Company OverviewCompany Overview

Tier 1 Automotive BodyTier 1 Automotive Body--InIn--White SupplierWhite Supplier

Corporate OverviewCorporate Overview

9 Plants

Corporation

� H-One� Yachiyo

� Honda UK

Profile

� Employees = 10,000� Plants = 32

� Group companies established from 1939

Business capability

� Body-in-White

� Fuel Tanks

� Car Assembly

� Tool making 13 Plants

5 Plants

3 Plants

1 Plant

1 Plant

Location & Key CustomersLocation & Key Customers

UYT

Location

� Situated in the Midlands -well placed to serve UKcustomer base

£0 £0 £5,0

21,0

00

£14,

486,

000

£6,4

00,0

00

£35,

900,

000

£61,

300,

000

£62,

400,

000

£66,

200,

000

£63,

000,

000

£52,

000,

000

£67,

200,

000

£69,

960,

000

£32,

227,

000

£41,

050,

000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

�Unipart Yachiyo Technology established

�Factory officially opened

�H-One replaced Unipart as shareholder

�Welding plant extension

Start of Production

�HUM - Civic 3D / CR-V

�Aisin -Corolla / Avensis

Start of Production

�HUM - Civic Aerodeck / Accord 4D

Start of Production

�Aisin -Corolla Verso

Start of Production

�HUM - 06 Civic

Start of Production

�HUM - 07 CR-V

�£8 million capital investment

(Tandem, & Blanking line)

1996

1997

2005

2006

1998

2000

2001

2004

2007

�2100 sq metre plant extension

Corporate History & TurnoverCorporate History & Turnover

BIW CapabilityBIW Capability

Engine bay

� Front Bulkhead� Front Side Frame� Front Damper Housing� Dashboard

Mid structure

� Roof Rail Assembly Front / Rear� Panoramic Roof� Front / Centre / Rear Pillars

Rear structure

� Wheel House� Rear Side Frame� Gutter upper/ lower� Tank Band

Core capability – safety critical, structural under body components

Press

Assembly

FacilityFacility

WELDWELD

A Line(CIVIC)

B Line(CR-V)

C Line(CIVIC)

D Line(CR-V)

PRESSPRESS 200PRG200PRG 600PRG600PRG 1800TRF1800TRF 600TDM600TDM

600BLK600BLK

Customer

Stock

1800

TDM

PRG

PRG

Supplier Post paint assemblyPickingPacking

Productive ProcessProductive Process

Converters

BLANK PRESS

WELD

SUB MAIN DESPATCH

148 partnumbers

Supply Chain CapabilitiesSupply Chain Capabilities

Weld & Assembly

�61 Flexible weld cells configuredfrom 142 robots

�MIG Welding Cells – 10

�Projection Welding �Laser Welded Blanks

�Paint

�Post paint assembly

Stamping Capability

�Progression – 200t / 350t / 600t

�Transfer – 600t / 1800t / 2500t �Tandem (Automated) – 500t / 600t

�Blanking – 600t

�270 – 780 MPa Material

Manufacturing EvolutionManufacturing Evolution

2007 2008 2009 2010 2011J FMAMJ J ASOND J FMAMJ J ASOND J FMAMJ J ASOND J FMAMJ J ASOND J FMAMJ J ASOND

建付建付建付建付けけけけ不不不不具合具合具合具合『『『『００００』』』』

Evolution / Cap upEvolution / Cap up

STEP-2 DM 650pcs/2sSTEP-2 DM 650pcs/2s

Daily completion/Stable productionDaily completion/Stable production

2 shift operation with Delivery scheduleadherence

2 shift operation with Delivery scheduleadherence

New Model

Welding Evolution Flexible Line

2. Procedure review (Operation system)2. Procedure review (Operation system)

3. Tools review (Packaging, replenishment flow)3. Tools review (Packaging, replenishment flow)

4. Plant layout review / Linear cell layout4. Plant layout review / Linear cell layout

1. Structure review（（（（Organisational structure / Role&Resp)1. Structure review（（（（Organisational structure / Role&Resp)

2010/12ConsolidationConsolidation

STEP-1A CD combineSTEP-1A CD combine

2008/12

Line n

ormaliz

ation,

Linear

cell la

yout,

Machi

ne cap

ability

increa

se

Reduce D/timeTemporary 3shifts structure

Parts supply innovation

Linear cells/ Capacity upLinear cells/ Capacity up

STEP-1 B.D line 540pcs/2sSTEP-1 B.D line 540pcs/2s

Constit

ution ev

olution,

Cell re

arrange

ment STEP-3 Line 1 650 / 2s+flexible

Line 2 600 / 2s

STEP-3 Line 1 650 / 2s+flexibleLine 2 600 / 2s

Line constitution evolutionLine constitution evolution

TS16949TS16949ISO9000ISO9000

Material FlowMaterial Flow

2007

� No dedicated material locations� Material flow not transparent� High main line losses from shared

downstream processes� Indirect & direct labour inefficiency� FLT routes not defined

