PRESENTED BY:

Alex Thomas, SA Group Mgr. Johnny Smith, SA Engr.

May 29, 2012

GQTS Training for Suppliers

CONFIDENTIAL 1

ONE FACE ONE TEAM

Introductions

Alex Thomas – North America Supplier Advancement Manager, Morristown, Tenn

Johnny Smith – SA – GRE

Harold Booker – SA – Vonore, Tenn Gary Liu – SA – Plymouth, Mi

Jimmie Love – SA – Morristown, TN Todd Morgan – SA – GRE

Larina Robbins – SA – Plymouth , Mi Karen Stapleton – SA – Morristown, Tn Mark Underwood – SA – Morristown, Tn

-

CONFIDENTIAL 2

SQAM

New SQAM on line NOW

Supplier Quality Assurance Manual

https://portal.koyobearings.com/PORTAL

CONFIDENTIAL 3

General Information

Taken from Page 18 from Koyo Jtekt SQAM Discrepant Material Report (DMR) is used to notify the supplier of non-conformances, discrepancies and/or rejections. The

DMR is sent via e-mail directly to the Supplier contact using JTEKT Global Quality Tracking System (GQTS) and can be

initiated from any JTEKT facility receiving Type I or Direct material. A DMR may be initiated upon detection of non-

conforming product. Requests for corrective action may be required from the supplier.

The supplier must respond directly to the DMR issuer within the requested timeframe.

Supplier Responsiveness – JTEKT will monitor speed, timeliness and effectiveness of corrective or

preventive actions using the GQTS, and may use it as input for awarding future business and monitoring

performance.

Specific timing requirements will be stated on the DMR, if required. The general or default requirements

are: • A first response (team/person assigned, problem description, containment action) for a DMR shall be supplied to JTEKT within 24

hours.

• If JTEKT requires an 8D process, the first 8D report shall be submitted within 5 calendar days.

• A complete 8D and 5-Why report must be submitted to JTEKT within 14 calendar days.

If a supplier’s product is determined to be defective in material and/or workmanship, as defined by the

design requirements, product(s) will be immediately contained.

JTEKT and the supplier shall determine if the product can be inspected to remove defects from the “lot”

that has been contained.

If time does not allow the supplier’s personnel to arrive, the supplier shall provide detailed inspection

instructions to JTEKT.

CONFIDENTIAL 4

General Information

EXTERNAL DMR

GQTS - GLOBAL QUALITY TRACKING SYSTEM

- KOYO/JTEKT Users activities

- Supplier Users activities

CONFIDENTIAL 5

General Information

WHEN THE AUTHOR (person at the Koyo/JTEKT Plant ) LOGS AN EXTERNAL DMR IN GQTS the AUTHOR GETS EVIDENCE FROM THE WEB THAT QI (QUALITY INCIDENT) WAS LOGGED SUCCESSFULLY

Note: Status of event is now (EMAIL sent to SUPPLIER)

Note: Serialized Sequential Number

CONFIDENTIAL 6

JTEKT Activity

IN ADDITION TO THE WEB INFORMATION THE AUTHOR RECEIVES A CONFIRMATION BY E-MAIL

CONFIDENTIAL 7

JTEKT Information

Supplier also receives an email regarding THE DMR NOTICE (goes to the Primary Quality Contact listed in GASL for each supplier)

CONFIDENTIAL 8

Supplier Information

SUPPLIER MUST NOW SAVE INFORMATION IN THE D1 – D6 SECTIONS OF THE DMR PROCESS. Two Options:

1)SAVE - as many times as you like –

please preference with date (note limited characters)

2) SUBMIT- If supplier hits this button, the response goes back to AUTHOR for review (note : must complete D1-D6 (LOOP) before SUBMIT)

CONFIDENTIAL 9

Supplier Activity

WHEN THE SUPPLIER USES THE « SAVE » BUTTON, THE WEBMASTER WILL NOTIFY THE AUTHOR BY E-MAIL (for every SAVE)

CONFIDENTIAL 10

JTEKT Information

For each SAVE, THE AUTHOR CAN VIEW THE SUPPLIER RESPONSE (as soon as the supplier hits the SAVE button)

CONFIDENTIAL 11

JTEKT Information

THE AUTHOR CAN ALSO SEE AT ANY TIME THE SEQUENCE OF EVENTS OF THE DMR (Transaction Log )

CONFIDENTIAL 12

JTEKT Information

Summary: Save functionality D1 TO D6

The save functionality allows suppliers to provide input to Koyo/JTEKT; such as progress updates on the Containment, investigations into root cause, etc

Since sorting for material can take more than one day, suppliers can provide details during the containment timeframe by using the save function.

CONFIDENTIAL 13

Supplier Information

AT THIS STAGE THE AUTHOR is the only one who CAN APPROVE OR DISAPPROVE THE 3D SUBMITTED BY THE SUPPLIER (suppliers must work directly to assure the author is satisfied )

CONFIDENTIAL 14

JTEKT Information

Summary: Submit functionality D1 TO D6

If the author DISAPPROVES the DMR, it comes back to the supplier for more information in D1-D6 with a note of explanation

If the Author APPROVES the DMR response, the DMR now returns back to Supplier for response to D7-D8 (loop)

