Continuous Production Model SAMPLE

1. PRECISION AUTO BODYContinuous Production Model The hours of operation are as follows: Monday thru Friday 8am – 5pm

2. COUNTINUOUS PRODUCTION MODEL: a designed process of interconnecting events that allow production to flow freely with predictable consistent results. Everyone must have a clear understanding of our process so the consistent desired predictable result can be achieved.

3. Model Overview # 1 : The production model is broken into four color coded process zones. Everyone must understand that each process zone within our shop shall have goals and tasks that will require completion before the vehicle can move to the next process zone. # 2 : Each step in our process reduces the size of the vehicle to enter the fast track process zone. The repair no matter what the original size of the repair was. Building the vehicle up in the red process zone, with 2 to 3 hours of hands-on repair work, qualifies # 3 : Visual management controls in place will aid the production process so that it can be understood at a glance. # 4: throughout the process there will be four repair verifications within our process, the repair check point will help aid in quality audit and pace the pulling of work from each process department zone.

4. THE FOUR COLOR PROCESS ZONE Red Orange Green Purple

5. How the Red Process Zone is Designed To make this more visible, the areas within the Red Process Zone should be color coded. Red Stripes on the floor. Red color overhead signs with the name of the area. This will make it easier to see and understand what zone the vehicle is in, plus what needs to be completed on the vehicle before it can move to the next colored zone. Red Process Zone

6. How the Red Zone Process Works The Red Process Zone works much like a modified traditional body shop. Work in this zone can be anything from body work that will take longer than 3 hours to repair, suspension repair, body panel replacement, frame pulling to structural repair or replacement. Within the Red Process Zone you may work on vehicles that have not received all the parts. Red Process Zone

7. Strategic Disassembly/Repair Planning Based on what needs to be done to the vehicle and the size of the repair and how much time it will take to complete the repair to a certain point. In Repair Plan Disassembly it will be determined if the vehicle meets the criteria to be placed directly in the Orange Process Zone for repair. Repair Plan Disassembly is very much tied to the Pulling Department. If you have a vehicle that requires pulling and measuring the estimate should not be locked until pulls are made. These pulls should be done the same day where possible. Once the pulls are made, times for conjunctive repairs can now be determined. Damaged welded panels that need to be replaced are removed where possible. Mechanical and Suspension damage identified and diagnosed. Red Process Zone

8. REPAIR PLAN AUDIT IS CONDUCTED THROUGH THE VISUAL MAPPING PROCESS AND ALL ON VEHICLE NOTES ARE APPLIED Reducing the possibility that anything downstream from that point could stop the vehicle from going forward. Repair plan is finalized and all parts ordered. Vehicle is then placed in the Parts Waiting area. Red Process Zone

9. Structural Repair and Building Area If no parts are needed to complete the next part of the repair, the vehicle may move to the next Red Process Zone building repair area. Under no circumstances should the vehicle be allowed to move to the Orange Process Zone area without 100% of all the parts received and verified to be the correct parts. If parts are needed…once the parts arrive and are verified correct, the vehicle is moved to the Structural Repair Area in the Red Process Zone. All structural repairs are completed at this time All welded on panels are install i.e. Core supports, Aprons, Rail, Quarter Panels Vehicle is re-measured on the floor to verify correctness and printout placed in file and vehicle Vehicle is move to Red Process Zone Paint Cut-In Red Process Zone

10. Paint Cut-In All paint cut-in of the vehicle is complete in this process… Door openings Core support Aprons and rail Trunk openings Once all cut-in has been completed the vehicle can be moved to the build area. Red Process Zone

11. Build All pre-build takes place at this time, insuring proper fit of parts. All Mechanical build Radiators and A/C condensers Vehicles that come from the Red Process Zone have had all the variables taken out of the repair. The randomness of different size repairs has been reduced to a very predictable size. Special needs have been addressed i.e. air bags, codes cleared, suspension and wheel alignments, all mechanical. The Red Process Zone allows vehicles to move through the balance of the repair process at a very predictable pace. Red Process Zone

