2017 YFAI Supplier Expectations Day · however, the formal award presentations will take place...

2017 YFAI Supplier Expectations Day N.A. Region

March 9, 2017

2

.

• Logistical Items:- Safety Exits - All clearly marked at various points around the room.

- Cell Phones – To avoid disruptions, please turn off or switch to vibrate

- Rest Rooms – Located in the rotunda area

- Q&A session will be at the conclusion of the presentation

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- Supplier award recipients will be briefly acknowledged this afternoon, however, the formal award presentations will take place tonight at the Amway Grand Plaza Hotel - Pantlind Ballroom

2016 Supplier Awards and 2017 Expectations Day

2016 Supplier Awards and 2017 Expectations Day Agenda

Welcome & Logistics Scott Vanderhaar 01:00 - 01:10

Opening Remarks Jim Bos / Wang Tao 01:10 - 01:252016 Award Recipients Recognition & 2016 Performance Results Jeff Sweitzer 01:25 - 01:40 Global Business Strategies Bob VanHimbergen 01:40 – 01:55Voice of the Customer – Ford Global Interior Purchasing Lisa Drake 01:55 – 02:20Break 02:20 – 02:35Innovation Trends and Supplier Involvement David Muyres 02:35 – 02:552017 Supplier Performance Expectations Wayne Witter 02:55 – 03:052017 Indirect / Capex / Tooling Expectations Todd Harig 03:05 – 03:15Supplier Development / Supplier Quality Matt Macek 03:15 - 03:25 Risk Management Scott Postma 03:25 – 03:35Break 03:35 – 03:45

MBBP / Continuous Improvement Manuel Fernandez Gonzalez 03:45 – 04:05

Industry 4.0 Michael Schachler 04:05 - 04:20 North American Business Strategies Nathan Bowen 04:20 - 04:35Program Management Bryan Nyeholt 04:35 – 04:45Legal Compliance Requirements Will Kramer 04:45 – 04:55Questions & Wrap-up Jeff Sweitzer 04:55 - 05:00

Opening Remarks

2017 YFAI Supplier Expectations Day NA Region – Mar 9, 2017

James Bos – Vice PresidentWang Tao – Vice President

5

Industry Leading Shareholders

Source: Company Information. Data as of November 1, 2016.Note: 1. By 2015 revenue. 2. On July 2, 2015, Adient completed its global automotive interiors joint venture with Yangfeng Automotive Trim Systems and deconsolidated the contributed interiors business since that date. 3. Segment income is defined as income before income taxes and non-controlling interests excluding net financing charges, restructuring and impairment costs in accordance with U.S. GAAP, and net mark-to-market adjustments on pension and postretirement plans. 4. SAIC motor has a public float of 15.6% and HASCO has a public float of 39.5%.

Largest OEM in China

LargestAuto-parts Supplier in China

#16 Largest Globally1

Market Cap

Market Cap

Market Cap

Financial Profile of Shareholders

(HASCO)

US$38.6bn

Debt

US$15.6bn

Cash

US$13.2bn US$47.6bn

Enterprise Value

Sales Volume 2015

4.9mm units

Revenue in 2015

US$105.8bn

Net Income in 2015

US$4.7bn

US$7.7bn

Debt

US$1.5bn

Cash

US$4.0bn US$6.3bn

US$5.5bn

Debt

US$3.6bn

Cash

US$610mm US$4.4bn

Revenue 2015

US$14.5bn

EBITDA in 2015

US$1.0bn

Net Income in 2015

US$0.8bn

LTM Revenue

US18.1bn2

LTM EBITDA

US$1.5bn3

LTM Segment Income

US$1.2bn3

Enterprise Value

Enterprise Value

Listed on Shanghai Stock Exchange4

Listed on Shanghai Stock Exchange4

Listed on New York Stock Exchange

70% 30%

100%

60%

(HASCO)

Largest Seating Company

Globally

#27 Top Automotive Supplier

6

90+ Global Locations

Yanfeng Automotive Interiors – Global Company Overview

North America

24 – Locations

10,000 – Employees

Europe

13 – Locations

6,500 – Employees

Asia Pacific

56 – Locations

11,000 – Employees

17Countries

~28,000Global employees

1Seamless global network

7


Americas

28 Locationsaround 12,000+ Employees

Europe & South Africa


Asia Pacific


18Countries

33,000Global employees

1Seamless global network

Global HQ

Regional HQ

Tech Center/Innovation center

Plant/office

Business CenterUp to Dec. 2016

Footprint of the facilities highly matched with customers

8

<<<<<<<<<

Yanfeng Automotive Interiors2017 Priorities

• Execution Excellence

• Internal Restructure

• Deliver on Program Launch and Production Requirements

• Innovation

• Meet the Demands of the Accelerated Pace of Interior Design Changes

• Differentiation in Product and Process

• Sustainable Growth / Continuous Improvement

• Lean Methodology / Total Business Approach

8

9

Yanfeng Automotive InteriorsDevelopments over the Past Year - Procurement

• Completion of Procurement Level 2 Procedures Globally• Completion of one Global Supplier Standards Manual, Supplier

Assessment Survey, Supplier Award Process• Strengthened Global Sourcing Board ( weekly )• Established Global Risk Management Process• Decision to integrate Supply On as Global Procurement Solution• Achievements in Supplier Performance – SPPM results better than

targets in each Region• Business Integration of Fountain Inn, BJC, and Malaysia Operations • Continued progression of Materials Best Business Practice

Global Structure with Regional Execution

10

Yanfeng Automotive Interiors Global Spend - 2017

Metals

Plastics

Chemicals

Resin

Electronics

Trim & Foam$422

$46

$172

$549

$147

$872

AP

EU

35%

15%

54% NA

Controlled Material Spend $2.2B

Total Spend $7.46B USD

Capital and Indirect Spend

NA EU AP Total

Direct C 629 262 1,317 2,208

Direct OE 911 432 2,236 3,580

CET 340 150 79 569

Indirect 410 160 232 802

Logistics 98 52 55 205

IT 100

29%

12%59%

18% Increase in Controlled Spend

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YFAI Global Procurement Framework

Objectives

Product Business Support

Commodity and Cost Understanding

Support Infrastructure anBusiness Model

Objectives

Setting targets and Key P

erformance M

etrics ( KPI )

MBBP /Cost Modeling

Supplierrelations/ mgmt

Commodity strategy

People development, training, resource planning and capability requirements

Negotiating + managingproposals / contracts

Launch support

Under-standing Business Strategy + Planning mgmt(Innovation)

Transactional Processes & Systems Support

Strategic IT( Buyer Efficiency )

People Development

Organization and Decision Rights

Supplier DevelopmentGlobal supply

base strategy

Supplier development

(Pre-award to launch)

Operationssupport

Global Procurement Framework

“Optimal Procured Value, Most Globally Capable Suppliers”Mission

Global Procurement Framework continues as Global Structure

Congratulations to the 2016 Supplier Award Recipients

YFAI SUPPLIER EXPECTATIONS DAYMarch 9, 2017

2016 Supplier Award Recipients

Jeff Sweitzer- N.A. Procurement Director, BU

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2016 YFAI Supplier Excellence Award Recipients

Supplier Excellence - Quality� Everwill Industrial Ltd.

Supplier Excellence - Service� US Farathane Corporation� Grupo Logico / CMAC� HFI, LLC.

Supplier Excellence – Technology & Innovation� DNP America, LLC.

Supplier Excellence – Customer Satisfaction� Williamston Products, Inc. � Canadian General Tower� LG Hausys� ITB Packaging LLC.