2012

� Electronically controlled storage and line replenishment

� Logical material flow� Consolidation of shared facility

Inspect5%

Load/ UL29%

Walk17%

Move40%

Cycle St9%

4ST2ST 3ST1ST

Inspect12%

Load/ UL22%

Walk12%Move

16%

Cycle St8%

Operation30%

Operator 2 Operator 1

65”Cycle

Walking & moving parts

28%

49”Cycle

Walking &moving part

57%

Load/ UL45%

Walk4%

Move10%

Cycle St4%

Inspect6%

Wait31%

45”Cycle

Walking &moving part

14%

LinearStationary

COST COMPETITIVENESS CAN BE IMPROVED THROUGH THE REDUCTION OF NON VALUE ADDED ACTIVITY

待機

検査

移動歩行

Concept AnalysisConcept Analysis

Benchmark Benchmark -- ProductivityProductivity

Nth AmericaNo1

Nth AmericaNo2

NANo3

17

13

16 15,3

9,78,4

10,5

UK

5

10

15

20

Ass

oci

ate

Pro

du

ctiv

ity

Main

Sub

Region

REGIONAL ANALYSIS

489

533

588

708

660 671 654 644684 677

652 656

607 608

553515

491 497 494 495 496 491

539

591

429

243

460 453

524

416

416

424343

358 419419 419 420

485

540540 540 572 571

570

544540 539 540 539 540 538 496 444

417

100

148 14196

83

0

600

1200

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

CR-VCIVIC

Main improvementMain improvement KPIKPIss

960

1100

1200

1040

640

2007 2008 2009

430

Unit： Car sets

Production Volume / day

Total

4 m

onth

s sh

utdo

wn

perio

d

Half level of production capacity

CR-VBHD

CIVICBHD

CIVICDPR

CR-VDPR

CIVICFSF

CR-VFSF

CR-VRR FRM

CIVICRR FRM

2010

Capacity

CIVIC 600

CR-V 540

JAZZ

TOTAL 1,140

A LINE CIVIC

B LINE CR-V

C LINE CIVIC

D LINE CR-V

Daily volume W orking time

Shift 1 Shift 2

296

201

497

7.9

6.0

13.8

CR-VCIVIC

Consolidation Cells activity

CIVICCR-VBHD

CIVICCR-VDPR

CIVICCR-VFSF

CIVICCR-VRR FRM

2010

CR-VCIVIC

Comple

te

Capacity

CIVIC 600

CR-V 540

JAZZ

TOTAL 1,140

A LINE CIVIC

B LINE CR-V

C LINE CIVIC/CR-V

Shift 2

296

201

497

7.9

6.0

13.8

Daily volume W orking time

Shift 1

Consolidation Cells activity

Line InnovationLine Innovation

�Reduced potential for quality concerns

�Globally competitive associate

productivity� Improved floor space utilisation

�Group wide process standardisation

�Tooling cost reduction

Innovation LineCurrent Line

25 m

50 m

75 m

100 m

125 m

TS16949 Approved

ISO 9001 Approved

Strategic Supplier

Supplier StrategySupplier Strategy

Strategic24%

Other8%

Customer nomination

68%

Strategic25%

Customer nomination

58%

Other17%

Other7% Strategic

39%

Customer nomination

54%

2008 2009 2010

9990

98 98

110

2 2

0%

20%

40%

60%

80%

100%

2006 Model 2007 Model 2011 Model Planning Model

Per

cen

tag

e S

pen

d

Local KD

European & Global Model SourcingEuropean & Global Model Sourcing

EuropeanModel

EuropeanModel

Low Cost Country SupplyLow Cost Country Supply

Start up

Employees

Press Range

Factory (m2)

Area (m2)

Turnover (£k)

Start up

Employees

Press Range

Factory (m2)

Area (m2)

Turnover (£k)

Start up

Employees

Press Range

Factory (m2)

Area (m2)

Turnover (£k)

Start up

Employees

Press Range

Factory (m2)

Area (m2)