12. Goal and Repair Verification Audit Prior to “Ready For Production” repair verification hand off, the vehicles requires only 2 to 3 hours of hands on repair or parts replacement or less to be complete. Proper operation, fit and gaps of all repaired or replaced areas. All suspension replacement and Wheel Alignment completed. All Mechanical and electrical repairs completed. All structural repairs completed. All paint cut-in completed Air Bag replacement and codes cleared. All repair verification audit met. Red Process Zone

13. TELL ME THE RULES AND I WILL SHOW YOU HOW TO WIN THE GAME Red Process Zone

14. Rules Damage Analysis of all vehicles Complete disassembly of all damaged areas Paint color variant obtained and Color mixed Color spray out All Structural Pulling and Measuring Repair Plan Finalized All Parts ordered and received All Structural Repair All Pre-fit of bolt on parts All welded-on parts replaced and measurements verified Proper operation, fit and gaps of all repaired or replaced areas All vehicle paint cut-in All damaged parts identified and replaced Wheel Alignment completed All mechanical and electrical repairs including engine R&I Cooling and AC systems recharged and checked Damaged Air Bag and Sensors replaced and codes cleared Interior Build if needed All Quality Standards met Red Process Zone

15. How the Orange Process Zone is Designed To make this more visible, the areas within the Orange Process Zone should be color coded. Orange Stripes on the floor. Orange color overhead signs with the name of the area. This will make it easier to see and understand what zone the vehicle is in, plus what needs to be completed on the vehicle before it can move to the next colored zone. Orange Process Zone

16. How the Orange Process Zone Works The Orange Process Zone starts outside in the parking lot, in the area we know as “Ready for Production”. In order for a vehicle to be in this area, three things must be true It will take less than two or three hours of work to prepare the vehicle for Paint and Reassembly. 100% of ALL the parts needed have been received and verified. ALL the Goals of the Red Process Zone have been met. Orange Process Zone

17. Goals Deliver to the Green Process Zone ONE vehicle every 60 to 90 minutes or less. Deliver to the Green Process Zone (Paint) vehicles that meet all Quality standards, free of defects i.e. sandpaper scratches and pinholes. Deliver to the Green Process Zone vehicles requiring only 60 to 90 minutes or less of hands on parts installation in the reassembly area. Verify that any issue that could stop the vehicle from going forward has been addressed and completed. Orange Process Zone

18. Goal and Repair Verification Audit Body repair Parts replacement Panel alignment and proper operation Meet all Quality Standards, free of defects i.e. sandpaper scratches and pinholes. Anything that is required to reduce the size of the vehicles to require only 60 to 90 minutes or less of hands on parts installation in the Reassembly area. Verify that no issue could stop the vehicle in Reassembly. Orange Process Zone

19. Rules No vehicles in this zone without ALL 100% of their parts received and verified. No repairs that will take longer than 3 hours to complete. All quality check points prior to entering the production flow line have been completed, passed and signed off. Only pass to paint quality repairs that won’t need rework. Only pass to reassembly vehicles that can be reassembled in less than 90 minutes. Orange Process Zone

20. How the Green Process Zone is Designed To make this more visible, the areas within the Green Process Zone should be color coded. Green Stripes on the floor. Green color overhead signs with the name of the area. This will make it easier to see and understand what zone the vehicle is in, plus what needs to be completed on the vehicle before it can move to the next colored zone. Green Process Zone

21. How the Green Process Zone Works The Green Process Zone starts in the Paint Buffer. In order for a vehicle to be in this area, three things must be true Items remaining for Reassembly to install on the vehicle will take less than 90 minutes to install. 100% of ALL repairs have been completed and quality has been verified. ALL the Goals of the Orange Process Zone have been met. Green Process Zone