� Circle Five Tool� TK International� Elwood Staffing Services

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2016 YFAI Distinguished Supplier Award Recipients

� Armada Rubber Manufacturing Co.� Display Pack, Inc.� A&K Finishing, Inc.� Acoustek Nonwovens� GDC, Inc.� Haartz Corporation� Burnex Corporation� E&E Manufacturing� JD Norman Industries

� Team 1 Plastics, Inc.

16

2016 YFAI Supplier of the Year Award Recipients

� MultiTech Industries� American Autocoat, Inc.


2016 Performance Results

Jeff Sweitzer- N.A. Procurement Director, BU

18

Supplier Expectations Day - 2017What Did We Expect in 2016

Quality PerformanceZero PPM, Zero PPSC´s

Flawless Execution and Delivery Efficient procurement and communication solutions Correct parts in the correct quantity to the correct plant at the correct time with correct qualitystandards !

Best Cost Position from our Supply BaseCommercial Openness with Competitive Cost Structure and Customer Oriented Footprint • MBBP execution• Pursuit support New Business Awards - $662M business target for Interiors

Launch performanceSuperior Launch Execution Capabilities to achieve 0,0,0,100,900PPM, 0 Safety Incidents, 0 Delivery issues, 100% Financial Target, For 90 days

Expectation of our Customers (Internal & External):Suppliers are an extension of YFAI !

19

2016 Performance Results How Did We Do? KPI Executive Summary North America

Key Measure Goal Actual Comments

Pursuit Quotes 100% 83.21% 1,054 quotes submitted, 877 received on timeNew Sales $662M $771M Pursuit exceeded sales goals. Thank You !

PPSC 0 0 Thank You !Combined Supplier PPM 20 15 FY15 = 11 PPMControlled Supplier PPM 20 11 FY15 = 10 PPMDirected Supplier PPM 20 38 FY15 = 19 PPM

Sourcing On Time > 95% 96.50% Expectation is 100%IRIS Supplier Chargebacks > 95% 97% 90 Days or less resolution

Delivery (DMR's) 100% Expectation is 100% On Time Delivery0,0,0,100,90 100% 60 Programs; 29 Launched in CY16

PASS

FAIL

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Pursuit

• Timely turn around for quotes.

• Call out assumptions

• Drive for critical information

• *Best Cost* (up front)

• Cost Reduction Ideas Up Front !

• How Can We Do It Better ?

Sourcing

• Review SSOW’s for critical data and accuracy.

• SSOW & Quote timeliness tracking

• SSOW’s to include: Production capacity, MOQ, Lead Times

• Provide accurate detailed quotes for piece price and tooling with break down including LTA or in MBBP model.

• Sign and return award letters, SSOW in a timely manner.

Launch

• SDT participation

• Engineering & Tech Solutions

• Capable, repeatable and sustainable process

• Communicate timing plan for tools, first parts, PPAP

• Packaging designs

• Early / Multiple Run@Rates

• Capacity studies

• Escalate issues

Production

• 0,0,0,100,90

• EDI Capable (MUST)

• EDI Testing Earlier

• Support VAVE activity

• Participate in post launch audits 90 days after launch.

• Support model validation activity for MBBP

• Support CI Workshops

Supplier Expectations Day - 2017Areas We Touch and How Do We Improve ?

Must Execute, Execute, Execute in ALL AREAS


Yanfeng Automotive InteriorsBob VanHimbergen – CFO

Global Business Strategies

22

Vision

• Better life on board through superior automotive interior solutions.

Mission

• To bring our vision to life, we’ve made it our mission to be our customers’ preferred

partner for automotive interior solutions.

• We will do this through our global capabilities and partnerships, imaginative and cost-

effective innovations, and execution excellence. The basis for our success will be our

people; a committed global team with a passion to shape the future of the interiors

industry and deliver sustainable, superior value.

Vision and Mission

23

Global scale Innovation Expertise Customer Focus People & Processes

At YFAI we are increasing the speed of transformation with the goal of providing new on board experiences.

24

Global Leadership Team

Quality

Program Management

Global Operation

Procurement

James BosWang Tao

Customer Gives Us the Order

With strong global capabilities, YFAI was able to enhance customer

relationships

We are recognized as YFAI by our customers.

Exceed Customer Expectations

Customer

战略聚焦Business Focus Customer Product PeopleBusiness Focus =

26

Diversified Customer Base, Matching Global FootprintTop Customers by Region

APAC

N. America

Europe

No Customer Lost Since Establishment

Strong Order book Backlog $2.3B

/

Lifetime Sales Over $14.7B

27

YFAI is forecasted to keep the leading position in the Interiors Business with a growth in market share

Interior Market Share - 2016 Interior Market Share - 2021

YFAI 11.4%YFAI 13.8%

Others

48.8%

Others

47.3%

28

Recognized by Customers as the Leading Interiors Supplier

Volvo Quality Excellence Award

Ford and FCA Best product

SAIC-GM Special Contribution Supplier Award

Annual Best Supplier 2015

SAIC PV Excellent Supplier

SAIC-GM Special Contribution

Supplier Award

GM Excellent Quality Supplier

Award

Volvo Quality Excellence Award

Ford and FCA Best product

SAIC PV Excellent Supplier

DPCA Excellent Supplier

JAC Excellent Supplier Award

Selected Customer Awards

Industry leading Product & Process InnovationsXiM17 launched in Detroit 1/2017– Demonstrates our vision and innovation – Over 25 innovations – most ‘ready-to-sell’ some

‘exploratory’Patents from Day 1 – 51 Patents Granted– 125 Patent Applications

ProductOur APDS drives YFAI product & process innovation & strategic customer collaboration

AW

ARD

18–24 months SO

P

EO

P

18–24 months 5–6 years

ProductionLaunchDevelopmentRFQQuotePro


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Interior Product Offering

Door Panels

Instrument Panels

Consoles

Decorative Trim

YFAI provides the Full Range at Best Cost:

From best-in-class-components to fully integrated and tested modules to total Interiors

YFAI leads in Adaptive Interiors:

Flexible car Interiors that adapt to end-user needs through Smart Surface Functions, Kinematics, Ergonomics, Storage and Ambiance supporting health and wellness and our vision of “Better Life on Board”

YFAI leads in Sustainable Lightweight:

Structures, Materials, designs and manufacturing processes; plastics and natural fibers

YFAI leads in Functional Interiors Surfaces:

Look, feel AND function: superior craftsmanship AND seamless function integration: HMI (display and controls) and other mechatronics functionssuch as lighting and heating

31

Manufacturing Excellence

To become the most operationally capable GLOBAL INTERIORS company in the world

� YFIMSWith 8 Principles for Global execution

� New BBPCI-Trac Strong CI focus

Global Best Practices are being shared in all regions

New BBP standards

� Industry 4.0Establish Smart Factory

Industry 4.0BBP

YFIMS

Cus

tom

ers

and

Stak

ehol

ders


Innovation and Product

Realization

Strategy and Management

BOS Policy

Cus

tom

ers

and

Stak

ehol

ders

Resource ManagementHR Finance

Procurement

RM

IPR MX

SM

IT

Mission, Vision and Values

People Driven by Process and Passion for Execution

People


33

Business Operating System (BOS)

Registration

Practice Survey

Validation

Audit

CertificationC

usto

mer

s an

d St

akeh

olde

rs


Innovation and Product

Realization

Strategy and Management

BOS Policy

Cus

tom

ers

and

Stak

ehol

ders

Resource ManagementHR Finance

Procurement

RM

IPR MX

SM

IT

Mission, Vision and Values

Leading through Vision and Value

Establishing Strategic Direction

Advancing Customer Orientation

Diversity Optimization

Exploring Global

Raising Organizational Talent

Seeking for Empowerment

High Impact Influence

Identifying and Leading Change

Passion for Results

YFAI BOS� Compliant with industry and customer standards;

� Reflects best practices;

� One global common language;

� One global standard to enable execution;

� Process discipline of bottom-up engagement;

YFAI is transforming the

InteriorIndustry

Technology and Innovation Driven

Customer, Product, Process and People oriented :YFAI Culture - Execution Excellence

Leading and Focused Automotive Interiors Supplier

Shaping the Interiors for the FutureExperience in Motion: LOOK FEEL FUNCTION

5

3

2

1

4

Truly a Global player

Source: Company Information.

