1. Integrating technology providers into the
cost improvement plan
E.P.I.C. Inc.
EPICPWR.COM
An Action Plan For
The Automotive Industry
Presented & Prepared by
Jason Gallion
A budget and planning proposal

2. Let’s go beyond traditional methods in which
others generate cost reduction techniques.
2010 6-Year forecast 2016
Piece Price Reduction

3. It’s time to go beyond even the most advanced
supplier collaboration and innovative models and
invite strategic innovation opportunities
Forecast data
ROI Presentation
Identified opportunities
Project Planning
Innovative
Technology
Welding &
Drilling
Solutions
Advanced
materials
OEM & their
Suppliers
Opportunities
Solutions
Process Control
Solutions

4. The OEM Supplier Relationship
The Purpose is to fund
innovation through mutual
benefits.
The Objective is the alignment of
cost reduction Technology and
cost improvement requirements.
The Mission is to provide new
cost improvement opportunities.
4

5. Mandatory 3% annual cost reduction
Supplier
Supplier Supplier
OEM
$96 Million Annually
47 Suppliers

6. 47 suppliers
$3.2 Billion Annual Sales
$96 Million Annual cost reduction
$27 Million Annual expenditures
To meet the OEM’s cost
reduction requirements, 47
suppliers will reduce their
annual sales by 3%
Approximately *$27 Million
allocated to meet the demand.
*$27M Allocated to
cost improvement
projects
$96M Cost
reduction
*Based on average cost improvement projects recorded during supplier survey
6

7. Min. Effort
Req’d Result
Effort vs. Result

8. OEM’s influence
8
Influence on process improvement... little with capital investment
Existing collaboration relationships limited to process improvement. Even
today, some suppliers resist or are reluctant to embrace influence from OEM

9. -Δ% Cost
Reduction
Target
OEM’s Problem…
Supplier
Base
Condition
Suppliers
individual
effort
9
Solution Categories:
Raw Materials
Material processing
Machining
Assembly
Packaging / Transportation
Tooling & Capital
Inspection & Testing

10. The Assured Cost Improvement Plan
10
“We must begin to collaborate at an even greater level to
achieve momentous cost reduction goals.”

11. • Supplier Survey
• Use forecast data…To, and when to consider three year forecast and six
year forecast
• Required cost reduction items
• Create piece price reduction targets
What you need to do…
11

12. Supplier
Supplier Supplier
Supplier
Supplier
3% Mandatory
Cost Reduction
Cost reduction
Met with actual cost improvement projects
Current State… The goal
The Goal
Supplier
12

13. The cost improvement platform
Forecast data
ROI Presentation
Identified opportunities
Project Planning
Solution Categories:
Raw Materials
Material processing
Machining
Assembly
Packaging / Transportation
Tooling & Capital
Inspection & Testing
Innovative
Technology
Welding &
Drilling
Solutions
High temp
insulation
materials
OEM & their
Suppliers
Cost Improvement
Opportunities
Technology Providers
Cost reduction
requirements
Opportunities
Solutions
Process Control
Solutions
13

14. Supplier Survey
Based on annual cost improvement
requirements an estimated $27 million
should be allocated towards cost
improvement expenditures, to meet the
annual 3% cost reduction.
14