22. Goals Paint Department Paint to deliver to the Green Process Zone (Reassembly) ONE vehicle every 60 to 90 minutes or less. Deliver to the Green Process Zone (Reassembly) vehicles that meet all Quality Standards, free of defects i.e. color match. Free of needing any correction of any kind. Green Process Zone

23. Re-Assembly Department Reassembly to deliver to the Green Process Zone (Detail) ONE vehicle every 60 to 90 minutes or less that has achieved all Quality Standard. All customer needs and concerns addressed and corrected. A vehicle that has passed all quality check points. Detail to deliver to the Purple Process Zone ONE vehicle every 60 to 90 minutes that has been properly cleaned and has passed the Fit and Finish Inspection. Goals Green Process Zone

24. Goals Detail Department All customer needs and concerns addressed and corrected. A vehicle that has passed all Quality Check Points including the CSR Fit & Finish check. Detail to deliver to the Purple Process Zone ONE vehicle every 60 to 90 minutes that has been properly cleaned. Green Process Zone

25. Goal and Repair Verification Audit All paint prep work All paint work Meet all Quality Standards, free of defects i.e. color match, correction of any kind. Paint to produce ONE vehicle every 60 to 90 minutes. Reassembly to install all parts remaining on parts cat i.e. bumper, headlamp, grille, moldings, door handle, weather strips, etc. Quality met and Quality inspection completed. Reassembly to deliver to the Green Zone (detail) ONE vehicle every 60 to 90 minutes. Vehicles cleaned inside and out, including under hood if we worked on the front or inside trunk if we worked on the rear of the vehicle. Fit and Finish Inspection complete. Green Process Zone

26. Rules Never place a vehicle in the Purple Process Zone that has something that has not been completed. All Quality Standards met and verified. Green Process Zone

27. How the Purple Process Zone is Designed To make this more visible, the areas within the Purple Process Zone should be color coded. Purple Stripes on the floor. Purple color overhead signs with the name of the area. This will make it easier to see and understand what zone the vehicle is in, plus what needs to be completed on the vehicle before it can move to the next colored zone. Purple Process Zone

28. How the Purple Process Zone Works In order for a vehicle to be in this area, three things must be true. There are NO items remaining to be completed on the vehicle. Quality has been achieved and verified; customer concerns have been addressed and verified. The collective Goals of all the process zones have been met. Purple Process Zone

29. Goals Is to provide the best possible customer experience and service that far exceeds the customer’s expectations. A controlled area to deliver to the customer their properly staged vehicle. No Surprises! Delivering from the Purple Process Zone enables the CSR to schedule the time of vehicle pick up with the customer so we can provide a focused attention to the customer that makes them feel valued. The customer is never notified that the vehicle is ready for pick up until the CSR or person that will be delivering the vehicle back to the customer, has been able to review the vehicle and complete the Final Inspection Checklist. This gives the CSR the opportunity to complete the a final fit and finish review of the vehicle without having the pressure of the customer picking the vehicle up in 10 minutes. This helps prepare the CSR to resell the vehicle to the customer during delivery. Allows us to take pride and have confidence in knowing that we have done everything with quality. Purple Process Zone

30. Goal and Repair Verification Audit CSR’s to complete a final review of the file and repairs made to the vehicle. Complete a Fit and Finish inspection of the vehicle. Verify that we have done everything with quality. Double check that ALL the customers concerns have been addressed and corrected. Once all these tasks and Goals have been achieved the vehicle is considered “Complete”. Contact the customer and schedule the vehicle delivery. Purple Process Zone

31. Rules There are NO items remaining to be completed on the vehicle. Quality has been achieved and verified, customer concerns have been addressed and verified. The customer Must Not be notified that the vehicle is ready for pick up until, the CSR or person that will be delivering the vehicle back to the customer, has been able to review the vehicle and completed the Final Inspection Checklist and everything is ready for the customer. Purple Process Zone

32. Contact Information RANDY S FERRESE SR. 824 BLUE BIRD CIRCLE MAYS LANDING, NJ 08330 609 553 4244 FERRESEWV77@HOTMAIL.COM