35

YFAI Global IG Rating assigned by Moody’s and S&P

• Key considerations for YFAI‘s Investment Grade rating:• Strong balance sheet with a good liquidity position & low

financial leverage

• Prudent financial policies and an Experienced Management Team

• Excellent relationships with Suppliers and Customers

• Strong Shareholder Support

• Strong Market Position

• Global Footprint in Major Markets and Solid Market Position as an Industry Leader

Yanfeng Global Automotive Interior systems Co. Ltd. (YFAI) has obtained investment grade (IG) ratings from both S&P (BBB-) and Moody‘s (Baa3)

with a Stable Outlook


Advanced Product Development & Sales

David Muyres– Executive Director, Product Innovation

TRANSFORMATIONT h r o u g h

I N N O VAT I O N

D a v i d M u y r e s

E x e c u t i v e D i r e c t o rA d v . P r o d u c t D e v e l o p m e n t

M a r c h 9 , 2 0 1 7

W e j u s t e n t e r e d a d e c a d e o f

t r a n s f o r m a t i o n …

O u r Y F A I V I S I O N p r o v i d e s d i r e c t i o n

a n d i n s p i r a t i o n

C h a n g e d r i v e s n e w e x p e c t a t i o n s

N e w e x p e c t a t i o n s ,

d r i v e n e w e x p e r i e n c e s

N e w e x p e r i e n c e s d r i v e O E M ’ s t o c h a n g e t h e i r

i n t e r i o r s

Y F A I G l o b a l V i s i o n+

N e w O E M I n t e r i o r E x p e c t a t i o n s

+N e w C o n s u m e r

E x p e r i e n c e s5

• Smart Inter ior Surfaces

• Adapt ive Inter iors

• Susta inable l ightweight

• Component – System –Total Inter ior with partners

• Manufactur ing Exce l lence & Industry 4 .0

XiM17

W h a t d o e s c h a n g e l o o k l i k e ?

b e t t e r l i f e o n b o a r d ,n e w u s e r e x p e r i e n c e s &

f i v e t e c h n o l o g y p l a t f o r m sXiM17

TASKING

RELAXING

TASKING

RELAXINGL o u n g e m o d e

M e e t i n g m o d e

D r i v i n g m o d e

F a m i l y m o d e

Consumers are expecting new

experiences

XiM17 VIDEO

thank you

thank you

IV19 ?

Supplier Expectations for 2017

Differentiate to Win


Wayne Witter – Procurement Senior Commodity Manager

54

What can Suppliers expect in 2017 and beyond

2017 Supplier Performance Expectations

• Increasing global demands for improvement, change, and speed of change

• A need for knowledge growth to support needs and requirements of an evolving global customer base

• New commodities to support changing interiors – Autonomous vehicles

• Increased Expectations for Launch Performance

• Continued partnering with the right suppliers in MBBP and emphasis on Continuous Improvement

55

Recent YFAI footprint expansion


• YFAI is adjusting our footprint to better serve our customers

• Supplier footprint alignment – any planned footprint expansions should consider YFAI‘s changing footprint. We need the right suppliers in the right locations

• Expanding business with Tesla, BMW, and VW, drives different needs than in the past

Belvidere, Illinois (FCA)

Freemont,CA (Tesla)

Chattanooga,TN (VW)

Spartanburg, SC (BMW)

56

Growing as a Strategic Partner with YFAI


• Fundamental Ongoing Expectations:• Embrace YFAI’s Code of Conduct for Integrity and Compliance

• Agreement to YFAI’s Terms & Conditions

• Compliance to YFAI’s Global Supplier Standards Manual

• Risk Management’s Financial Assessment (KPMG’s 3PI system)

• Positive Site Assessment Surveys (SAS). Executing to development plans

• Exceptional Quality – 0 PPM, 0 Incidents, 0 PPSCs, 0 Management Quality Reviews (MQRs)

• Exceptional Delivery - 100% on time, every time (materials, paperwork, & EDI ASNs)

• No customer disruptions. Develop and publish escalation process and contacts if there are issues to insure the customer is protected

• Flawless Launch Execution• EDI systems set up early, Timely and Accurate PPAP, PSO and Run at Rate - preparation

and execution

57



• Fundamental Ongoing Expectations:• Efficient and Effective quoting

• 100% on time Quote responsiveness to the due date for all quoting activity (Business pursuit, Business award, Engineering changes, cost save initiatives, etc)

• 100% on time SSOW responsiveness to the due date

• Accurate, Detailed, and Competitive quotes from the beginning

• Quote to the SSOW, specs. Offer alternatives as a 2nd quote

• Cost reduction compliance

• Ownership of your scorecard results

• Full support of regular business reviews

• Meet IATF16949 standards

Are you doing the basics to be considered for a Strategic Partner?

58



• How to Differentiate your company:• Fully understand YFAI’s evolving needs and Demonstrate a Strategic Advantage

to YFAI

• Develop strong relationship with YFAI plants through ongoing support and visits

• Full MBBP engagement

• Active participation and transparency in CI activities

• Aggressive Cost competitiveness

• Early engagement in product development

• Collaboration of Supplier and YFAI Innovation Teams

Ask EVERY day “How can I help my Customer Win?”

59

IT Landscape changes

• Introduction of a new QAD ERP Sytem for the areas of Production, Finance and Procurement

• NA Pilot Plants 2017• Production Plants: Southview and Grand Rapids

• Suppliers will be affected by new Supplier numbers, PO & SA numbers

• EDI connections will need to be updated

60

IT Landscape changes

• YFAI will introduce SupplyOn as Sourcing Collaboration Platform globally

• About SupplyOn• Leading Supplier Collaboration Platform that is connecting buyers and suppliers on

one platform

• Focused on Automotive, Aerospace and Rail

• 40 Buy side Customers including Airbus, Bosch, Continental, Siemens, ZF

• 40,000 suppliers connected

• What is expected from YFAI Suppliers? • Register on SupplyOn – connect “Sourcing Manager” with YFAI

• Appoint company administrator and users

• Receive eRFQ´s and submit quotes to YFAI via SupplyOn Sourcing Manager

• YFAI will start using SupplyOn to source Direct Material and select Indirect Materials with Pilot Projects as of July 2017.

• SupplyOn will support YFAI and strategic suppliers with onboarding & training

Indirect Purchasing, including Capital Equipment and Tooling

2017 Supplier Expectations

March 9, 2017

Todd Harig– Director, Tooling & Capex Procurement , NA Region

62

Welcome Everyone

Footer - Use 'Insert >Header & Footer' to modify this text and ‘Apply to all’

• Todd Harig, Director of Procurement for Capital Equipment and Tooling, EU and NA

• I’ll be presenting “Supplier Expectations” for Capital Equipment and Tooling, as well as the Indirect Procurement commodities which are lead by Jessica Klooster

• In attendance today are numerous “World Class” Builders of Capital Equipment and Tooling for the automotive industry

• Congratulations! This is the first year that these suppliers are eligible for supplier awards, and two of the suppliers in the audience will be presented awards at the banquet tonight

• Speaking of “World class builders” …….

