Ford Motor Co' Dearborn Engine Plant

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Haas TCM and Automotive Industry Programs
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Agenda

• Who We Are
• What We Do and How We Add Value
• Automotive Experience and Case Studies
• Summary
• tcmISR Haas TCMs Best-in-Class Technology
  Platform (includes HaasTecR, Haas TCMs Process
  Control Technology)

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Haas TCM Who we are
Haas TCM results from the merger of Radian TCM
and Haas Corporation Employees 365 Gross
Revenues 240 million/yr Facilities Served
250 Enterprise-Wide Clients 7 Countries US,
Canada, Mexico, Argentina, Brazil, China,
Korea, Singapore, India, Israel, Turkey,
Italy, England, France, Belgium, Ireland,
Poland, Greece, Hungary, Romania Corporate
Operations West Chester, PA (HQ) Austin,
TX- Purchasing Data Center
Haas TCM the largest company totally dedicated
to Chemical Management
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Haas TCM What We Do
Chemical Lifecycle Work Processes Bundled Into a
Single Solution

• Sourcing Procurement gt all chemicals -
  Direct and Indirect - Catalog and non-catalog
  items
• Supply Chain and Logistics
• Inventory management - Offsite and Onsite
• Just-In-Time (JIT) delivery
• On-site services/Process Benchmarking and
  Improvements
• Automated EHS compliance and reporting
• Hazardous waste management

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Haas TCM Our Customers
Some Customers by Industry Sector
Research Laboratory
Aerospace Defense
Industrial Manufacturing
Food Beverage
Power Generation
Automotive
Electronics
Stanford Linear Accelerator Univ Cal Merced
(pending)
Sauer Danfoss Arvin Meritor Dana Corp SPS
Technologies
Boeing Lockheed Martin Raytheon United
Technologies (UTC) Southwest Airlines Continenta
l Airlines General Dynamics BAE Systems Israeli
Aircraft Industries (IAI) US Air Force
General Motors Ford Daimler Chrysler Volvo GEMA Al
lison Transmission
First Energy Pacific Gas Elec
(PGE) Constel-lation Energy
Miller Brewing
Seagate Technol-ogies DRS Corp Delphi Corp
- Denotes an enterprise customer, or one for
whom Haas TCM provides service to all or most of
customers facilities
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How Does Haas TCM Add Value?

• Four Key Resources Designed Specifically for
  Chemicals

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1. tcmISR - Advanced Information Transaction
Platform
Creates Virtual Network of Chemical Lifecycle
Stakeholders
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2. Streamline Chemical Supply Chain
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3. Build and Manage Process Knowledge Resources
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4. Incentives Aligned with Those of Our Customers

• 3 Components of Haas TCM Compensation
• Fixed Service Fee
• Chemical Cost Pass Through (no markup)
• Savings Gain Share
• or
• similar pricing mechanisms (eg CPU, etc)

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Results Savings, Use and Waste Reduction, EHS
Stewardship
Case Study Raytheon Corporation- All Chemicals
(Direct and Indirect)
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Haas TCM Automotive Industry Experience
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Haas TCM Automotive Customers Sites

• Powertrain Programs
• GM Tonawanda 1,600,000 Engines
• GM Livonia 200,000 Engines
• GM Ramos Arizpe 550,000 Engines
• GM Ramos Arizpe 350,000 Transmissions
• GM Toluca 400,000 Engines
• Ford Essex 700,000 Engines
• Ford Chihuahua 200,000 Engines
• Allison Transmission 250,000 Transmissions
• Daimler Chrysler Detroit Axle 1,100,000 Axles

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Haas TCM Automotive Customers Sites (cont)

• Assembly Programs
• GM Flint Truck , Michigan DaimlerChrysler Newark,
  Delaware
• GM Oshawa Car, Canada DaimlerChrysler Sterling
  Heights
• GM Oshawa Truck, Canada DaimlerChrysler Warren
  Truck, Michigan
• GM Baltimore, Maryland Ford, Cuautitlán, México
  
• GM Moraine, Ohio Ford, Hermosillo, México
• GM Craft Center, Michigan Ford, Camacarí, Brazil
• GM Lansing Car, Michigan GM Toluca Mexico
• GM Grand River, Michigan GM Ramos Arizpe, Mexico
• GM Wilmington, Delaware GM Shanghai, China
• GM Ft. Wayne, Indiana GM Rosario, Argentina

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Haas TCM Automotive Customers Sites (cont)

• Metalworking / Components Programs
• Sauer Danfoss, Ames, IA
• Sauer Danfoss, Freeport IL
• Sauer Danfoss, LaSalle, IL
• Sauer Danfoss, West Branch, IA
• SPS Technologies, Pennsylvania
• GM Oshawa Stamping, Canada
• GM Ramos Stamping, Mexico
• GM Bedford Casting Plant, Ohio
• Delphi Battery, Oshawa, Canada
• Delphi Triaxle, Oshawa, Canada

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Haas TCM Case Studies for Automotive Facilities

• GM Oshawa (Canada)
• 2. GMM Ramos Arizpe (Mexico)
• 3. Allison Engine (US)

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Case Study 1 GM Oshawa Complex

• A. BACKGROUND Chemical Manager since 1996
• Truck Plant 300,000 Trucks
• Car Plant 1 250,000 Cars
• Car Plant 2 270,000 Cars
• Stamping Plant 80,000 metric tons per year
• Battery Plant 2,000,000 batteries per year
• Tri-Axle Sub Assemblies for Car and Truck
  Plant
• Engineering 10 boilers
• Central Maintenance
• Wastewater Treatment of 500 million gal /
  year