15. Supplier survey, data intelligence
15

16. Forecast Data, 3-6 Year Plan
16
BPT Long Term Plan
ATM Summary Americas Mid-Term Supply Plan 10-1-071410
Part Daily Averages
KNT KD L4 L4 CRV
BPT L4
RDX 2WD
RDX 4WD
BPT 4Axis TL 4WD
TL 2WD
ODY
MDX
RIDGELINE
Accord V6
Accord V6 ( X-O ) 4WD
Accord V6 ( X-O ) 2WD
Acura V6 ( X-O )
Pilot 4WD
Pilot 2WD
BPT 6AT
BPT M/S & S/S
Total
110 87 87 85 85
0 0
6AT Total
ODY 6AT 6AT
B
4Axis BPT total
3085 1569
B
B
B
151
326
290 297 267
944
000
973
617 631
122122 120124
1263
29
50
117108
71
277
422
65 63
74
234 271
0 2919 2794
6778
176
144
1519
300
167
1592
3260
162
85 Ki 08-09M
1st 2nd
124 120
86 Ki 09-10M
1st 2nd 1st
87Ki 10-11M
1st 2nd 2nd
318
0
1241 1088 1741
310
25
465
0
88
0 0
84
2011
0 0 1656 1553
1st
304
89
476
1540
2012
568 727
1289
0
821
88 Ki 11-12M
2nd
M/S & S/S Total 5AT
DAYS
B
B
B
L4 CR-V 4WD (BPT Localize)
2680
2008
0
2009 2010
89 Ki 12-13M
289281
0
686
122 122
646
0
0
0
1154 0
0 0
323
36
410
102 102
44 44
1545
24
342
50 98
0
89
281
0
108
13
87
456483
33
0
00
0
327 327
134 132
467
280 605
73 73
171 155
86
1159
B
B
B
B
( L4 total )
L4 Element
L4 Accord
L4 CR-V 2WD
L4 Acc CT 2WD
B
B
122 122
131
101 89
86
0 0
364 351
774 746
0 0
43 43
102 102
0 0
449 436
523
259 259
0 0
33 205
85 85
69 69
76 76
370 370
169 156
314 290
954 1614
1236 676
147 635
1685 1112
2013
91 Ki 14-15M
1st 2nd
90 Ki 13-14M
1st 2nd
122 122
0 0
0 0
0 0
2014
0 0
BPT Long Term Plan
ATM Summary Americas Mid-Term Supply Plan 10-1-071410
Part Daily Averages
KNT KD L4 L4 CRV
BPT L4
RDX 2WD
RDX 4WD
BPT 4Axis TL 4WD
TL 2WD
ODY
MDX
RIDGELINE
Accord V6
Accord V6 ( X-O ) 4WD
Accord V6 ( X-O ) 2WD
Acura V6 ( X-O )
Pilot 4WD
Pilot 2WD
BPT 6AT
BPT M/S & S/S
Total
BPT
Counter
Shaft
Input Shaft
308 162
1432 1600 1400
2919 2794
110 87 87 85 85
T/S Total 144 280 605 954 1614
0
CR-V 4WD
M/S & S/S Total 5AT & 6AT
154 154
1563 1853
0 0
0 000
6AT
R97 C/S
RWE C/S
0
0
209
0 0
0 0 0
RWE Counter Shaft 0
R97 Counter Shaft
6AT Total
ODY 6AT 6AT
B
4Axis BPT total
1292 911
2174
3085 1569
3365
B
B
B
151
326
290 297 267
944
000
973
617 631
122122 120124
1263
29
50
117108
71
277
422
65 63
74
234 271
0 2919 2794
0
0 1327 1242
218 208
6778
176
1450 1508
313
1545
1195 1223
144
1519
3404
300
167
1592
2680
3260
162
85 Ki 08-09M
1st 2nd
124 120
86 Ki 09-10M
1st 2nd 1st
87Ki 10-11M
1st 2nd 2nd
318
0
1241 1088 1741
310
25
465
0
88
0 0
84
2011
0 0 1656 1553
1st
304
89
476
1540
2012
568 727
1289
0
821
88 Ki 11-12M
2nd
Total Counter Shaft
M/S & S/S Total 5AT
DAYS
B
B
B
L4 CR-V 4WD (BPT Localize)
2680
2008
0
2009 2010
89 Ki 12-13M
289281
0
686
122 122
646
0
0
0
1154 0
0 0
323
36
410
102 102
44 44
1545
24
342
50 98
0
89
281
0
108
13
87
456483
33
0
00
0
327 327
134 132
467
280 605
73 73
171 155
86
1159
B
B
B
B
( L4 total )
L4 Element
L4 Accord
L4 CR-V 2WD
L4 Acc CT 2WD
B
B
122 122
131
101 89
86
0 0
364 351
774 746
0 0
43 43
102 102
0 0
449 436
523
259 259
0 0
33 205
85 85
69 69
76 76
370 370
169 156
314 290
954 1614
1236 676
147 635
1685 1112
1039 446
27262639
2013
91 Ki 14-15M
1st 2nd
90 Ki 13-14M
1st 2nd
122 122
0 0
0 0
0 0
2014
0 0
0 0
0 0RV2A Counter Shaft 327 370 1253
1211I/S TotalAccord CVT 1220 1369
0
Expected parts to
Mfg every year,
production forecast