Turnover (£k)

Start up

Employees

Press Range

Factory (m2)

Area (m2)

Turnover (£k)Start up

Employees

Press Range

Factory (m2)

Area (m2)

Turnover (£k)

20/05/99

407

250t – 1500t Tandem, Transfer, Prog

12,117 m²

41,225 m²

14,889

01/02/06

01/08/9501/10/06

27/04/05

29/12/02

863

500t – 2500t Transfer, Prog

25,000 m²

69,637 m²

44,914

1212

300t – 2500t Tandem, Transfer, Prog

26,721 m²

127,731 m²

113,085

658500t – 2500t

Transfer, Prog

26,721 m²

127,791 m²

9,273

846

150t – 2500t Tandem, Transfer, Prog

19,664 m²

36,800 m²

72,174

58

Die Manufacture

2,800m²

2,800m²

891

Press ToolingPress Tooling

UK, £149,500,

3%

Thai, £184,271,

3%

China, £1,233,755,

21%

Japan, £4,289,667,

73%

Japan, £7,941,911,

69%

China, £2,675,765,

24%

Thai, £404,757,

4%

India, £286,554,

3%

Thailand

UK, £833,276,

7%

Japan, £11,963,986,

93%

2006 Model 2011 Model Planning Model

UK Tooling CompetitivenessUK Tooling Competitiveness

446420

304

26

116

0

100

200

300

400

500

Japan Gap UK Gap China

To

olin

g V

alu

e (£

k)

379

243

136

0

100

200

300

400

500

Japan Gap UK

To

olin

g V

alu

e (£

k)

200T Press Tooling Weld Tooling

Systems DevelopmentSystems Development

Systems DevelopmentSystems Development

� Integrate weld cell and MRP system� ‘Real time’ production status

�Manufacturing data input at source

�Scope to expand functionality

Systems DevelopmentSystems Development

Kanban scanned at cell. When stock of child parts falls below threshold a transport task is

created

Transport task created and shows up on Material Service users scanner. Shows user

where to pick stock from in Warehouse.

Once dropped to GATEWAY Line Replenishment users receive job on scanner.

Shows user which cell parts need to be dropped to.

Stillage

Transport Task Application

1

A

3 42

Parts received from supplier

Parts located and location input into scanner – automatically

stored in database

Supplier creates label from UYT Supplier site /

application

Stillage scanned at UYT and booked into IFS

automatically from scanner

Console shows all located stock and space available across all

locations

Stillage

Warehouse Management System

In House software Development,

For stock management system.

Customer cost down

Systems DevelopmentSystems Development

£262K

Business benefit presented to IC on 17th Dec and included in 87Ki OB.£707.04K annual benefit based on 10yr depreciation of MHE

Press DevelopmentPress Development

magnet

lifter

Equipment specification makessmall blanks unstable

�Eliminate trim line concerns

� In-source 4 manual product lines

�89% improvement in small blankproductivity

�£34k saving per annum

SQDE PerformanceSQDE Performance

Delivery Efficiency

QualitySafety

Target

Soft DevelopmentSoft Development

StaffForum

UYTUYTWELD

PRESS

DIE MAINTENANCE

MAINTENANCE

PMC

INDIRECTS

3

2

1

1

2

2

PRINCIPLES

� Build on principles of trust, truth and teamwork

� Associates are values and feel

involved

� Effective communication & feedback

� Business performance can only be improved through associate engagement

� Facilitate consultation in response to company change

ENGAGE TRAIN SUSTAIN

Soft DevelopmentSoft Development

� Importance of marketing in a shrinking market� Identification of a provider relevant to the target

market

� Marketing Strategy� 4 new business leads

(2 major OEMs)

ACTIVITY RESULT

� Business improvement techniques� Benchmarking

� Coaching of 25 associates� Range of QCD improvements� Exposure to UK & Japan ‘best

practise’� Promote a career in manufacturing� Appraise graduate capability

� Develop University links� Graduate recruitment programme� Organisational capability

� Associate Graduate development� Increase graduate level representation

� Develop University links� Organisational capability

� Holistic approach to work force development� Facilitation of ‘active’ strategic model

� HR development plan� Clear HR activity prioritisation

� Apprenticeship scheme � Highly relevant development

� Green belt six sigma training� Quality improvement techniques

� Systematic problem solving� Significant Quality ROI

� Associate lean manufacturing development� Establishing a KTP

� Develop University links� Technology/ process development

� Associate CQI development � Develop University links� Organisational capability

Thank you