Case StudyCase Study

Large Automotive OEM – FMEA Managed Service

Failure Mode & Effects Methodology

© 2010 Omnex Inc 2

Block Diagram

Block Diagram

Customer Requirements

Customer Requirements

SystemFMEA

Design InputsDesign Inputs

Process FlowProcess Flow

ProcessFMEA

ProcessFMEA

Control PlansControl Plans

Shop Floor Checklists

Review, Investigate, Evaluate

48%

Monitor2%

Supplier6%

Design Change7%

Analytical9%

Physical Test10%

Process Issue13%

Other5%

Benchmark20%

Design Improvements

40%Escalation

1%

Process Review

3%

SSR11%

Verification / Testing

13%

Analytical / Math12%

Before AQP After AQP

Design Failure Mode and Effects Analysis-- Distribution of Recommended Actions

Automotive OEM – FMEA Managed Service

© 2010 Omnex Inc 3

Initial Quality of U.S. and Import Brands 1999-2010

Note: Import Brands Include Europe and Asia

Case StudyCase Study

Large Aerospace Engine Manufacturer

New Product Introduction & PPV

6

CAB Activity

Planning

Program Start

Experimental Production

Product Design and Dev.

Process Design and Development

Product and Process Validation

Production

Corrective Action Board activity

Plan & Define

Program

Product Design &

Development Verification

Process Design &

Development Verification

Product & Process

Validation

Ongoing Part & Process Control

Product & Process Planning

PPV Activities Consolidation

Industrialization

© 2010 Omnex Inc

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 StudyCase Study

Truck – System Supplier

Purchasing

FUNCTIONALEXCELLENCE

FOUNDATIONALEXCELLENCE

QOSQOS TS16949/APQP/PPAPTS16949/APQP/PPAP

Team SkillsTeam Skills Global 8DGlobal 8D

6S/VISUAL WORKPLACE6S/VISUAL WORKPLACE

Quality

Materials

MANUFACTURING

Operations Excellence

© 2010 Omnex Inc 9

Truck Industry Large Sub System Provider

Improvement Before After Comments

Quality Rejects measured in percentages

3 Years – 187 PPM Implementation of APQP and PPAP internally and with Supply Base

187 DPM

Semiconductor Semiconductor Industry TransitionIndustry Transition

Semiconductor Assembly Council – Representing 95% of Chip Industry

Outside Japan

Semiconductor Industry Methodology

© 2010 Omnex Inc 12

8-D 8-D

MSA, SPC, and Process Control

ISO TS 16949 plus APQP and PPAPISO TS 16949 plus APQP and PPAP

Customer Involvement Similar

to Aerospace Industry

Customer Involvement Similar

to Aerospace Industry

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