17. ROI Calculations
17
KNT US KNT US KNT US KNT US KNT US KNT US
¥12,500 $7,600.00 ¥0 $7,600.00 ¥12,500 $7,600.00 ¥0 $7,600.00 ¥25,000 $3,800.00 ¥0 $3,800.00
¥152,200 $2,492.00 ¥109,620 $2,492.00 ¥152,200 $2,634.00 ¥108,700 $2,270.00 ¥153,000 $2,362.00 ¥166,800 $2,362.00
¥182,640 - ¥131,544 - ¥182,640 - ¥130,440 - ¥183,600 - ¥200,160 -
$2,200.49 $1,584.87 $2,200.49 $1,571.57 $2,212.05 $2,411.57
￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$
175 180 218 220 175 200 218 220 195 200 198 200
Total Charges 101charge 98charge 81charge 80charge 101charge 88charge 81charge 80charge 91charge 88charge 89charge 88charge
RWE 185,318
8 8 8 8 8 8 8 8 8 8 8 8
$17,754.46 $27,536.00 $12,678.94 $27,536.00 $17,754.46 $28,672.00 $12,572.53 $25,760.00 $17,997.59 $22,696.00 $19,292.53 $22,696.00
Total Charges 231charge 224charge 185charge 184charge 231charge 202charge 185charge 184charge 207charge 202charge 204charge 202charge
RWE 187,880
0 0 0 0 0 0 0 0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total Charges 498charge 484charge 400charge 396charge 498charge 436charge 400charge 396charge 447charge 436charge 440charge 436charge
141,398
5 4 2 2 5 3 2 2 3 3 3 3
$11,002.41 $9,968.00 $3,169.73 $4,984.00 $11,002.41 $7,902.00 $3,143.13 $4,540.00 $6,636.14 $7,086.00 $7,234.70 $7,086.00
Total Charges 786charge 764charge 631charge 625charge 786charge 687charge 631charge 625charge 705charge 687charge 694charge 687charge
RWE 150,792
7 7 6 6 7 6 6 6 7 6 7 6
$15,403.37 $17,444.00 $9,509.20 $14,952.00 $15,403.37 $15,804.00 $9,429.40 $13,620.00 $15,484.34 $14,172.00 $16,880.96 $14,172.00
Total Charges 1329charge 1292charge 1067charge 1057charge 1329charge 1163charge 1067charge 1057charge 1192charge 1163charge 1174charge 1163charge
RWE 82,472
13 13 11 10 13 12 11 10 12 12 11 12
$28,606.27 $32,396.00 $17,433.54 $24,920.00 $28,606.27 $31,608.00 $17,287.23 $22,700.00 $26,544.58 $28,344.00 $26,527.23 $28,344.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
3 0 2 0 3 0 2 0 3 0 3 0
$6,601.45 $0.00 $3,169.73 $0.00 $6,601.45 $0.00 $3,143.13 $0.00 $6,636.14 $0.00 $7,234.70 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
3 0 3 0 3 0 3 0 3 0 3 0
$6,601.45 $0.00 $4,754.60 $0.00 $6,601.45 $0.00 $4,714.70 $0.00 $6,636.14 $0.00 $7,234.70 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
7 0 5 0 5 0 5 0 5 0 5 0
$65,306.02 $0.00
$145,005.11 $168,312.00
$33,386.60 $0.00
$36,543.04 $0.00
$0.00 $0.00
$42,188.53 $41,566.00
$82,110.65 $90,164.00
NEW JIG INSTALL COST
KNT US
$98,050.51 $154,896.00
$0.0437$0.0889
$0.1614 $0.0665
JIG COST/pc
JIG COST/pc
JIG COST/pc
JIG COST/pc
JIG COST
NEED JIG QTY
$0.0376$0.0870$0.0568$0.0608
$0.1189
$0.0744
$0.0698 $0.0977 $0.0425
$0.1367
$0.1271 $0.0916 $0.0619
$0.1240$0.0986$0.0739
$0.1294 $0.1495 $0.0573 $0.1519 $0.1404
$0.0984$0.1141$0.0488$0.1169$0.0907
$0.1555$0.1068
$0.0985
$0.1794
$0.1597 $0.1697 $0.0980
$0.1741$0.1681$0.1023
$0.2012 $0.2054
$0.1557$0.1715$0.0464$0.1598
$0.3921
$0.2166 $0.2586 $0.1235 $0.2243 $0.2166 $0.0554 $0.1226 $0.2090 $0.1882
$1.2919
$0.3220 $0.4757 $0.2292 $0.4757 $0.3220 $0.0665 $0.2274 $0.4450 $0.3262
$1.01 $1.5674 $0.7217 $1.5674 $1.0106 $1.6321 $0.7156 $1.4663
