Business Placement Process (xxxxx) April, 200x

2 D1: Charter Team Date: 8-11-xx Project Team Leader(s):Project Champion (s): Project Sponsor: Project Title: Business Placement Decision xxxxxx Project Details: Must repair the links between Sales / Comp. Eng. / Product managers quoting placement assumptions and final placement assumptions to the Business Placement Process / guidelines Business Case addressed : Eliminate errors in placement assumptions when quoting and / orcreating business cases which lead to losses in profit Key Deliverables: (Dates) Define: 8-xx Measure: 9-xx Analyze: 10-xxImprove: 11-xxControl: 12-xx Critical Milestones: Customers/ Suppliers who must be involved: Internal to the organization “Must-Dos” in terms of Project scope: Identify gaps in the currentbusiness placement decision process that causes misquoting andbad business case assumptions Things definitely not in the project scope: xxxx andxxx Business Placement Process How the Project will be Measured: Avoidance of losses in profitdue to errors in placement assumptions Jim Altier Champion(s)Deployment Champion SponsorMaster Blackbelt GreenbeltFinance (signatures to initiate project) Champion(s)Deployment Champion SponsorMaster Blackbelt Black beltFinance (signatures to close project)

3 D2: Scope Project

4 D3: Identify Customers and Requirements To avoid errors in business placement process prior to quoting. Errors cause loss in profit & wasted resources.

5 M1: Identify Project Measure (Y) Request for part Design Competition Market Request Customer Request Start the process for the customer request Sales CSAE PSG DRE Start the process for the market request Adv. Eng. Product Manger. PSG Marketing Start the process for the design competition Sales Design Request Start Center Review Product Manger. Product Eng. Start Center Co-ord. Experts Should we go forward with quote? Product timing Volume Customers Various reasons Inform BLE (Heidenrich) No Yes Is it a clone or modify an existing part? Yes ADP (Advance Develop Process) 1 Product Manager receives Product Manger. 4 Areas highlighted in yellow were problem areas in the project

6 M1: Identify Project Measure (Y) Submit to Component Eng. Supv. Assign to Component Eng. Design Part Component Eng. Submit for Comp. Asm. Est. Component Eng. Submitted to right Process Eng. or Process Eng. Estimate Co-ord. Bad Quote or Assumption begins No Component Asm. Est. Completed Yes Process Eng. I.E. Supervisor Process Eng. Forward to Cost Estimating Process Eng. Determine piece cost Cost Estimating Cost provided to: Sales, CSAE, PSG or DRE Component Eng. Cash Flow And Piece Price generated Sales, CSAE, PSG or DRE Price Reviewed PRG Approved? No Yes Quote Price To Customer Sales Customer Accepts Price? AR Generated & Submitted Yes No Proposed Department Filled in? Determine where this is to be built Component Eng. Supv. Program Mgr. No 1 2 3

7 M1: Identify Project Measure (Y)

8 4 New Part? Send quotes to region(s) for estimates (customer specified) Tool Eng./Estimate Coordinator Estimate completed using best available rates (not blended) Tool Eng./Estimate Coordinator Yes cost cards Finance No (off the shelf part) Are they competitively costed? No Price based on market value Product Manager Yes Ties to the PRG leg of the process

9 M1: Identify Project Measure (Y) Characteristic – Accuracy Operational Definition – Assure placements are made in accordance with the guidelines. Target – 0 placement exceptions made with out involving the xxx business planner up front. Defect Definition – Business placed based upon bad assumptions which leads to loss in profit and wasted resources. Name for the Measure – Measuring if the xxx Planner was involved up-front when a placement exception was made.

10 M1: Identify Project Measure (Y)

11 M2: Data Collection Plan Surveyed the users in regards to errors in the 200x time frame.

12 A1: Capability Analysis In 200x, 200 Business Placement Decisions were made, with 13 exceptions not channeled through the business placement leader up front. Consequently, these were caught in the AR process (to late). Exceptions not reviewed by Business Placement Leader have the potential to lead to improper business placement, thus loss in profit and wasted resources. In 200x the process ran at a 65,000 defects per million level or 3.01 sigma level.

13 A2: Root Cause Analysis Errors in Placement Assumptions Business Placement Component Engineering Process Engineering Sales xxx component assumptions made by xxx (wiring side) Customer directed request Quoted wrong region, tooling only existed in wrong region. Split requests from N/A and Europe. Customer directed request for S/A. Quoting a part we were recommended to buy. xxx for part, no capability in facility. Quoted N/A and China, china used different financial template. N/A request, but we could not be competitive in N/A. Product Managers xxxxx indicated he uses market based pricing. This group follows the design competition path. Design competition is not the area of most concern. Program Managers Lack of information. Call xxxxxx if you don’t know what to do. If someone does not call xxxxxx then they make a Bad Assumption. Bad Design Request. Lack of information Guess on business guidelines. Engineering bypasses him. Not as empowered as xxxxx xxxxx. At the end of the process. Manufacturing Engineering systems not as good as molding. Design request lack detail. Lack of guidelines. Not sure where the end user is, just making assumptions. Does not know the value stream for a part, hard to make good assumptions. Lack of information Customer requested Guidelines Design requests Empowerment Root causes generated from interview process of users.

14 I1: Develop Solutions  Share point developed by the NA xxx Business Placement Manager to communicate to all parties regarding available placement locations.  Centralized the Component Assembly Estimating to one person. Previously no central contact point. Lead to numerous errors.  Documented changes needed to the DR Process (Design Request). Green Belt Team (coached by xxx xxxxxxxx) will implement necessary changes upon completion of their Green Belt Project.

15 C1: Implement Solution The above link will take you to the xxx Business Placement Share point site. To the left is an example of one of the matrix’s found on the share point site!

16 C1: Implement Solution  Request for Component Design / Tooling –Revise on-line form to better enable upfront placement decision –Help direct Component Engineering to quote proper region »Use guShare Pointn Share Point site to make determination »Provide direction to Component Engineering »Avoid redundant quoting for tools and equipment  Revision Areas  Changes to be implemented in Green Project xxxxx: Reducing Lead Time for Design Requests all categories –Shipping »“Region of Component Usage” – Drop down selection (xx, xx, xx, xxxx)  Explanation of: Region component will be used in. This will be the harness assembly plant or a Customer Location if not shipped as part of a harness assembly. –Parts and Quotes / Dates and Requirements »“Quote Region” - Drop down selection (xx, xx, xx, xxxx)  Add next to “Quote Due Date” for visibility –For DRs not NA usage region - SC will forward a copy to Business Placement to verify quote region – this is a very small % of total DRs (maybe a couple per month) –For DRs NA usage region – SC will assume NA quote region –On the DR: If usage region is NA then automatically put NA in “Quote Region” if not leave blank and SC will fill in after feedback from BP rep.

17 C2: Assess Capability 200x YTD, 65 Business Placement Decisions were made, with all exceptions channeled through the business placement leader at the appropriate time (0 defects). Exceptions not reviewed by Business Placement Leader have the potential to lead to improper business placement, thus loss in profit and wasted resources. 200x YTD the process is running at a 0 defects per million level or above a 6 sigma level.

18 C3: Close Project  DBS: xxxx xx.x-x Updated.  Start Center using Business Placement Template from Share point.  DR(Design Request) format changes will drive use of Share point templates to fill in required fields.  xxx Problem Solving form