Koyo Torrington Seven Step

1. Koyo Torrington Seven Step Abel Acuña January 21th 2010

2. Data Paynter Pareto Prioritize Closure Solve Scorecard Top level Seven Step process

3. Development Process Koyo Seven Step • Supplier process “Gain Control” • Seven Step focuses supplier and SQD /SQA resources • Utilize the data effectively Pareto high impact • Establish supplier commitment to “Improve” • The supplier is part of the Value Stream within Koyo’s manufacturing operations • Standardize lessons learned • Develop a close loop • Read across commodity • Eradicate defects • Focus on prevention vs. detection in the process • Sorting alone will not achieve a stable process • Errors can occur and will escape • Integrate into the APQP model • Go back to the PFMEA and control plan and build on known risk factors

4. Development Process- Raise the bar Summary • Build accountability • It takes leadership at all levels • Protect the supply chain, while your processis being stabilized • Leverage value stream network • SQD focus is to work with other functional areas to balance the “production cell” in the value stream • Treat the supplier as if the Value Stream was within Koyo’s manufacturing plant • We are dependent on our suppliers performance to quality and service

5. Supplier 2010 Performance DMR 2008 Performance = DMR 17 2009 Performance = DMR 7

6. Supplier – NameQuality Analysis Process Pareto

7. #1 Issue – DefectPareto Level II

8. #1 Issue – Defect Root Cause Analysis - Actions -

9. #1 Issue – Defect 2007 Forecast of C/A Impact Deployed CS1 Installed Level 2 Poka-yoke Establish Predictive Tool Maintenance Schedules

10. #2 Issue – Defect

11. #2 Issue – Defect Root Cause Analysis - Actions -

12. #2 Issue – Defect 2007 Forecast of C/A Impact

13. Overall Waterfall CS1 Containment Level 2 Poka-yokes New lever packaging

14. 2007 Supplier Effectiveness Paynter Chart Corrective Action Implemented Corrective Action Not Effective Corrective Action Effective