CONFIDENTIAL 15

Supplier Information

WHEN SUPPLIER HAS COMPLETED ALL ACTIONS D1 TO D6 AND IS READY TO SUBMIT, HE WILL THEN PUSH THE « SUBMIT » BUTTON

CONFIDENTIAL 16

Supplier Activity

WHEN THE SUPPLIER USES THE « SUBMIT » BUTTON WEBMASTER WILL NOTIFY THE AUTHOR BY E-MAIL

CONFIDENTIAL 17

JTEKT Information

OPENING THE E-MAIL THE AUTHOR CAN SEE THE SUPPLIER RESPONSES D1 TO D6

CONFIDENTIAL 18

JTEKT Information

AT THIS STAGE THE AUTHOR CAN VIEW THE D1 thru D6 RESPONSES AND APPROVE OR DISAPPROVE THE RESPONSE for D1-D6 SUBMITTED BY THE SUPPLIER

CONFIDENTIAL 19

JTEKT Information

WHEN A SUPPLIER RESPONSE TO THE 6D HAS BEEN APPROVED BY THE AUTHOR, the Supplier

GETS EVIDENCE FROM THE WEB THAT QI WAS

APPROVED SUCCESSFULLY

CONFIDENTIAL 20

JTEKT Information

IN ADDITION TO THE WEB INFORMATION, THE AUTHOR RECEIVES A CONFIRMATION BY E-MAIL

(Note: DMR not closed quiet YET)

CONFIDENTIAL 21

JTEKT Information

THE SUPPLIER CAN NOW COMPLETE D7 AND D8 HE CAN SAVE OR SUBMIT (supplier : remember to make sure PFMEA, Flow diagram, Control plan, and possible updates to PPAP have been completed at this step)

CONFIDENTIAL 22

Supplier Activity

THE AUTHOR RECEIVES A CONFIRMATION BY E-MAIL THAT SUPPLIER VERIFICATION (step D7 thru D8) HAS BEEN SUBMITTED

CONFIDENTIAL 23

JTEKT Information

AT THIS STAGE THE AUTHOR CAN VIEW THE ENTIRE 8D RESPONSE (D1 thru D8) and APPROVE OR DISAPPROVE THE RESPONSE SUBMITTED BY THE SUPPLIER

CONFIDENTIAL 24

JTEKT Information

AT THIS STAGE THE AUTHOR CAN VIEW THE FULL 8D RESPONSE. THE AUTHOR CAN APPROVE OR DISAPPROVE THE VERIFICATION SUBMITTED BY THE SUPPLIER.

CONFIDENTIAL 25

JTEKT Information

WHEN THE VERIFICATION IS APPROVED BY THE AUTHOR, THE DMR IS CLOSED (Yeah, Applaud, Way to GO) AND THE AUTHOR RECEIVES CONFIRMATION BY E-MAIL

CONFIDENTIAL 26

JTEKT Information

WHEN THE VERIFICATION IS APPROVED BY THE AUTHOR, THE DMR PROCESS IS FINISHED AND THE DMR IS MOVED TO STATUS 15, WHICH MEANS CLOSED.

CONFIDENTIAL 27

JTEKT Information

THE TRANSACTION LOG IS RECORDING ALL EVENTS DURING EACH STAGE OR « LIFE » OF THE DMR AS A STORY BOARD

CONFIDENTIAL 28

JTEKT Information

At any time , the supplier can view the status of all DMRS (closed or not) in our system

Screen shot of ones for supplier that need responses

CONFIDENTIAL 29

Screen shot of ones for supplier that need

responses

Screen shot of all dmrs that are

closed, open, etc

Supplier Information

IMPORTANT Steps for Supplier ARE: THE SUPPLIER CAN SAVE WORK AT ANY TIME WHEN HE IS COMPLETING A

CONCERN (3D) OR COMPLAINT (8D). Please use this function as much as you like.

THE SUPPLIER CAN WORK ON THE DMR USING THE SAVE BUTTON THROUGHOUT EACH PHASE OF THE DMR. WORK WILL BE SAVED UNTIL IT IS READY TO SUBMIT

EACH TIME A SUPPLIER USES THE « SAVE » BUTTON THE AUTHOR AND

SUPPLIER ARE AUTOMATICALLY NOTIFIED BY E-MAIL AND CAN CHECK THE PROGRESS OF DMR COMPLETION AND A TRANSACTION LOG IS KEPT.

IT IS THE SUPPLIER’S RESPONSIBILITY TO WORK WITH THE PLANT

SUPPLIER REP (AUTHOR) UNTIL THE DMR IS CLOSED. OFFICIALLY: NO DMR IS CONSIDERED CLOSED OUT UNTIL THE CLOSED STATUS CAN BE NOTED ON THE DMR IN GQTS

CONFIDENTIAL 30

Supplier Information

Frequently ASKED QUESTIONS (FAQ) are:

The Koyo/JTEKT Jtekt SQAM requires 24 hour response. What if I am primary quality contact at supplier and I go on vacation for a week or 2? Answer: The supplier primary quality contact is responsible to assure a backup

person . The supplier will review the Koyo/JTEKT Portal daily. The 24 hour response cannot be increased.

Is there a time limit to be on line with the GQTS system?

Answer : Yes, once you log in to the GQTS event, you must enter the information within a 15 minutes window , otherwise your connection will be terminated automatically and you will loose any item if it was not saved.

I have been in your GQTS system and have noticed that sometimes I cannot

see DMRs that I have responded to. Is this normal? Will I be allowed as a supplier to see my final responses for corrective actions so that I can prove to my internal or external auditor my corrective action record?

Answer : Yes, only the DMRs that are waiting for the supplier response are seen

on the first screen shot. YES, You can view all DMRS and status if you click on « CLICK TO VIEW ALL DMRS » on the supplier portal. From that screen, you can view , print, etc

CONFIDENTIAL 31

Supplier Information

Presentation End Thank You

CONFIDENTIAL 32