$0.0553
JIG COST/pc
JIG COST/pc
NEED JIG QTY
6AT
$0.0617$0.0515
$0.0759
2013
2nd
1st
JIG COST
JIG COST
232,416
NEED JIG QTY
2014
JIG COST/pc
JIG COST/pc
1st
6AT
2nd
6AT
Third Shaft
CarborizeCarborize Normalize Carborize Normalize
Main Shaft Secoundary Shaft
Normalize
Shipping(include item)
NEED JIG QTY
JIG COST
2012
NEED JIG QTY
Production
Number
1st
JIG COST
Jig+Tray/1set
cast die price
137,376
$0.1379
1st
219,600
219,600
NEED JIG QTY
JIG COST
NEED JIG QTY
JIG COST
219,600
$0.0493 $0.0683
6AT
6AT
6AT
6AT
$0.1946
$0.1406
$0.0799$0.0567
87,120
NEED JIG QTY
2nd
17,568
unit jig price(not include cast die cost)
$0.1032
2nd
2011
40,320
US JIG
GET COST
DOWN
$6,185
$16,270
$26,755
$29,300
($56,845)
($5,332)
$0.0953 $0.0758
$0.0616$0.0810
【Jig cost analysis】
$32,623
$37,604
$1.0245 $1.2919 $1.0982
$0.0526 $0.3486
$0.0452
KNT US KNT US KNT US KNT US KNT US KNT US
¥12,500 $7,600.00 ¥0 $7,600.00 ¥12,500 $7,600.00 ¥0 $7,600.00 ¥25,000 $3,800.00 ¥0 $3,800.00
¥152,200 $2,492.00 ¥109,620 $2,492.00 ¥152,200 $2,634.00 ¥108,700 $2,270.00 ¥153,000 $2,362.00 ¥166,800 $2,362.00
¥182,640 - ¥131,544 - ¥182,640 - ¥130,440 - ¥183,600 - ¥200,160 -
$2,200.49 $1,584.87 $2,200.49 $1,571.57 $2,212.05 $2,411.57
￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$
175 180 218 220 175 200 218 220 195 200 198 200
Total Charges 101charge 98charge 81charge 80charge 101charge 88charge 81charge 80charge 91charge 88charge 89charge 88charge
RWE 185,318
8 8 8 8 8 8 8 8 8 8 8 8
$17,754.46 $27,536.00 $12,678.94 $27,536.00 $17,754.46 $28,672.00 $12,572.53 $25,760.00 $17,997.59 $22,696.00 $19,292.53 $22,696.00
Total Charges 231charge 224charge 185charge 184charge 231charge 202charge 185charge 184charge 207charge 202charge 204charge 202charge
RWE 187,880
0 0 0 0 0 0 0 0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total Charges 498charge 484charge 400charge 396charge 498charge 436charge 400charge 396charge 447charge 436charge 440charge 436charge
141,398
5 4 2 2 5 3 2 2 3 3 3 3
$11,002.41 $9,968.00 $3,169.73 $4,984.00 $11,002.41 $7,902.00 $3,143.13 $4,540.00 $6,636.14 $7,086.00 $7,234.70 $7,086.00
Total Charges 786charge 764charge 631charge 625charge 786charge 687charge 631charge 625charge 705charge 687charge 694charge 687charge
RWE 150,792
7 7 6 6 7 6 6 6 7 6 7 6
$15,403.37 $17,444.00 $9,509.20 $14,952.00 $15,403.37 $15,804.00 $9,429.40 $13,620.00 $15,484.34 $14,172.00 $16,880.96 $14,172.00
Total Charges 1329charge 1292charge 1067charge 1057charge 1329charge 1163charge 1067charge 1057charge 1192charge 1163charge 1174charge 1163charge
RWE 82,472
13 13 11 10 13 12 11 10 12 12 11 12
$28,606.27 $32,396.00 $17,433.54 $24,920.00 $28,606.27 $31,608.00 $17,287.23 $22,700.00 $26,544.58 $28,344.00 $26,527.23 $28,344.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
3 0 2 0 3 0 2 0 3 0 3 0
$6,601.45 $0.00 $3,169.73 $0.00 $6,601.45 $0.00 $3,143.13 $0.00 $6,636.14 $0.00 $7,234.70 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
3 0 3 0 3 0 3 0 3 0 3 0
$6,601.45 $0.00 $4,754.60 $0.00 $6,601.45 $0.00 $4,714.70 $0.00 $6,636.14 $0.00 $7,234.70 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
