l Inflation Containment

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  1. Razvan,Exhibit 109: M’l Inflation Containment

  2. Razvan,Net Material Inflation

  3. ATX Procurement – Key Initiatives FY09 • New Sourcing Team Organization ATX (Amiens & Cluj) • – based on commodity • Cost Reduction - Vendor price renegotiation – Ex 109 • - Sourcing projects - Ex120 • Inventory Reduction: - Renegotiate MOQ • - Reduce Lead-time • Delivery & Quality Performance Measurement • - OTD & PPM monthly tracking and vendor follow up • Contract coverage • - New vendors & Top 30 vendors

  4. Procurement Org Chart – ATX Amiens&Cluj Steven Call EGS Sourcing Director Rick Holley Operations Director Amiens, FR Ion Goia Plant Manager Cluj RO Razvan Danciu European Sourcing Mgr. Plastics&Rubber Catalina Bumb Casting&Stamping Jennie Crabot Electrical Caroline De-Bruyne Packaging, Glass&Others Denotes location: Dominique Nicolas MRO & Indirects Amiens FR Cluj, RO New Sourcing team - Reorganized by commodity

  5. ATX Top 30 vendors – Plan of attack

  6. Vendor Annual Negotiation - Yield Positive Results • Metal renegotiation - Casting & Stamped pats • 40 K € achieved with casting vendors Superkino and Capell • Ongoing negotiation • - Stamping parts: ZLKL, Mopos, Koopron • - Plastic molding: SIP • Potential upside 35K €

  7. Supplier Delivery Performance Metrics Implemented! OTD Target => 90 % • Action plan –OTD% Improvement • Communicate and review delivery performance with ATX vendors

  8. Supplier Quality – PPM Rejected • ATX Supplier PPM Rejected – Last 6 months Target = 500 ppm

  9. Raw Inventory Reduction Activities Working the top Supplier and Part Number issues

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