Global Sourcing Excellence and Leadership

1. Global SEALs
•Examine “Inside Out” “Passion for Juice”
•Experience “First Hand”
•Due Diligence for the
“Juice” Edge
YOU CAN’T RESEARCH A SUPPLIER IN
ASIA FROM A CUBICLE IN THE STATES
Going the Extra Mile … for the Juice!
Going the Extra Mile … for the Juice!

2. Global SEALs
“Passion for Juice”
Global SEALs …
“Emerging Market” Leadership
Global Sourcing Excellence and Leadership
Global Sourcing Excellence and Leadership

3. Speed with Certainty
“Passion for Juice”
Going After the Juice … Mach 4
Going After the Juice … Mach 4

4. Global SEALs
“Passion for Juice”
SEAL Mission …
GET JUICE!
Every Second
Every Minute
Every Hour
Every Day
Global Sourcing Excellence and Leadership
Global Sourcing Excellence and Leadership

5. Global SEALs

6. Global SEALs
“Passion for Juice”
Duty:
Maximize Juice … Minimize Risk
Emerging Market Controls and Relations
Emerging Market Controls and Relations

7. Global SEALs
“Passion for Juice”
Strategy:
Offshore / Nearshore
Risk Mitigation
Risk Mitigation

8. Global SEALs
“Passion for Juice”
Emerging Market Leadership:
Intelligence / Relations (Region / Supplier)
Supplier Search
Supplier Selection
Economics
Qualification / Part Approval
Production and Productivity
Ongoing Inspection and Testing
Emerging Market CIA Intel
Emerging Market CIA Intel

9. Global SEAL DNA
“Passion for Juice”
• Athlete
Perseverance … Never Give Up!
• Cadet
Leadership … Getting Extraordinary Things Done!
• FBI
Investigate, Strategize, and Execute!
• CIA
Global Mindset!
Global Sourcing Excellence and Leadership
Global Sourcing Excellence and Leadership

10. Emerging Markets – Blue Expansion
• Argentina
• Brazil
• Chile
• China
• Colombia
• Czech Republic
• Egypt
• Hungary
• India
• Indonesia
• Israel
• Jordan
• Malaysia
• Mexico
• Morocco
• Pakistan
• Peru
• Philippines
• Poland
• Russia
• South Africa Big Six: China India Indonesia Brazil Mexico Russia
• South Korea
• Republic of China (Taiwan)
• Thailand
• Turkey

11. Next Juice Mine is … ?
Countries based on World Bank income groupings for 2006 (calculated by GNI per capita, Atlas method).
██ High income
██ Upper-middle income
██ Lower-middle income
██ Low income

12. Small World … with Global SEALs

13. JuicEnomics
“Passion for Juice”
The “Juice”
Process and Flow
Speed with Certainty
Speed with Certainty

14. VMR
“Passion for Juice”
The Global SEAL Organization is focused on establishing
an Emerging Market Supply Base that will provide the
Firm an advantage over the competition. The
foundation of the strategy requires identification of
suppliers who can consistently meet the Firm’s
stringent quality requirements. The identification of
quality suppliers based up on a defined process used
throughout the Global SEALs Emerging Market Supply
Chain.
Value Managed Relationship
Value Managed Relationship

15. Supplier Snap Shot
“Passion for Juice”
What does a Supplier ‘look like’ that can give the
Firm a competitive advantage?
• Ability to meet or exceed product specification requirements
• Manufacturing processes capable of Best In Class quality -
Driving toward a 6 sigma capability - 1.33 Cpk.
• Low cost producer on a world scale
• Manufacturing process flows designed for Best In Class lead
times
• Leader in technology, keeps the Firm at the front of the
technology curve
• Continuous Productivity Improvement
Value Managed Relationship
Value Managed Relationship

16. Foundation for Global Sourcing Success
“Passion for Juice”
Professional Sourcing Team
Sourcing - Engineering
Quality - Local Nationals (SEALs)
Engineering & Quality
Sourcing & Manufacturing
Product Knowledge
&
Manufacturing Know How
Global SEALs …
Global SEALs …

17. Internal Sourcing Team
• Developed an Internal Sourcing “Passion for Juice”
Team for each product.
• Quality Assurance Manager
• Global Sourcing Manager/Black Belt
(North America Based)
• Full-time Engineer
• Operations Manager
• Supplier Quality Engineer/ Black Belt
(Local National SEAL)
• The Criteria for the team members:
• Manufacturing knowledge of the product
• Sourcing knowledge of the country
• 6 Sigma Controls in Tracking,
Repeatability, Quality, and Execution
• Producibility Controls (CTQ)
• Quality Control Process Mapping
CTQs = Supplier Selection and Producibility Controls
CTQs = Supplier Selection and Producibility Controls

18. CTQ … Selection
GLOBAL SEAL TEAM “Passion for Juice”
EVALUATION CRITERIA
TOTAL SYSTEMS PARTNERSHIP
COST COMMITMENT
TECHNICAL FINANCIAL
* Process CAPABILITY STRATEGIC * Management
* Material PERFORMANCE POSITION Quality
* Development * Process HISTORY * Information
* Quality * Material * Stability Sharing
* Inventory * Design * Quality * Industry * Investment
* Test * Delivery Reputation * Productivity
*R&D * Responsiveness Improvement
* Support * Warranty Plan
Process Activity Definitions -- 6 Sigma Quality
Process Activity Definitions 6 Sigma Quality

19. Global Controls for Risk Mitigation
“Passion for Juice”
• Supplier Selection • Part Approval - (Producibility)
•Supplier Survey •Tooling Qualification
•On-Site Supplier Audit •Measurement Systems Analysis
•C-TPAT Security Audit •Capability Analysis
•In Country SEAL Resources •Inspection & Test Plans
•Detailed RFQ’s •Performance Criteria
•E-Sourcing •Life Test & Certifications
6 SIGMA CONTROL … OVERVIEW
• On-Going Inspection & • White Paper – Supplier Selection / On Site
Audit
Testing • Manufacturing Process – Survey: Casting,
Forging, etc.
•Shared I&T Plans
• Producibility Controls – (CTQ in process)
•Incoming Inspection • Capability Analysis (CPK of 1.33 required)
•Regular Performance Testing • Life Test and Certification
•Supplier Product Certification • Product Failure Modes and Effects Analysis
• Quality Control Plan
•Material Certification • Project Monitoring Tools
6 Sigma Controls in Tracking and Execution
6 Sigma Controls in Tracking and Execution

20. 6 Sigma Process Controls = Customer Value
“Passion for Juice”
6 SIGMA CONTROL … OVERVIEW
• White Paper – Supplier Selection /
On Site Audit
• Manufacturing Process – Survey:
Supplier Part Casting, Forging, etc.
Selection Approval • Producibility Controls – (CTQ in Part
Approval Process)
Customer • Capability Analysis (CPK of 1.33
Value required)
• Life Test and Certification
• Product Failure Modes and Effects
Analysis
On-Going • Quality Control Plan
Inspection • Project Monitoring Tools – (On-
& Testing Going I & T)
6 Sigma Controls in Tracking and Execution
6 Sigma Controls in Tracking and Execution

21. CTQ … for the Present and Future
“Passion for Juice”
Companies do not compete …
Supply Chains do!
For Victory … 1 + 1 = 3 and 1 + 1 = 1.5
For Victory … 1 + 1 = 3 and 1 + 1 = 1.5