The document discusses operational excellence and optimizing process performance at Freudenberg-NOK. It provides an overview of the company, its focus on continuous improvement through its GROWTH program, and its implementation of lean manufacturing principles. It highlights some of Freudenberg-NOK's lean transformation successes over 16+ years, including improvements in people, processes, and control, and secrets to its success like top management support, a certification process, and quantifying results.

1. Carlos Eduardo DaSilva Global Quality Manager Vibracoustic North America A Division of Freudenberg-NOK General Partnership Hannover Fair – Hannover, Germany – April 2009 Operational Excellence Optimizing Process Performance

3. Organization Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303

4. Global Presence Locations in 53 countries Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303

5. Corporate Culture People Leadership Responsibility Innovation Value for Customers The Guiding Principles are a short version of the Groups Business Principles, summarized for our employees around the world, our business partners and the public at large. Guiding Principles Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303 Long Term Orientation

6. Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303 Safety Safety Empowerment Through Team Harmony SETTH

7. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Business Group : Freudenberg-NOK

8. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Our business model is based on leading edge Technology combined with the relentless pursuit of operational excellence through the Growtth ® (Get Rid of Waste Through Team Harmony) continuous improvement program. Business Group : Freudenberg-NOK

10. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence + Vibration Vibracoustic = Acoustic We convert noise and vibration into sound and comfort. www.vibracoustic.com Vibracoustic North America

13. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Mold Sit Spring QC Inspect Ship Trim Sit Sit Sit QC Inspect Sit Pack Spring Trim Mold Shipping Packing QC Vision System From Conventional to Lean Manufacturing

14. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Decision Based in Facts

15. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Changing Behavior TEAM BEHAVIOR Management INDIVIDUAL BEHAVIOR SKILLS INDIVIDUAL BEHAVIOR SKILLS INDIVIDUAL BEHAVIOR SKILLS INDIVIDUAL BEHAVIOR SKILLS EXECUTION ATTITUDE COMPETENCE ATTITUDE COMPETENCE Assurance ATTITUDE COMPETENCE ATTITUDE COMPETENCE Assurance KNOWLEDGE KNOWLEDGE KNOWLEDGE KNOWLEDGE

16. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence PROCESSES CONTROLS PEOPLE Key Concept

17. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence MANAGEMENT LEVEL Product Assurance ENGINEERING LEVEL Quality Control OPERATOR LEVEL Business Management Effectiveness Efficiency KPC KPP KPI KPP – Key Process Parameters / KPC – Key Product Characteristics / KPI – Key Performance Indicator Key Metrics

18. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence People Improvement Since 1993, we reported over 75,000 times that people participated in continuous improvement activities

19. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Process Improvement Over 31,000 times in 16 years we improved processes, saving more than US $225 million between 2000 and 2006.

20. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Control Improvement 189 Black Belt Projects Completed 197 Green Belt Projects Completed 67 Certified Black Belts 482 Certified Green Belts

21. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Production Preparation Process – 3P A. Information Phase - Define Proposed State B. Creative Phase - Kaizen C. Redefine Phase - Define New Proposed State Freudenberg-NOK team collecting data during the simulation of a future production cell. Example Before After People 27 9 Floor Space (sq. ft.) 3500 1100 Distance Traveled >100 mi. 21 ft. Production Lead Time 21 Days 7 hrs. Mfg. Cost (indexed) 100 71 Capital Cost (indexed) 100 57

22. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Vibracoustic Performance Recognition

23. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Established in 1988 to promote an awareness of lean manufacturing concepts and to recognize companies that achieve world-class manufacturing status. The Nobel prize of manufacturing is named for Japanese industrial engineer Shigeo Shingo, one of the world’s leading experts in improving manufacturing process. He helped create the renowned Toyota Production System. Dr. Shingo is the author of A Study of The Toyota Production System and The Shingo System for Continuous Improvement . The Shingo Prize

25. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence FOR ALL “ EFFECT ” WE CAN TOGETHER FIND A CAUSE Journey to Excellence

31. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Questions?

32. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Thank You! Carlos Eduardo DaSilva Global Quality Manager + 1(603) 628 7113 [email_address]