63

Who do we think Mother Natures most accomplished builder is?

Worlds largest beaver dam is very impressive• Alberta Canada

• 850 meters long - Twice the length of the Hoover dam• Can be seen from space

The Beaver

64

But……just like our awesome equipment and tool builders in the audience today


• When we don’t follow procedures

• When we don’t apply lessons learned

• When we don’t work together as a team

Bad things happen!!!!

65

....and the results can be catastrophic!


66



67



Ok, have you seen enough???

No? OK, one more

68 Footer - Use 'Insert >Header & Footer' to modify this text and ‘Apply to all’

Ouch!

69

What are the keys to not getting crushed in this business?


• Understand the Technical Specifications, make sure your quotes match the specs, and are in the correct format.

• Manage your capacity, don’t take on work you can’t handle.

• ‘Best Cost’ up front, let’s stop wasting precious time negotiating back and forth!

• Provide detailed timelines early in the program, manage to these timelines, and provide “real time communication” of potential delays.

• Be vigilant in product design feasibility, escalate and document concerns if they are not being addressed.

• Be clear on what you need from us to be successful, speak up if your not getting it.

• Strong technical support at machine commissioning in the plant, and be there on schedule!

• Excellent / local technical service support

70

And just so it‘s not one sided, here is what YFAI is doing to help you succeed


• AME and COC (Center of Competence) have aligned under one leader, Oliver Becker, and are working hard to improve consistency of our specification packages and equipment and tooling standards regionally and globally.

• We are also enhancing our product design guidelines for our Product Engineering team to reduce product feasibility concerns and delays.

• Our procurement organization has realigned to provide improved commodity focus and expertise.

• We’ve made enhancements to our Business Operating Systems to improve efficiencies and eliminate waste.

71

Indirect Procurement Highlights400M spend 2300 suppliers 100 commodities 10 buyers

• Indirect Products & Services• Building Strategic partnerships to support the broad scope of commodities

• Growing our Operations relationships to engage earlier in projects and impact YFAI bottom line

• Developing key commodity strategies

• Corporate Services Procurement• After the successful launch of the YFAI travel tool in 2016, were moving on to

implementation of a new expense tool

• Bringing Energy Management and Utilization in-house for better cost control and visibility

• Launch Support• Setting up new MRO and services for new Belvidere IL, plant

• Supporting multiple ERP systems as we move off from legacy systems onto a single system

72

Indirect Supplier Expectations

What do we need from YOU, the supply base, to execute in 2017?

• Engaged: are you staying connected for alignment & success?• X-Factor: what sets your product or service apart from the market?• Established: are you structured & able to meet YFAI expectations? • Customer Service: is YFAI your priority for the best support?• Utilize: are you supporting YFAIs effective use of your product?• Trust: are we working together with mutual trust and integrity?• Excellence: are you bringing your very best to YFAI?

73

That’s AllThanks for listening

2016 YFAI Compliance - Supplier Conference

FLAWLESS EXECUTIONSupplier Development / Supplier Quality

2017 YFAI Supplier Expectations Day NA Region – March 9th, 2017

Matthew MacekSupplier Development Director

75

What is the first thing you think of when you see that the next presentation is on Quality?

FY17 Supplier Expectations Day SD Communication

76

QUALITY PRESENTATION HAPPINESS GRAPH


Start EndMiddleGetting there

Almost done

77

AGENDAMarch 9, 2017

2016 Points of Interest

YFAI Global Supplier Standards Manual

Flawless Execution Key Points

2017 Expectations


78

2016 POINTS OF INTEREST

How did we do?

• 15 PPM Overall (solid performance but still underreported)

• 2281 Quality Incidents (similar to FY15, minimal improvement)

• 11 MQR1/2/3’s (too many)

• Supplier Development performed 100 onsite audits across the network

• 7 Rating Improvements (R>Y>G) of SAS audits with the focus on strategic suppliers


79

2016 POINTS OF INTEREST

What did we observe?• Remnants of “This is not how we have

done it in the past” attitude.

• First time throughput on PPAP submissions is poor, too many basic issues. Lack of disciplined run at rates.

• Continue to see high turnover of resources, lack of YFAI notification

• Proactive approach getting better, onsite support is still lacking

• Better problem solving in some areas and worse in others(poor disciplined approach, lack of data)

• Better adherence to notification process for changes but still too many surprises.


80

NEW Global Supplier Standards Manual released January 3, 2017

GLOBAL SUPPLIER STANDARDS MANUAL


81

Highlights• One manual one file. Prior version was

broken in 4 different files.• Expanded APQP section which provides clear

expectations that ensures flawless execution and proper PPAP’s.

• Expanded expectations of sub-supplier management.

• Comprehensive expectations for managing day to day quality and interactions with YFAI plants.

• New YFAI supplier award types and criteria outlined.

• Valid for all regions



82

Where can I find it?• Announcement and file are posted to

www.yfai.com in the Suppliers section.

• All new website coming in 2nd Quarter



http://www.yfai.com/

83

FLAWLESS EXECUTION KEY POINTS

What can be done better to ensure flawless execution?• Feasibility form added to SSOW, be vocal!• Understand the customer requirements• Participate early with SDT and be onsite for slow builds• MANDATORY Launch Containment plans, and successful

Run@Rates; protect us!• We expect PPAP perfection (timing and content); Has your

team ever been trained in AIAG?VDA/Formel Q?• Manage your sub-suppliers; incoming inspection, audits,

continuous improvement.• Service your plant customers; provide the plants a contact

information/escalation matrix, go and see!


84

EXPECTATIONS FOR 2017

What We Need from You in FY17• Drive towards 0 PPM. • No Management Quality Reviews (MQR)• 100% on-time deliveries• Helps our plants succeed!

o Onsite support to see the issue first hand and ensure you understand critical needs

o Keep contact/escalation matrix up to date• Real root cause or fake news? Show me the data!• Supplier Change Request Process: FORM, TIME,

QUALITY MANAGER• Proactive APQP to achieve PPAP perfection;

containment/boundaries/appearance parts• Get trained in VDA 6.3 (if you have or plan any business

with German OEM’s)• Drive alignment with IATF 16949


85 FY17 Supplier Expectations Day SD Communication

You made it, we are done!


Supplier Risk Management

Scott Postma – Procurement Director

87

Global Market – December 2016

88

NA Automotive Market Conditions

15.1

12.6

8.6

11.913.1

15.416.2

17 17.5 17.8

-2

2

6

10

14

18

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US Light Vehicle Production

(Mill

ions

)

Key Market Factors� Strong December fueled by record incentives, low gas prices, stock market� Segment Shifts 2013: 50% Truck/SUV 2016: 63% Truck/SUV� Leasing 32% of sales. Declining residual values� Political uncertainties could impact consumer confidence� Expect slight volume decrease for 2017

89

Risk Management Scope

Preventive Intensive Care Special Projects

Watch List Work-Out List Projects

Financial Ratings Strategy Targeted Initiatives

Commodity Strategy Project Management

90

Risk Management Team Structure

Global/NA Director

Scott PostmaHolland, MI

EU Risk Manager Verena WeigandMunich, Germany

Sr. Risk Analyst

Sona BojnanskaBratislava, Slovakia

Risk Analyst

Lenka BuriankovaBratislava, Slovakia

AP Risk Manager Pan YuruShanghai, China

91

Interiors Historical Insolvent Supplier Costs

� Decreasing trend of supplier financial costs since economic crisis

� Shed many distressed suppliers when YFAI was created

� Stable sourcing process being executed in past years

0

2.9

5.76.26.9

10.911.3

20162015201320112010 20142012

JCI Interiors Division NA/EU YFAI NA/EU

US$

Mill

ions

92

Rating Tool - 3PI by KPMG

17 Ratio’s clustered in 4 categories

� Profitability (Cash flow, Operating Profit)

� Efficiency (DPO, DIO, DSO, etc.)