7 0 5 0 5 0 5 0 5 0 5 0
$15,403.37 $0.00 $7,924.34 $0.00 $11,002.41 $0.00 $7,857.83 $0.00 $11,060.24 $0.00 $12,057.83 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
7 0 6 0 7 0 6 0 7 0 7 0
$15,403.37 $0.00 $9,509.20 $0.00 $15,403.37 $0.00 $9,429.40 $0.00 $15,484.34 $0.00 $16,880.96 $0.00
ACTUAL RCL M/S PRP S/S RWE M/S RWE S/S
NORMALIZE $0.1940 $0.0720 $0.0570 $0.2670
CARBURIZE $0.3470 $0.0980 $0.0800 $0.3370
2012 2nd～2015 2nd
TOTAL COST
*Repair jig of KANETA timing are every 50 charges . Repair cost of one time need $295 .
*Production number after 2014 1st are forecast
*KNT JIG of life are 200 charges . US JIG of target life are 400 charges （actual result is 212 charges for wheel spindle .
These have some cruck . But we can still use if fix .)
JIG made by KANETA are -5pcs of capacity for Normalize jig
JIG made by KANETA are -2pcs of capacity for Carborize jig
So US JIG can reduce charge times . But those cost are not include .
$65,306.02 $0.00
$82,110.65 $0.00
$145,005.11 $168,312.00
$33,386.60 $0.00
$36,543.04 $0.00
$0.00 $0.00
$42,188.53 $41,566.00
$82,110.65 $90,164.00
NEW JIG INSTALL COST
KNT US
$98,050.51 $154,896.00
$0.0338 $0.0709 $0.0519
*THIS NUMBER ARE ACTUAL JIG COST BY JUNE,2010. NOT INCLUDE REPAIR JIG COST.
*CAST JIG WILL MAKE JIG COST DOWN.
$0.0392 $0.0478 $0.0771
$0.0437$0.0889
$0.1614 $0.0665
JIG COST/pc
JIG COST/pc
JIG COST/pc
JIG COST/pc
JIG COST
NEED JIG QTY
$0.0376$0.0870$0.0568$0.0608
$0.1189
$0.0535
$0.0744
$0.0464 $0.0520 $0.1309
$0.0698 $0.0977 $0.0425
$0.1367
$0.1271 $0.0916 $0.0619
$0.1240$0.0986$0.0739
$0.1294 $0.1495 $0.0573 $0.1519 $0.1404
$0.0984$0.1141$0.0488$0.1169$0.0907
$0.1555$0.1068
$0.0985
$0.1794
$0.1597 $0.1697 $0.0980
$0.1741$0.1681$0.1023
$0.2012 $0.2054
$0.1557$0.1715$0.0464$0.1598
$0.3921
$0.2166 $0.2586 $0.1235 $0.2243 $0.2166 $0.0554 $0.1226 $0.2090 $0.1882
$1.2919
$0.3220 $0.4757 $0.2292 $0.4757 $0.3220 $0.0665 $0.2274 $0.4450 $0.3262
$1.01 $1.5674 $0.7217 $1.5674 $1.0106 $1.6321 $0.7156 $1.4663
$0.0553
JIG COST/pc
JIG COST/pc
2015
2nd
NEED JIG QTY
6AT
$0.0617$0.0515
$0.0759
JIG COST
2013
2nd
1st
JIG COST
JIG COST
232,416
NEED JIG QTY
2014
JIG COST/pc
JIG COST/pc
NEED JIG QTY
1st
6AT
2nd
6AT
Third Shaft
CarborizeCarborize Normalize Carborize Normalize
Main Shaft Secoundary Shaft
Normalize
Renewal of jig to reaching life(200charges)
Shipping(include item)
NEED JIG QTY
JIG COST
2012
NEED JIG QTY
Production
Number
1st
JIG COST
Jig+Tray/1set
cast die price
137,376
$0.0627JIG COST/pc
6AT
JIG COST
$0.1379
$0.1321
1st
Red mark are Jig cost higer
219,600
219,600
219,600
NEED JIG QTY
JIG COST
NEED JIG QTY
JIG COST
219,600
$0.0493 $0.0683
6AT
6AT
6AT
6AT
$0.1946
$0.1406
$0.0799$0.0567
87,120
NEED JIG QTY
2nd
17,568
unit jig price(not include cast die cost)
$0.1032
2nd
2011
40,320
US JIG
GET COST
DOWN
$6,185
$16,270
$26,755
$29,300
($56,845)
($5,332)
$0.0953 $0.0758
$0.0616$0.0810
$135,662
【Jig cost analysis】
$32,623
$37,604
$49,102
$1.0245 $1.2919 $1.0982
$0.0526 $0.3486
$0.0452
If we use US jig for every parts,
we will get this number cost down.
A complex ROI calculation
represents changing part types
from old model to new model

