A Presentation of Quality Liaison Services

Who are we?

QLS – Quality Liaison Services Ltd.

• A UK-based company operating in global regions.

• Founded in 1986, incorporated in 1997.

• Well known brand identity - QLS Automotive.

• Accredited to ISO 9001:2008.

• Average annual sales over last three years: 4.35mi €

• Providing a range of engineering services to clients.

• Clients are OEMs and their Tier 1 & Tier 2 suppliers.

Our Financial Strength

Risk Evaluation

D&B Financial Strength.....................................Based on tangible net worth £1,336,901

D&B Failure.........................................................

Days Beyond Terms..............................................

D&B Maximum Credit................................

D&B Delinquency Score....................................

Legal Events

Number of Court Judgments.............................

Value of all Court Judgments............................

No. of Mortgages & Charges.............................

Associations

Parent Company..............................................

Number of Principals...........................................

Financial Summary

Latest Accounts Date................

Tangible Net Worth..............................

1A1

93

92

£53,500

0

3

No

5

31st March 2013

£1,459,165

Identification

Main Trading 8 Roydon RoadAddress Diss

NorfolkIP22 4LNUnited Kingdom

Telephone Number 01379 650651

Fax Number 01379 651056

D-U-N-S® Number 77-482-2175

Registered Number 2970064

Web Address www.qls-automotive.com

Registered Address Abbotsgate House, HollowRoad, Bury St. Edmunds,Suffolk, IP32 7FAUnited Kingdom

Line of Business Miscellaneous Services (SIC) (7399)

D&B Risk Indicator................................................

7% of UK businesses have a lower risk of failure

8% of UK businesses have a lower risk of paying

significantly late

Maximum amount on monthly open credit terms

1Represents a minimum risk of business failure

12

0

QLS Customers

•Top Customers by sales: April 2013 to March 2014

Sales £k

Plastic Omnium 325

Dr Schneider 272

Visteon Portuguesa 209

Faurecia 162

Magna 120

Gestamp 113

Woco 100

Tupy 97

Visteon Hungary 95

TRW 78

Honeywell 72

Amtec 71

Sales £k

Kostal 69

Cummins 64

Varroc 60

Ford Otomotiv 52

Inergy 52

Cooper Standard 49

Faurecia Exteriors 48

Omron 48

Grupo Antolin 44

Honeywell UK 44

Others (350 approx) 1412

Total £3,656,000

Sales By Activity Type

Sales by Activity 04/12 to 03/13 £000's

£000's

1 Audit & Rework 3040

2 Liaison Contracts 186

3 Quality Engineering 248

4 Special Projects 40

5 Others 31

3545

1

23

4 5

Sales by Activity 04/13 - 03/14 £000's

1 2 3 4 5

Sales by Activity 04/13 to 03/14

£000's

1 Audit & Rework 3137

2 Liaison Contracts 167

3 Quality Engineering 217

4 Special Projects 57

5 Others 77

3655

Management Organigram

Organisation

Managing Director

Finance Director

IT ManagerAdministration

& Finance

Manager Europe

Operations Team - Europe

Manager UK

Operations Team - UK

Manager &

Coordinator

Turkey

Operations Team - Turkey

How are we structured in Turkey?

IAN COLEMANManaging Director

EROL BIYIK Liaison & Operations Supervisor

Bursa Area

PINAR ERDEM

Payroll Manager

SEZAI ACIKEL

Job Org. and Training Rep.

…… ………. Liaison & Operations Supervisor

Manisa Area

AYSEL KURTARANOGLU

HR&Office Manager

EMIN DIREKCI

Sales in Turkey

SONER OZBEK Liaison & Operations Supervisor

Gebze Area

BULENT ELITOKTechnical & Operations Manager

TURKEY

BURAK BASSAYEL

Liaison & Operations Supervisor

BILAL BUCGUN

Liaison & Operations Supervisor

Kocaeli Area

UMUT UNALCountry Coordinator

Global Sales & Major Projects

European Operations of TURKEY

Liaison Engineering support

Turkey Organizasyon

What can we offer?

• A One Stop Organisation, based on the skills and

local knowledge of a resident engineer offering

Liaison support:

Quality Liaison and Containment Control.

Launch Engineering and Change Management.

Technical and Material Management Liaison.

Component Inspection and Rework.

Pre-Delivery Inspection and JIT Logistics.

Rework and repair of components.

Return shipment of non-compliant material.

What is Liaison Engineering

It is the on-site representation of suppliers by

QLS and has two elements:

• Proactive Liaison and Support.

In which QLS manages suppliers’ on-site customer liaison

and support operations, takes early action in anticipation

of any concerns, and acts as the supplier’s representative

under contract at the customer’s assembly plant.

• Reactive Quality Support.

In which QLS reacts to suppliers’ one-off concerns at the

customer’s plant, and follows their instructions as to our

support activity, whilst we ensure that it also meets the

customer’s plant requirements.

Proactive Liaison & Support

QLS Quality Centre

Tier 1 Supplier (QLS Client) OEM (Client’s customer)

QLS Liaison Engineer is

point of contact between

supplier and technical &

quality functions.

Checks for any problems,

reports concerns,

presents 8D reports.

Defends supplier’s

product integrity and

maintains its image, but

ensures customer’s view

is understood by supplier.

Next 3 deliveries after concern delivered

through QLS for pre-delivery inspection.

