Case Study Large Automotive OEM – FMEA Managed Service Failure Mode & Effects Methodology Process Flow Block Diagram Customer Requirements Design Inputs Process FMEA System FMEA Control Plans Shop Floor Checklists © 2010 Omnex Inc 2 Automotive OEM – FMEA Managed Service Design Failure Mode and Effects Analysis -- Distribution of Recommended Actions After AQP Before AQP Process Issue 13% Other 5% Analytical / Math 12% Verification / Testing 13% Physical Test 10% Review, Investigate, Evaluate 48% SSR 11% Analytical 9% Design Change 7% Supplier 6% © 2010 Omnex Inc Benchmark 20% Monitor 2% Process Escalation Review 1% 3% Design Improvements 40% 3 Initial Quality of U.S. and Import Brands 1999-2010 Note: Import Brands Include Europe and Asia Case Study Large Aerospace Engine Manufacturer New Product Introduction & PPV Program Start Experimental Product & Process Planning Production PPV Activities Consolidation Planning Product Design and Dev. Ongoing Part & Process Control Process Design and Development Industrialization Product and Process Validation Production Corrective Action Board activity Plan & Define Program © 2010 Omnex Inc Product Design & Development Verification Process Design & Development Verification Product & Process Validation CAB Activity 6 Large Aerospace Engine Manufacturer • Conducting PPV (Product and Process Validation including FAI) training and facilitation for internal resources and 200 suppliers • Rollout PPV to ensure product and process conformance for all new products • Currently in initial stages – 10% to 30% improvement expected in RCNs Case Study Truck – System Supplier Operations Excellence MANUFACTURING Materials FUNCTIONAL EXCELLENCE Purchasing Quality 6S/VISUAL WORKPLACE Team Skills FOUNDATIONAL EXCELLENCE © 2010 Omnex Inc QOS Global 8D TS16949/APQP/PPAP 9 Truck Industry Large Sub System Provider 187 DPM Improvement Before After Comments Quality Rejects measured in percentages 3 Years – 187 PPM Implementation of APQP and PPAP internally and with Supply Base Semiconductor Industry Transition Semiconductor Assembly Council – Representing 95% of Chip Industry Outside Japan Semiconductor Industry Methodology 8-D Customer Involvement Similar to Aerospace Industry MSA, SPC, and Process Control ISO TS 16949 plus APQP and PPAP © 2010 Omnex Inc 12 Customer Driven Changes: 1998 to 2004 • Productivity improvements: 10% – 30% – Equipment – People • Yield improvement – Subcontractor yields improved to 99.6% • Performance to schedule improvement – Consistently sustaining 100% • Number of customer complaints decreased – Up to 15x reduction • PPM improved by over 100 times to under 30 PPM © 2010 Omnex Inc 13