18. Idea Annual Impact ($) Idea Item Annual Impact ($)
Reduce gas and electric usage HT Process
Change to SCR type contactors
Reduce Cycle time T/S Lathes 3 4000.00 T/S Cycle time 20000.00
Reduce Cycle time T/S Oil Hole 3000.00 T/S Cycle time 16000.00
Replace Tool checkers with BK micro 0.00 Tool checker 40000.00
Reduce power costs 0.00 Energy
Reduce power costs 0.00 Energy
Rust issue at HPPG
Internal tool grinding (90% Complete) 21000.00 Tool Grinding Energy 63000.00
Replace plant lighting with T-5 Plant Lighting Energy 30000.00
Reduce tooling cost Increase tool life
Ttl. Potential $28,000.00 $169,000.00
Ttl. Sales $/yr $42,000,000.00 $40,000,000.00
0.1% 0.4%
7
Investment
(Tooling & Capital)
Ttl. Potential
Ttl. Sales $/yr
6
Logistics
Packaging
Transportation
3
MachineProc.
4
Assembly
Area
88KI (4/11 ~ 3/12) 89Ki Activity (4/12 ~ 3/13)
Supplier planned cost
improvement action items
18
Supplier Name:Bucyrus Precision Tech, Inc. Originator: Tad Shealy
Part Name: M/S, S/S, T/S Date: 5/13/2011
Item No. Idea Annual Impact ($) Idea Item
Annual Impact
($)
Idea Item
Annual Impact
($)
Localize M/S & S/S Coil Reduce import costs Localize Coil
Reduce gas and electric usage HT Process
Change to SCR type contactors
Reduce Cycle time T/S Lathes 3 4000.00 T/S Cycle time 20000.00 T/S Cycle time 70000.00
Reduce Cycle time T/S Oil Hole 3000.00 T/S Cycle time 16000.00 T/S Cycle time 50000.00
Replace Tool checkers with BK micro 0.00 Tool checker 40000.00 Tool Checker 40000.00
Reduce power costs - Solar 0.00 Solar Power Solar Power
Reduce power costs - Wind 0.00 Wind Power Wind Power
JSPS supply small parts in bulk
instead of daily lot supply
Rust issue at HPPG
Internal tool grinding (90% Complete) 21000.00 Tool Grinding Energy 63000.00 Tool Grinding Energy 63000.00
Replace plant lighting with T-5 Plant Lighting Energy 30000.00 Plant lighting Energy 30000.00
Reduce tooling cost Increase tool life
Ttl. Potential $28,000.00 Ttl. Potential $169,000.00 Ttl. Potential $253,000.00
Ttl. Sales $/yr $42,000,000.00 Ttl. Sales $/yr $40,000,000.00 Ttl. Sales $/yr $45,000,000.00
0.1% 0.4% 0.6%
S.G.A.P.
Investment
(Tooling & Capital)
Inspection & Testing
Purchased
Components
Logistics
Packaging
Transportation
90Ki Activity (4/13 ~ 3/14)
Raw Material
MachineProc.ForgingAssembly
Summary Page 11th Mid-Term Cost Improvement Plan
Area Item
88KI (4/11 ~ 3/12) 89Ki Activity (4/12 ~ 3/13)
Scheduled action items and $$ amount of impact
Identified
opportunity
gaps
Identified Cost Reduction Opportunities – planning