� Liquidity (Cash-to-cash cycles, etc.)

� Leverage (Debt levels, etc.)

3PI is

� Globally standardized (web based)

� Accepted in the industry

� Transparent to both parties

� Easy, current, confidential, free

93

Regional Assessment Status – Becoming GlobalNA EU AP

Rated Spend: US$ 819M

Suppliers: 337

Green: 168

Yellow: 153

Red: 16

Critical Cases: 0

Rated Spend: US$ 617M

Suppliers: 293

Green: 131

Yellow: 195

Red: 13

Critical Cases: 0

Launching in 2017

94

Risk Assessment Process

� Current Scope: Direct Material and Tooling/Capex Suppliers to NA/EU regionsIndirect/Logistics at discretion of team

� Implementing in AP region in 2017. Focus on Direct Material suppliers.

� Evaluate each legal entity or require parental commitment

� Suppliers submit minimum 2x per year

� Confirm submitted templates with independently reviewed statements

� Condition of controlled/directed supplier sourcing

� Supplier information confidential to RM team. R/Y/G rating provided to buyers


MBBP / CIMaterials Best Business PracticeManuel Fernandez Gonzalez– Procurement Senior Manager

97

Preferred Procurement Strategy

98

Customer of Choice Partnership

MBBP

Market Growth

Joint Continuous

Improvement

Strong Supplier Partnerships

Business Simplicity

Early Engagement

Innovation

99

Chrome Plating

Die Cut

Clips – Preferred SolutionScrews – Preferred Solution

Painting

Wrapped Components

Flocking

Injection Molding

Inner Door Opener

Acoustics

100

Poured Foam

Foil/Vinyl

Stampings

Welded Assemblies

Blow Molding

Cut & Sew

Hinges

Lamination

101

MBBP Customer of Choice Partnering Cycle

Data gathering onsite to identify current performance

Co-develop confidential cost model

Plant performance analysis prepared to provide a long-term roadmap to improve operational execution

Contract includes cost improvement roadmaps and supplier development plans through Continuous Improvement (CI)

Trusted, high performing,sustainable andcompetitivegrowth partners

ASSESS

AGREE

IMPROVE

PLAN

PARTNER

102

Manufacturing Skills Gap

103

What is your hiring and people development strategy in 5 years? In

10 years?

104

Predictions and Industry Concerns

105

600,000 US manufacturing jobs go unfilled each year due to skill

shortages. The situation in Europe is similar. Chief executives of some of

Europe’s largest manufacturers predicted a possible gap of 500,000

engineers by 2025

106

China’s population over the age of 65will surge from 8% to 23% between

2010 and 2040 even as Chinese factories today struggle to fill

positions

107

73% of tool & die makers are older than 45

108

Automation Technology, Manufacturing 4.0/Smart

Factories and cloud based ERP systems will require a different skill set than the standard in

today’s operations.

109

Only 1 in 5 manufactures are looking for next generation employees who

have data analysis skills

70% of executives report a shortage of adequate technology

and computer skills

110

40% of manufactures want to hire employees with lean manufacturing

skills

111

80% of manufacturing executives said that a shortage of skilled

workers will affect their companies in the next 12 months

112

On average recruiting takes….70 days for a skilled production worker

94 days for an engineer

113

What’s the potential IMPACT?

114

McKinsey Global Institute warns that workforce availability threatens to

reduce economic growth by 40%

115

82% of executives believe the skills gap will impact their ability to meet

customer demand

116

61% of manufactures have reported increasing cycle times of 5% or

more due to skill shortages

117

70% of manufactures report an increase in overtime costs due to

skills shortages

118

Manufactures lose as much as 11% of their annual revenue due to

unfilled jobs

119

What are companies doing to prepare for this?

120

GAP Analysis

121

Job Descriptions

122

Company Driven Apprenticeships

123

Siemens in 2011 created an apprenticeship program for seniors at a local high school that combines

four years of on-the-job training with an associate degree in

mechatronics

124

John Deere – has designed a curriculum and donated farm

equipment to several universities to train technicians for it’s dealer

network.

125

Branding/Marketing/Strategy

126

GE released a commercial to help reinvent their brand focus on young software engineers and welcoming ideas in an effort to show that they are a digital company. Breaking the stereotype of an industrial company.

Manufacturing is no different

127

Companies are making training & development a competitive differentiator rather than an

expense

128

References

• http://www.connstep.org/blog/

• http://www.sbnonline.com/article/loaded-with-programs-to-address-the-skills-gap-manufacturers-first-have-to-change-peoples-perceptions/

• http://www.manufacturing.net/data-focus/2017/01/infographic-25-ways-attract-millennials-manufacturing

• http://m.industryweek.com/recruiting-retention/factory-skills-gap-could-spell-trouble-trump-s-jobs-plan

• http://cdmcmachine.com/apprenticeships-answer-manufacturing-skills-gap/

• http://www.cedefop.europa.eu/en/publications-and-resources/publications/3071

• http://m.industryweek.com/education-training/closing-manufacturing-workforce-skills-gap

• http://www.earnestassoc.com/ea-2015/wp-content/uploads/2015/08/10thingsyoushouldknowabtmfgskillsgap.pdf

• http://www.forbes.com/sites/meghanbiro/2014/06/29/talent-analytics-a-crystal-ball-for-your-workforce/#273d1f9f4b21

• http://www.forbes.com/sites/joshbersin/2013/12/19/ten-predictions-for-talent-leadership-and-hr-technology-in-2014/#560086206dba

http://www.connstep.org/blog/

http://www.sbnonline.com/article/loaded-with-programs-to-address-the-skills-gap-manufacturers-first-have-to-change-peoples-perceptions/

http://www.manufacturing.net/data-focus/2017/01/infographic-25-ways-attract-millennials-manufacturing

http://m.industryweek.com/recruiting-retention/factory-skills-gap-could-spell-trouble-trump-s-jobs-plan

http://cdmcmachine.com/apprenticeships-answer-manufacturing-skills-gap/

http://www.cedefop.europa.eu/en/publications-and-resources/publications/3071

http://m.industryweek.com/education-training/closing-manufacturing-workforce-skills-gap

http://www.earnestassoc.com/ea-2015/wp-content/uploads/2015/08/10thingsyoushouldknowabtmfgskillsgap.pdf

http://www.forbes.com/sites/meghanbiro/2014/06/29/talent-analytics-a-crystal-ball-for-your-workforce/#273d1f9f4b21

http://www.forbes.com/sites/joshbersin/2013/12/19/ten-predictions-for-talent-leadership-and-hr-technology-in-2014/#560086206dba


Industry 4.0

Dr. Michael Schachler –Executive Director Industry 4.0

130

We have passed several social, political andtechnological tipping points

2005

2013

131

„Industry 4.0 will be to the human mindwhat Industry 1.0 (Steam Engine) was to the human body“

Adapted from Ray Kurzweil

Raymond "Ray" Kurzweil is an American author, computer scientist, inventor and futurist. He has written books on health, artificial intelligence, transhumanism, the technological singularity, and futurism. Kurzweil is a public advocate for the futurist and transhumanist movements, and gives public talks to share his optimistic outlook on life extension technologies and the future of nanotechnology, robotics, and biotechnology.