JIT or Sequenced delivery if required.

APQP, PPAP, PSW & full Launch support

End of line CS2 inspections to ensure

delivered product integrity

Process 8D reports and ensure

resolutions to satisfy customer

Implement process improvement

Report concerns

Ensure resolutions

QLS-qualified parts for use on line

The QLS Liaison Engineer:

Performs sample audits on incoming

deliveries at customer‘s plant.

Liaison contract with typical component supplier

The QLS Liaison Engineer:

Patrols the line ensuring correct

handling & fitment of parts.

Attends meetings and liaises

with OEM on any issues raised.

Provides reports for the supplier

on a daily / weekly basis.

Defends the integrity of the supplier’s parts with the OEM.

Sets up appropriate cost-effective containment actions while

liaising between OEM‘s Quality Office, PC&L and the supplier.

Liaison contract with typical component supplier

Reactive Quality Support

OEM Tier 1 Supplier (QLS Client)

QLS SQE function to assist resolution at

source at tier 1 or at sub-supplier

QLS CS2 containment here or at sub-

supplier site ensures good stock ex-gate

Quality concern !

On-site QLS Liaison

Engineer assesses and

communicates proposed

solution to supplier-client.

QLS Level 1 Containment

team takes immediate

action at OEM plant.

QLS Quality Centre

Where impossible to contain at OEM

plant, parts moved to QLS off-site facility

for ongoing inspection and/or rework

QLS quotes price to

supplier and gets

agreement and PO.

Report concerns

Ensure resolutions

QLS-qualified parts for use on line

Reject stock

Stop

Signedauthorisation

NO

Possible updates

to documentation

SafeVINno.

Data and experiences

shared with all staff

(training updates) PRC20

Disposition

of rejects,

scrap and

waste

Process set-

up and run

Tool care &

calibration

PRC08

containment

process

Site or

supplier

requests

services

PRC01

email or

telecall

Inform Originator

Define the

action, raise

authorisation

document

PRC02

OAF Order

authority

Daily plan

- Tracker

PRC14

Invoice

PRC13 CCP

with results

Daily

results

sheet

Stats, graphs

& QOS charts

FS01

customer

survey

Process audit

and reporting

PRC06

CCP

Control Check

Plan

Risk analysis

PRC07

WES, G8D

& RISK

ANALYSIS

Method statement,

part inspection

sheet

Reject label

Hold Label

PRC09 OK

stock label

Identify

parts

PRC10 Non-

conformance

Non-conforming

materials

Where do we operate: European Operations

QLS Belgium

QLS Portugal

(Trading Partner)

QLS Spain

(Trading Partner)

QLS United Kingdom

QLS Germany

QLS Poland

(Trading partner)

QLS Holland

What is our international coverage?

QLS United

Kingdom

QLS Mexico (Trading Partner)

QLS North America (Trading Partner) QLS Europe

QLS South Africa (Trading Partner)

QLS Turkey

Quality Engineering support

Supply chain assistance

Supplier Quality Engineering Support

A One Stop Organisation, providing:

• A range of Quality Engineering services:

ISO9001, TS16949 installation and training.

Supplier Auditing and Development.

Project management – APQP, PPAP & PSW.

Value Engineering and implementation.

Customer Site Launch and Liaison Engineering.

Level 2 Engineering & Containment Actions.

For which companies?

Quality Engineering.

• The QLS Quality Engineering Team numbers

most major OEMs and their Tier One systems

suppliers amongst its clients.

Engine Maker Production Audit

• OEM engine manufacturer requested the

placement of full time production audit

(boots on the ground) to ensure supplier

met quality and production schedules.

• Daily reports made, weekly meetings

held between QLS, OEM & Supplier.

• Schedules not always held but client

was at least aware of issues and able

to flex production to fit.

• Problem was so acute QLS was requested to provide

temporary operatives for the machine centres, until a

new supplier was tooled up.

Shell bearing Quality Containment Centre

APQP, PPAP & PSW for Major Supplier

• Tier 1 supplier requested QLS to supply

one Supervisor and two Senior Quality

Engineers for an OEM seat program.

• It required the project management ofthirty Tier 2 suppliers in six countries.

• QLS started by reviewing APQP with the

suppliers, agreeing timing windows

and tooling schedules.

• Then PPAP & PSW were

monitored & controlled as our

engineers constantly visited all

suppliers and brought home a

fully on-time launch.

QLS Launch Engineering

QLS Launch Engineering services are:

Supporting FSS suppliers who cannot justify the

presence of their own engineer.

Sometimes our engineer can work for several

suppliers, although companies with big programs

receive 100% dedicated support.

He interfaces between customer and supplier,

making system entries, providing change samples

and updating information at Daily Meetings.

He is a normal Launch Team Member, working

out of the plant Launch Office.

Setting up sample checks

Special Projects

OEM Support Operations

Special Projects

• We have been involved in a number of major

retrofit operations supporting a number of OEM’s.

• These normally take the form of a single point issue

which can range from a badge being dislodged

to a major body fault repair.

• These are nearly always in multiple international

locations up to twenty and have to be

completed in close unison with each other.

• QLS have developed systems to cope with these

operations and have carried out 5 major

programmes this year.

•

OEM Support Operations

Vehicle rectification

REWORK VEHICLE CHASSIS FRAMES

QUESTIONS