19. 19

20. Data Integration =
20
2010 6-Year forecast 2016
BPT Long Term Plan
ATM Summary Americas Mid-Term Supply Plan 10-1-071410
Part Daily Averages
KNT KD L4 L4 CRV
BPT L4
RDX 2WD
RDX 4WD
BPT 4Axis TL 4WD
TL 2WD
ODY
MDX
RIDGELINE
Accord V6
Accord V6 ( X-O ) 4WD
Accord V6 ( X-O ) 2WD
Acura V6 ( X-O )
Pilot 4WD
Pilot 2WD
BPT 6AT
BPT M/S & S/S
Total
BPT
Counter
Shaft
Input Shaft
308 162
1432 1600 1400
2919 2794
110 87 87 85 85
T/S Total 144 280 605 954 1614
0
CR-V 4WD
M/S & S/S Total 5AT & 6AT
154 154
1563 1853
0 0
0 000
6AT
R97 C/S
RWE C/S
0
0
209
0 0
0 0 0
RWE Counter Shaft 0
R97 Counter Shaft
6AT Total
ODY 6AT 6AT
B
4Axis BPT total
1292 911
2174
3085 1569
3365
B
B
B
151
326
290 297 267
944
000
973
617 631
122122 120124
1263
29
50
117108
71
277
422
65 63
74
234 271
0 2919 2794
0
0 1327 1242
218 208
6778
176
1450 1508
313
1545
1195 1223
144
1519
3404
300
167
1592
2680
3260
162
85 Ki 08-09M
1st 2nd
124 120
86 Ki 09-10M
1st 2nd 1st
87Ki 10-11M
1st 2nd 2nd
318
0
1241 1088 1741
310
25
465
0
88
0 0
84
2011
0 0 1656 1553
1st
304
89
476
1540
2012
568 727
1289
0
821
88 Ki 11-12M
2nd
Total Counter Shaft
M/S & S/S Total 5AT
DAYS
B
B
B
L4 CR-V 4WD (BPT Localize)
2680
2008
0
2009 2010
89 Ki 12-13M
289281
0
686
122 122
646
0
0
0
1154 0
0 0
323
36
410
102 102
44 44
1545
24
342
50 98
0
89
281
0
108
13
87
456483
33
0
00
0
327 327
134 132
467
280 605
73 73
171 155
86
1159
B
B
B
B
( L4 total )
L4 Element
L4 Accord
L4 CR-V 2WD
L4 Acc CT 2WD
B
B
122 122
131
101 89
86
0 0
364 351
774 746
0 0
43 43
102 102
0 0
449 436
523
259 259
0 0
33 205
85 85
69 69
76 76
370 370
169 156
314 290
954 1614
1236 676
147 635
1685 1112
1039 446
27262639
2013
91 Ki 14-15M
1st 2nd
90 Ki 13-14M
1st 2nd
122 122
0 0
0 0
0 0
2014
0 0
0 0
0 0RV2A Counter Shaft 327 370 1253
1211I/S TotalAccord CVT 1220 1369
0
KNT US KNT US KNT US KNT US KNT US KNT US
¥12,500 $7,600.00 ¥0 $7,600.00 ¥12,500 $7,600.00 ¥0 $7,600.00 ¥25,000 $3,800.00 ¥0 $3,800.00
¥152,200 $2,492.00 ¥109,620 $2,492.00 ¥152,200 $2,634.00 ¥108,700 $2,270.00 ¥153,000 $2,362.00 ¥166,800 $2,362.00
¥182,640 - ¥131,544 - ¥182,640 - ¥130,440 - ¥183,600 - ¥200,160 -
$2,200.49 $1,584.87 $2,200.49 $1,571.57 $2,212.05 $2,411.57
￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$
175 180 218 220 175 200 218 220 195 200 198 200
Total Charges 101charge 98charge 81charge 80charge 101charge 88charge 81charge 80charge 91charge 88charge 89charge 88charge
RWE 185,318
8 8 8 8 8 8 8 8 8 8 8 8
$17,754.46 $27,536.00 $12,678.94 $27,536.00 $17,754.46 $28,672.00 $12,572.53 $25,760.00 $17,997.59 $22,696.00 $19,292.53 $22,696.00
Total Charges 231charge 224charge 185charge 184charge 231charge 202charge 185charge 184charge 207charge 202charge 204charge 202charge
RWE 187,880
0 0 0 0 0 0 0 0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total Charges 498charge 484charge 400charge 396charge 498charge 436charge 400charge 396charge 447charge 436charge 440charge 436charge
141,398
5 4 2 2 5 3 2 2 3 3 3 3
$11,002.41 $9,968.00 $3,169.73 $4,984.00 $11,002.41 $7,902.00 $3,143.13 $4,540.00 $6,636.14 $7,086.00 $7,234.70 $7,086.00
Total Charges 786charge 764charge 631charge 625charge 786charge 687charge 631charge 625charge 705charge 687charge 694charge 687charge
RWE 150,792
7 7 6 6 7 6 6 6 7 6 7 6
$15,403.37 $17,444.00 $9,509.20 $14,952.00 $15,403.37 $15,804.00 $9,429.40 $13,620.00 $15,484.34 $14,172.00 $16,880.96 $14,172.00
Total Charges 1329charge 1292charge 1067charge 1057charge 1329charge 1163charge 1067charge 1057charge 1192charge 1163charge 1174charge 1163charge
RWE 82,472
13 13 11 10 13 12 11 10 12 12 11 12
$28,606.27 $32,396.00 $17,433.54 $24,920.00 $28,606.27 $31,608.00 $17,287.23 $22,700.00 $26,544.58 $28,344.00 $26,527.23 $28,344.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
3 0 2 0 3 0 2 0 3 0 3 0
$6,601.45 $0.00 $3,169.73 $0.00 $6,601.45 $0.00 $3,143.13 $0.00 $6,636.14 $0.00 $7,234.70 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
3 0 3 0 3 0 3 0 3 0 3 0
$6,601.45 $0.00 $4,754.60 $0.00 $6,601.45 $0.00 $4,714.70 $0.00 $6,636.14 $0.00 $7,234.70 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
7 0 5 0 5 0 5 0 5 0 5 0
$15,403.37 $0.00 $7,924.34 $0.00 $11,002.41 $0.00 $7,857.83 $0.00 $11,060.24 $0.00 $12,057.83 $0.00
Total Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge
RWE 0
7 0 6 0 7 0 6 0 7 0 7 0
$15,403.37 $0.00 $9,509.20 $0.00 $15,403.37 $0.00 $9,429.40 $0.00 $15,484.34 $0.00 $16,880.96 $0.00
ACTUAL RCL M/S PRP S/S RWE M/S RWE S/S
NORMALIZE $0.1940 $0.0720 $0.0570 $0.2670
CARBURIZE $0.3470 $0.0980 $0.0800 $0.3370
2012 2nd～2015 2nd
TOTAL COST