132

„Industry 4.0 will be to the human mind what Industry 1.0 (Steam Engine) was to the human body“

Before the Steam Engine

� Only manual labor existed, supported by simple machines and animal power (horse, ox)

� Labor was not scalable, one could only consume what one created – manually

� Separation of labor only exited between approx. 50 crafts and professions (farmer, smiths, carpenter, priests, medical doctors, …)

After the Steam Engine

� Industrialization set in

� Industrial output was not directly related to the number of people employed anymore, so was gross domestic product

� Hundred, if not thousand of all crafts, professions, job types in existence today owe it back to the steam engine

Why talk about it now?

133

Industry 4.0 is powered by Moore’s LawProcessing power doubles every 18 months w/r to cost Smart machines will become affordable and widely applicable to industrial use.

Microelectronics

Nanoelectronics

QuantumelectronicsBiocomputing

today

134

Battery Cost began to drop, challenging Competitiveness of Internal Combustion Engine (ICE)Battery cost began to drop to end the competitiveness of the small internal combustion engine and open up many new disconnected/mobile applications in the next 3-5 years

Source: McKinsey 2011, US Department of Energy, YFAI team analysis

Battery Price USD per kWh

Fuel

Pric

e U

SD p

er G

allo

n

2013 2011

2020

135

Overview –Key trends influencing YFAI’s priorities in Industry 4.0

Education� Lack of skilled labor and

employees

Source: YFAI, future matters (Lars Thomsen), McKinsey, US Energy Department, various

Machine Learning� Pattern recognition� Deep learning� Artificial Intelligence

DemonetarizationFinancial rewards less important to Digital Natives

Multi-polar World� Brexit, TTIP cancelled, etc� Asian Development Bank vs.

IMF

Mega Trend

Battery Technology� USD/kWh 100.00 by 2022 Electric Vehicle

� Lower Barrier to Entry leading to new OEMs

� End of ICE by 2035

Autonomous Driving�More, less qualified “drivers”� Smaller transports� Interior more important

Shared MobilityUtilization per vehicle will go up, total demand down

Market RegulationProtectionism makes crossing borders with goods and services increasingly difficult(Global Trade Alert, 2016)

Industry Implication

Advanced Manufacturing� Vastly greater

manufacturing variance, smaller lot sizes

� Highest possible automation

� Local

YFAI Implication

136

YFAI views the Smart Factory as a starting point of its Industry 4.0 Transformation

“Smart Factories for Smart Interiors” with

I. Massively Improved Manual Labor (Automation)

II. Reduce Single Use Equipment (Design for Robotics)

III. Eliminate Incidents (Robustness)

IV. Reduced Waste (Design and Process Integration)

V. No more Delays (Holistic Program Management and Supply Chain Integration)

Energy Management

Mechanization

Automation

Quality

Maintenance

Visualization

MESHorizontal Integration

Vertical Integration

Governance

Compliance

137

To ensure focus and progress YFAI takes a strategic view on Smart Factory, launching an initiative

� YFAI established a Global Operations Team, including a Smart Factory Initiative

� Clear guidelines are developed to provide guidance and ensure effectiveness

� Increase automatic Datafication, Automation, Flexibility

� Allow for across plant comparison/benchmarking of station/sub-process/process

� Increase collection of knowledge and communication

“Industry 4.0 is process automation using electronics and IT to achieve the Smart Factory”

Plant 1 Plant 2 Plant 3

WIKI/Knowledge Base

Discussion Forum/Ops Community/Chat

Data Warehouse/MES Backbone/Deep Learning

138

Industry 4.0@YFAI is implemented by 8 technology driversBig Data, Analytics, Deep LearningComprehensive evaluation of available data (e.g., from ERP, SCM, MES, CRM, and machine data)• Real-time decision- making, support and

optimization

Advanced Robots• Autonomous, cooperating industrial robots• Numerous integrated sensors• Standardized interfaces• Tool-less fab

Additive Manufacturing, e.g., 3D • 3D printing particularly for

spare parts and prototypes• Decentralized 3D facilities to

reduce transport distancesand inventory

Augmented Reality• Augmenting reality for

maintenance, logistics and all kinds of SOPs

• Additional information displayed, e.g. in glasses

Cloud and Cyber-security• Manage huge data volumes in

open systems• High level of networking

between intelligent machines, products, and systems leads to particularly high security requirements

Industrial Internet• Network of machines, and

products• Multidirectional communication

between networked objects

Horizontal/Vertical Integration• Cross-company data integration

based on data transfer standards• Pre-condition for fully automated value

chains (from supplier to customer, from mgmt. to shop floor)

Simulation• Simulation and optimization of

value networks based on real-time data from intelligent systems

The eightTechnologyDrivers of

Industry 4.0

Source: The Boston Consulting Group

139

A three tiered set up will ensure rapid deployment of Industry 4.0 paradigms is achieved

� Visionary and world leading showcase to establish us firmly as leading thought partner for our customers.

� Partner with customers, suppliersand universities

Guidelines and Standards to wider organization for driving Smart Factory around the globe

Targeted pilot projects and build out of lighthouse plants in every continent

Achieve world class values in � Safety� Cost� OEE� Waste� Maintenance

„SF20“

YFI Manufacturing SystemMaturity Models

I. Improved Manual LaborII. Reduce Single Use EquipmentIII. Eliminate IncidentsIV. Reduced Scrap, no Defects V. No more Delays

140

The time is now to seed the future

Before Industry 4.0

� A manufacturing site is a mostly self contained, autonomous, independent unit

� A manufacturing site is dominated by manual labor (direct and indirect)

� Few high level skills (maintenance, planning) are retained on site

� A plant is hierarchical characterized by traditional plan, command and control structures

After Industry 4.0

¾ A manufacturing site will be tied into an “always on” global virtual production and social network constantly exchanging best practices to accelerate harvesting of competitive advantage

¾ Simple, repetitive manual tasks will be performed by machines

¾ Many new specialized high-tech jobs will emerge, e.g. process modeler, data analyst, building on existing manufacturing expertise

¾ High level, rare skills will be centralized in select lead plants and deployed globally from Centers of Excellence via virtual technologies (e.g. remote maintenance via augmented reality support)

¾ Collaboration will be less hierarchical, more advanced, collaborative joint problem solving

CONCEPTUAL

141

In Summary

Industry 4.0 is business as usual, it just means …

}every department has to evaluate the impact of disruptive technology on its

work and seriously challenge itself, as technological enablers and social

drivers will induce radical change very quickly

}a central, cross functional team needs to coordinate functions to ensure

alignment and effectiveness.

142

North American Business Strategies

Supplier Expectations Day 2017

Nathan Bowen, VP & GM - Americas

143

15.3

8.6

17.6

18.7

8

10

12

14

16

18

20

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

NA Annual Production Volume2006-2021 (M units)

NA Annual Production YoY Change2010 - 2021

North American has experienced unprecedented growth, reaching a new peak in 2016; outlook is essentially a plateau

17.6M units forecast for 2017, slightly below 2016’s record production level

39%

10%

18%

5%

5%

3%2%

-1%

2% 1% 3%

0%-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Market has essentially reached a plateau since 2015 which is forecast to continue for the foreseeable future

144

YFAI is transforming the

automotive interiors

industry by redefining the

way people live inside

their vehicle.

