Case Study - OMNEX, Inc.

Case Study Large Automotive OEM – FMEA Managed Service

Failure Mode & Effects Methodology

Process Flow

Block Diagram Customer Requirements

Design Inputs

Process FMEA

System FMEA

Control Plans

Shop Floor Checklists © 2010 Omnex Inc

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Automotive OEM – FMEA Managed Service Design Failure Mode and Effects Analysis -- Distribution of Recommended Actions

After AQP

Before AQP

Process Issue 13%

Other 5%

Analytical / Math 12% Verification / Testing 13%

Physical Test 10%

Review, Investigate, Evaluate 48%

SSR 11%

Analytical 9% Design Change 7% Supplier 6%

© 2010 Omnex Inc

Benchmark 20%

Monitor 2%

Process Escalation Review 1% 3%

Design Improvements 40%

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

Note: Import Brands Include Europe and Asia

Case Study Large Aerospace Engine Manufacturer

New Product Introduction & PPV Program Start

Experimental Product & Process Planning

Production PPV Activities Consolidation

Planning Product Design and Dev.

Ongoing Part & Process Control

Process Design and Development

Industrialization

Product and Process Validation Production Corrective Action Board activity

Plan & Define Program © 2010 Omnex Inc

Product Design & Development Verification

Process Design & Development Verification

Product & Process Validation

CAB Activity

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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 Study Truck – System Supplier

Operations Excellence MANUFACTURING

Materials FUNCTIONAL EXCELLENCE

Purchasing

Quality

6S/VISUAL WORKPLACE Team Skills FOUNDATIONAL EXCELLENCE

© 2010 Omnex Inc

QOS

Global 8D TS16949/APQP/PPAP

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Truck Industry Large Sub System Provider

187 DPM

Improvement

Before

After

Comments

Quality

Rejects measured in percentages

3 Years – 187 PPM

Implementation of APQP and PPAP internally and with Supply Base

Semiconductor Industry Transition

Semiconductor Assembly Council – Representing 95% of Chip Industry Outside Japan

Semiconductor Industry Methodology

8-D Customer Involvement Similar to Aerospace Industry

MSA, SPC, and Process Control

ISO TS 16949 plus APQP and PPAP © 2010 Omnex Inc

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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

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