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Case Study 1 GM Oshawa Complex (cont)

• B. ACCOMPLISHMENTS
• All tri-chlor, naphthalene, and formaldehyde
  removed from plant
• Consolidation of spray cans by 30, from 9
  suppliers to 1
• Elimination of all plastic drums containing oils
• Drum Management Program reduced on site drums
  from 600 to 150
• Consolidated water treatment suppliers from 6 to
  2 with a 50 cost savings to the plant
• Chemical usage and waste reduction throughout the
  plant

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Case Study 1 GM Oshawa Complex (cont)
C. SAVINGS
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Case Study 1 GM Oshawa Complex (cont)
C. SAVINGS
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Case Study 1 GM Oshawa Complex (cont)
C. SAVINGS
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Case Study 1 GM Oshawa Complex (cont)
C. SAVINGS
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Case Study 1 GM Oshawa Complex (cont)
C. SAVINGS
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Case Study 1 GM Oshawa Complex (cont)
C. SAVINGS
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Case Study 2 GM Ramos Arizpe

• A. BACKGROUND Haas TCM Chemical Manager since
  1998
• 180,000 cars
• 75,000 Aztecs
• 350,000 transmissions
• 550,000 engines
• Stamping plant
• Waste water treatment 100 million gal/year
• Process Water treatment of 200 million gal/year
• Approximately 90 staff on-site providing a wide
  range of services

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Case Study 2 GM Ramos Arizpe (cont)

• Assembly Plant
• 3 shift coverage of paint detackification and
  sludge removal system including maintenance and
  operation of all equipment and maintenance of the
  sludge pit area.
• Full chain lubrication program including filling
  reservoirs and servicing automatic feed equipment
• Annual sludge pit cleaning including sludge
  disposal
• Engine Plant
• Full service lube program including lubrication
  and minor (lube related) maintenance of all
  equipment on regularly scheduled basis.
• Operation of all central system filtration
  equipment including area maintenance and chip
  removal.
• Operation of coolant lab which includes all
  sampling, testing, and material additions to
  coolant systems.
• Operation of washers for separators and internal
  packaging for parts.

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Case Study 2 GM Ramos Arizpe (cont)

• Transmission Plant
• Full service lube program including lubrication
  and minor (lube related) maintenance of all
  equipment on regularly scheduled basis.
• Operation of all central system filtration
  equipment including area maintenance and chip
  removal. Material delivery to point of use
• Operation of transmission plant lab which
  includes metallurgical and quality testing.
• Maintenance of bulk gas tank farm and delivery
  systems
• Complex Wide
• Welding services for maintenance and small
  construction projects employing 8 full time
  welders and coordination of outside contractors.
• Bi annual cleaning of all cooling towers
• 3 Shift coverage of raw water and wastewater
  treatment laboratory
• All chemical delivery receiving, unloading, and
  movement to on-site chemical storage area.
• Management of chemical stores and disbursement of
  chemical used.
• Collection and return/disposal of all chemical
  containers

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Case Study 2 GM Ramos Arizpe (cont)

• B. ACCOMPLISHMENTS
• Managed chemical changes for new Transmission
  Plant
• Pre-construction engineering services for
  chemical storage and delivery systems
• Consolidation of filtration systems to avoid
  capital expenditures
• Managed chemicals for equipment run-off at
  manufacturers facilities
• Consolidation
• Consolidation of vendors from 140 to 67 ( 52)
• Consolidation of products from 282 to 208 ( 26)
• Reduction in drums from 4800 to 600/yr ( 87)
• ISO 14000 Certification
• Set operating parameters for various systems
• Developed recommendations for forms and
  instructions
• Trained on-site staff and Tier II staff
• Assisted in achieving water reduction goals

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C. Savings
Case Study 2 GM Ramos Arizpe (cont)
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Case Study 3 Allison Transmission

• A. BACKGROUND
• Haas TCM provides all on site staffing, process
  improvement, environmental and reporting
  functions.
• Program started January 2001
• 11 on site staff members
• Haas supervises UAW hourly maintenance workers in
  the area of coolant management - three shift
  coverage with responsibility for all dump and
  recharge operations, chemical additions, and sump
  cleanouts.

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Case Study 3 Allison Transmission (cont)

• B. ACCOMPLISHMENTS
• Reported dermatitis incidents reduced 85
• Updated 1326 MSDS and Safe Use Instructions
  earning special acknowledgement from GM/UAW
  safety audit
• Reduced transmission defects and warranty costs
  by 600,000 per year

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Case Study 3 Allison Transmission (cont)

• C. SAVINGS
• Over 1,100,000 in other documented and
  approved savings including
• 800,000 in chemical cost book savings.
• Recycling program saving 85,000
• Reduction in overtime for maintenance of 56,000
• Washer design modifications reducing dump cycles
  saving 137,000

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Summary
Haas TCM Attacks Costs in Five Value Pools of
the Chemical Lifecycle
2. Logistics Distribution
4. Waste
1. CHEMICALS PURCHASED
3. CHEMICAL USE

• Air
• Water
• Haz Waste

Chemical Costs
2. HANDLING, SPOILAGE, SCRAP
4. WASTE RATE
1. UNIT PRICE
3. CHEMICAL EFFICIENCY
5. Management Costs, incl Env Health Safety