Brand Statement

145

North America –2016 Year in Review / 2017 Expectations2016 – Innovation & Customer Engagement• Exhibit at North American International Auto Show

• Hosted customers, suppliers & media

• Unveiled XiM17

2017 Expectations: • New plant execution

• Launch execution

• Focus on supplier quality

We’ve been well-received by customers, and have been growing. In order to continue, it depends on execution and growth.

146

Key New Business Wins

2019 Toyota Highlander Product: FCSOP – Sept 2019

2019 Ford ExplorerProduct: DPSOP – February 2019

2019 Jeep Grand WagoneerProduct: DP, IP/Cockpit & FCSOP – September 2019

2019 Jeep CherokeeProduct: DP, IP/IP Trim, Cockpit & FCSOP – May 2017

Tesla Model-3Product: FC SOP – July 2017

2018 Toyota AvalonProduct: DPSOP – March 2018

147


Americas

28 Locations12,000+ Employees

Europe & South Africa


Asia Pacific


18Countries

33,000Global employees

1Seamless global

network

Global HQ

Regional HQ

Tech Center/Innovation center

Plant/office

Business CenterUp to Dec. 2016

Footprint of the facilities highly matched with customers

148

North America: 2016 New Footprint Announcements

Lansing

WarrenHarrison Township

Northwood

Mississauga

Fountain Inn

Holland

Highland ParkBryan

Louisville

Riverside

McCallaWest Point

Cottondale

San Antonio

Ramos

Derramadero

Queretaro

Frenchtown 1&2

Grand Rapids

Romulus

Santa Maria

Chattanooga

Plymouth

Belvidere

Belvidere, IL: Interior cockpit components for Jeep® Cherokee

Fountain Inn, SC Supplies BMW with instrument panels, door panels and floor consoles

Palo Alto

149

North America – 2016 Expansions / Launches 2016 Operations Highlights:• Querétaro, Mexico expansion – Serve

Daimler, BMW and GM

• Santa Maria, Mexico expansion – cut, sew, wrap of multiple BMW programs

• Launched Chattanooga, TN plant – Supply floor console, IP and trunk trim for the new VW Atlas

150

Closing Comments – Execution is key


• Execution is critical to our relationships with our customers and suppliers

• We need you to be focused on execution• Be engaged• Be vocal and communicate your best recommendations for program and

product development

• Be responsive• Drive Continuous Improvement through the supply chain

• Partner with us on Product Innovation with a focus on Cost down, Value up

Flawless execution is what helps secure the next order and is critical to our future success. You play a key role in this.

Executing for Success!

Bryan Nyeholt

Vice President, Global Program Management

9 March 2017

152

$8.5 Billion Global Sales What does it take to keep feeding this?

58%

27%

15%

Global Sales

Asia Pacific - $4.9 Billion

North America - $2.3 Billion

Europe - $1.3 Billion

153

# of Programs per Region

350 active launches globally

60 active in North America

30 active in Europe/South Africa

260 active in Asia

154

Launch Performance Summary (Global)Off to a great start….all met 0-0-0-100-90 in January

Global = 100%

Thank you for your help in this!

155

Region OEM Program Name YFAI Plant(s) SOP Safety Quality Delivery Financial Pass / Fail

NA GM 2017 NA GM BEV2 Chevrolet Bolt Carrier Assy Lansing 31-Oct-16 PASS

NA Toyota 2017 (NA) Toyota 257B (Highlander) OHC Santa Maria 7-Nov-16 PASS

NA VW 2017 (NA) VW BSUV Garnish (trunk) Trim YF Chattanooga 12-Dec-16

NA VW 2017 (NA) VW BSUV Instrument Panel YF Chattanooga 12-Dec-16

NA VW 2017 NA VW Group VW 416 B- SUV Floor Console Chattanooga,TN 12-Dec-16

NA Honda 2017 NA Honda THRA Odyssey Overhead Console Southview 3-Apr-17

NA Toyota 2017 (NA)Toyota 44x (Highlander)Tambour Door HFO YFAI - Santa Maria 17-Apr-17

NA FCA KL (Door / FC / Cockpit) Facility move to Belvidere Belivdere 15-May-17

NA Toyota 2017 NA Toyota 010B Camry Interior Trim Louisville 2 1-Jul-17

NA Toyota 2018 NA Toyota 010B Camry Over Head Console

Santa Maria, Mexico 1-Jul-17

NA Tesla 2018, NA, Tesla, Tesla, Model 3, Floor Console Hayward, CA, USA 3-Jul-17

NA Chrysler 2018 (NA) Chrysler RU IP Trim MCA FT2/SV 24-Jul-17

NA BMW 2018 NA BMW G01 BMW X3 Door Panel

Fountian Inn, Ramos II, Santa Maria, Grand

Rapids

1-Aug-17

NA Ford 2018 (NA) Ford P558 (Buzz) Door Panel Louisville and Grand Rapids 1-Nov-17

NA Ford 2018, NA, Ford, P552 / P558, F150/ F250/ F350, Hard Trim

Romulus / Louisville 20-Nov-17

Launch Performance Forecast (NA)2 complete, 13 to go this year

2 have passed the 90 day criteria

3 that are on day 87 and will clear this month

Next 10 targeted for this year

156

Region OEM Program Name YFAI Plant(s) SOP Safety Quality Delivery Financial Pass / Fail

NA GM 2017 NA GM BEV2 Chevrolet Bolt Carrier Assy Lansing 31-Oct-16 PASS

NA Toyota 2017 (NA) Toyota 257B (Highlander) OHC Santa Maria 7-Nov-16 PASS

NA VW 2017 (NA) VW BSUV Garnish (trunk) Trim YF Chattanooga 12-Dec-16

NA VW 2017 (NA) VW BSUV Instrument Panel YF Chattanooga 12-Dec-16

NA VW 2017 NA VW Group VW 416 B- SUV Floor Console Chattanooga,TN 12-Dec-16

NA Honda 2017 NA Honda THRA Odyssey Overhead Console Southview 3-Apr-17

NA Toyota 2017 (NA)Toyota 44x (Highlander)Tambour Door HFO YFAI - Santa Maria 17-Apr-17

NA FCA KL (Door / FC / Cockpit) Facility move to Belvidere Belvidere 15-May-17

NA Toyota 2017 NA Toyota 010B Camry Interior Trim Louisville 2 1-Jul-17

NA Toyota 2018 NA Toyota 010B Camry Over Head Console

Santa Maria, Mexico 1-Jul-17

NA Tesla 2018, NA, Tesla, Tesla, Model 3, Floor Console Hayward, CA, USA 3-Jul-17

NA Chrysler 2018 (NA) Chrysler RU IP Trim MCA FT2/SV 24-Jul-17

NA BMW 2018 NA BMW G01 BMW X3 Door Panel

Fountian Inn, Ramos II, Santa Maria, Grand

Rapids

1-Aug-17

NA Ford 2018 (NA) Ford P558 (Buzz) Door Panel Louisville and Grand Rapids 1-Nov-17

NA Ford 2018, NA, Ford, P552 / P558, F150/ F250/ F350, Hard Trim

Romulus / Louisville 20-Nov-17

Launch Performance Forecast (NA)2 that we need your extra focus and help

We depend on you for success on all of these…..

But, we have one that we really need your help with……..FCA IP transfer from Northwood to Belvidere: complete plant closure and transfer to a new plant

And a second that we really, really need your help with…….Tesla Model 3 Floor console: New customer, new plant, new team, new ordering system, no freeze point,

157

Tesla Model 3 Floor ConsoleSourcing Tracking Matrix

Part Description Supplier Buyer PO Lead Time1785227 DPR.RWRD SNAP 13TOOTH G ITW Motion Herrick 550802951872585 Clip, Garnish, for Plast Termax Lally 55066809 6 weeks2193423 M4.2-1.41 Thrded PushNut ITW CIP McClafferty 550802332998251 SCREW,TAPPING FOR PLASTI TR Fasteners McClafferty 550803343180484 TAPE.S550 W/A 2 SIDED Kent Moon 55071417 4 weeks3351430 Screw for Plastic, PS 4x TR Fasteners McClafferty 550803343602590 MAGNET.M3 BENTO BOX Polymagnet (China) Riendl Pending Approval 7 weeks3602678 MAGNET.M3 FRT BIN INSERT Polymagnet (China) Riendl Pending Approval 7 weeks3620502 SWTCH.M3 FC LAMP ALPS Rodriguez NEED 14 weeks3620520 USB.M3 CHRGR DATA FRT Delphi Rodriguez NEED 18 weeks3620526 LVR.M3 FRT LID West Mich Molding Shen 55067028 4 weeks3620528 LVR.M3 RR LID West Mich Molding Shen 55067028 4 weeks3624537 GEAR.M3 FRT LID LH West Mich Molding Shen 55067028 4 weeks3662189 SCR.M4.2X19 TR Fasteners McClafferty 55080334 4 weeks3663636 WGHT.M3 RR BIN LID RH Pace McClafferty Pending Approval 15 weeks3663667 WGHT.M3RRBINLIDLH Pace McClafferty Pending Approval 15 weeks3663724 SPRNG.M3 LTCH BIN DR FRT Automatic Spring McClafferty 550803363663732 WGHT.M3 FRT BIN DR AR MG JD Norman Riendl Pending Approval 12 weeks3663738 LTCH.M3 FRT BIN DR West Mich Molding Shen 55067028 4 weeks3663756 BSHNG.M3 LG FRT BIN West Mich Molding Shen 55067028 4 weeks3663757 BUSHNG.M3 LINK AR FRT BI West Mich Molding Shen 55067028 4 weeks3663758 BSHNG.M3 MAGNET AR FRT B West Mich Molding Shen 55067028 4 weeks3663776 PRNG.M3 MAGNET AR FRT B Automatic Spring McClafferty 550803363663777 SPRNG.M3BIN DR RR Automatic Spring McClafferty 550803363663780 SPRNG.M3 GEAR DR FRT Automatic Spring McClafferty 550803363663781 LNK.M3 FRT BIN DR West Mich Molding Shen 55067028 4 weeks3692094 LGHT.M3 AMBT FRT BIN Draexelmaier Rodriguez 55080464 4 weeks3703158 TPE.THERMLAST TC6GPZ.BLK Chase Plastics Services Boeve 550802383771287 LT.M3 AMB ENGINE FR Draexelmaier Rodriguez NEED 4 weeks3771306 WASHER.M3 FORM A FLT M10 TR Fasteners Riendl Pending Approval 8 weeks

1451272-MAMMOTH CONC,2000EZ 50:1 Uniform Color Company (UCC) Boeve 550667943615134-MMOTH LID.M3 RR OUTER MLD HI American Autocoat Shen 55080428 14 weeks3663789-MMOTH CVR.M3 GAP FRT BIN American Autocoat Shen 55080428 14 weeks3664692-MMOTH BIN.M3 FRT FLOCKED HI Decatur (North Vernon, Indiana) Herrick 55080300 8 weeks

VT9858 ABS,PC Trinseo Boeve 550666303602688-MMOTH LID.M3 FRT BIN OTR HI American Autocoat Shen 55080428 14 weeks

3751999 HNG.M3 PHN DCK TR Fasteners McClafferty 55080334

Thank you

Yanfeng Automotive Interiors

YFAI Global ComplianceWill Kramer – Director, Compliance, NA & EU

March 9, 2017

160

Sustainable Growth

Sustainable growth is a key element of our company values. A keen sense of entrepreneurial responsibility that’s intensely focused on sustainability is a key pillar of our company strategy. Profitable long-term growth is our aim, and responsible value creation is paving the way for our success.

Our Code of Conduct lays the foundation in dealing with customers, suppliers, employees, competitors and the public with integrity and in an ethical and appropriate manner.

• Labor

• Health and Safety

• Environmental

• Social Responsibility

• Risk Management

• Conflict Minerals

• Ethics

161

Integrity & Compliance

Zero tolerance for non-compliant behaviorWe conduct our business responsibly in compliance with all of the laws and regulations in the countries where we do business. The company does not tolerate illegal and unethical behavior.

We have one Code of Conduct globally. We expect ALL of our employees, partners and agents to behave ethically and obey the local laws and regulations where we do business.

The Guiding Principles contained in the Code of Conduct form the basis of our relationships with our employees, business partners, customers and competitors.

162

Guiding Principals

1. We obey the laws and regulations of all countries where we conduct business and comply with our company’s policies and procedures.

2. We do not tolerate corruption in our businesses.3. We ensure our records are accurate, complete and

appropriately maintained and our internal controls sound.

4. We do not use illegal or unethical means to gain an advantage over a competitor.

5. We comply with international trade laws.6. We protect the privacy of individuals7. We act in the Company’s best interests at all times.8. We safeguard the health and safety of our employees.9. We use company assets responsibly and honorably.10. We protect the Company’s confidential information

and respect that of our customers and competitors.11. We are committed to providing safe and high-

quality products and services. 12. We value diversity and equal treatment in our

workplace.

163

Partnership

• Common Goals

• Mutual Trust

• Risk Sharing

• Long-term Cooperation

Just as YFAI may be liable formisconduct of our business partners yourcompany may be liable for themisconduct of your supply base!

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Integrity Help Line• The YFAI Integrity Help Line is an avenue for employees or

third parties to report any Code of Conduct violation or toreport any unethical behavior of a YFAI employee.

• The Helpline is available either via phone or web in all locallanguages.

• A dedicated team looks into these issues / reports anddeals with them based on the merits of the case.

• The reporter has the option to remain anonymous if he /she so chooses.

• The Helpline complies with all EU data privacy rules.

Access to the Help Line: www.yfai.ethicspoint.com

By phone:

400-820-1938

000-117Dial 855-831-3125

0066-33-830645/00531-11-0414/0034-800-600286

1-855-831-3125

1-855-831-3125

001-844-291-1779

0-800-225-5288Dial 855-831-3125

800-144-254

0-800-000-101 Dial 855-831-3125

800-787814

900-99-0011Dial 855-831-3125

0800-980-905

06800-21139

http://www.yfai.ethicspoint.com/

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ThinkRecognize the warning signs

Escalate your concerns.

Act

Ask about questionable actions

Question ActEscalate your concerns

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• 2017 supplier performance expectations can be found in the brochure

• Approved presentation material from today will be available on the YFAI website, in the Supplier Communication area.

• Special thanks to Linda Schnick for all her help with the many details that go into this event

• Award recipients please plan to arrive at the Amway Grand Plaza between 5:45 – 6:15 pm.

• Thank you for your participation

Concluding Remarks

2017 YFAI Supplier Expectations Day · however, the formal award presentations will take place...

Documents

Transcript of 2017 YFAI Supplier Expectations Day · however, the formal award presentations will take place...