*Repair jig of KANETA timing are every 50 charges . Repair cost of one time need $295 .
*Production number after 2014 1st are forecast
*KNT JIG of life are 200 charges . US JIG of target life are 400 charges （actual result is 212 charges for wheel spindle .
These have some cruck . But we can still use if fix .)
JIG made by KANETA are -5pcs of capacity for Normalize jig
JIG made by KANETA are -2pcs of capacity for Carborize jig
So US JIG can reduce charge times . But those cost are not include .
$65,306.02 $0.00
$82,110.65 $0.00
$145,005.11 $168,312.00
$33,386.60 $0.00
$36,543.04 $0.00
$0.00 $0.00
$42,188.53 $41,566.00
$82,110.65 $90,164.00
NEW JIG INSTALL COST
KNT US
$98,050.51 $154,896.00
$0.0338 $0.0709 $0.0519
*THIS NUMBER ARE ACTUAL JIG COST BY JUNE,2010. NOT INCLUDE REPAIR JIG COST.
*CAST JIG WILL MAKE JIG COST DOWN.
$0.0392 $0.0478 $0.0771
$0.0437$0.0889
$0.1614 $0.0665
JIG COST/pc
JIG COST/pc
JIG COST/pc
JIG COST/pc
JIG COST
NEED JIG QTY
$0.0376$0.0870$0.0568$0.0608
$0.1189
$0.0535
$0.0744
$0.0464 $0.0520 $0.1309
$0.0698 $0.0977 $0.0425
$0.1367
$0.1271 $0.0916 $0.0619
$0.1240$0.0986$0.0739
$0.1294 $0.1495 $0.0573 $0.1519 $0.1404
$0.0984$0.1141$0.0488$0.1169$0.0907
$0.1555$0.1068
$0.0985
$0.1794
$0.1597 $0.1697 $0.0980
$0.1741$0.1681$0.1023
$0.2012 $0.2054
$0.1557$0.1715$0.0464$0.1598
$0.3921
$0.2166 $0.2586 $0.1235 $0.2243 $0.2166 $0.0554 $0.1226 $0.2090 $0.1882
$1.2919
$0.3220 $0.4757 $0.2292 $0.4757 $0.3220 $0.0665 $0.2274 $0.4450 $0.3262
$1.01 $1.5674 $0.7217 $1.5674 $1.0106 $1.6321 $0.7156 $1.4663
$0.0553
JIG COST/pc
JIG COST/pc
2015
2nd
NEED JIG QTY
6AT
$0.0617$0.0515
$0.0759
JIG COST
2013
2nd
1st
JIG COST
JIG COST
232,416
NEED JIG QTY
2014
JIG COST/pc
JIG COST/pc
NEED JIG QTY
1st
6AT
2nd
6AT
Third Shaft
CarborizeCarborize Normalize Carborize Normalize
Main Shaft Secoundary Shaft
Normalize
Renewal of jig to reaching life(200charges)
Shipping(include item)
NEED JIG QTY
JIG COST
2012
NEED JIG QTY
Production
Number
1st
JIG COST
Jig+Tray/1set
cast die price
137,376
$0.0627JIG COST/pc
6AT
JIG COST
$0.1379
$0.1321
1st
Red mark are Jig cost higer
219,600
219,600
219,600
NEED JIG QTY
JIG COST
NEED JIG QTY
JIG COST
219,600
$0.0493 $0.0683
6AT
6AT
6AT
6AT
$0.1946
$0.1406
$0.0799$0.0567
87,120
NEED JIG QTY
2nd
17,568
unit jig price(not include cast die cost)
$0.1032
2nd
2011
40,320
US JIG
GET COST
DOWN
$6,185
$16,270
$26,755
$29,300
($56,845)
($5,332)
$0.0953 $0.0758
$0.0616$0.0810
$135,662
【Jig cost analysis】
$32,623
$37,604
$49,102
$1.0245 $1.2919 $1.0982
$0.0526 $0.3486
$0.0452
If we use US jig for every parts,
we will get this number cost down.
Supplier Name:Bucyrus Precision Tech, Inc. Originator: Tad Shealy
Part Name: M/S, S/S, T/S Date: 5/13/2011
Item No. Idea Annual Impact ($) Idea Item
Annual Impact
($)
Idea Item
Annual Impact
($)
Localize M/S & S/S Coil Reduce import costs Localize Coil
Reduce gas and electric usage HT Process
Change to SCR type contactors
Reduce Cycle time T/S Lathes 3 4000.00 T/S Cycle time 20000.00 T/S Cycle time 70000.00
Reduce Cycle time T/S Oil Hole 3000.00 T/S Cycle time 16000.00 T/S Cycle time 50000.00
Replace Tool checkers with BK micro 0.00 Tool checker 40000.00 Tool Checker 40000.00
Reduce power costs - Solar 0.00 Solar Power Solar Power
Reduce power costs - Wind 0.00 Wind Power Wind Power
JSPS supply small parts in bulk
instead of daily lot supply
Rust issue at HPPG
Internal tool grinding (90% Complete) 21000.00 Tool Grinding Energy 63000.00 Tool Grinding Energy 63000.00
Replace plant lighting with T-5 Plant Lighting Energy 30000.00 Plant lighting Energy 30000.00
Reduce tooling cost Increase tool life
Ttl. Potential $28,000.00 Ttl. Potential $169,000.00 Ttl. Potential $253,000.00
Ttl. Sales $/yr $42,000,000.00 Ttl. Sales $/yr $40,000,000.00 Ttl. Sales $/yr $45,000,000.00
0.1% 0.4% 0.6%
S.G.A.P.
Investment
(Tooling & Capital)
Inspection & Testing
Purchased
Components
Logistics
Packaging
Transportation
90Ki Activity (4/13 ~ 3/14)
Raw Material
MachineProc.ForgingAssembly
Summary Page 11th Mid-Term Cost Improvement Plan
Area Item
88KI (4/11 ~ 3/12) 89Ki Activity (4/12 ~ 3/13)
Piece price reduction
from innovation
incorporation

21. Forecast data
ROI presentation
Identified
opportunities
Project planning
• The products and services provided will
help you achieve your cost improvement
objectives.
• Example:
• Using the research methodologies, we can
provide support in the following areas:
• Identified opportunities
• ROI presentation
• Project planning
21

22. • Contact Information:
• Jason Gallion
• Phone +1 (614) 286-5142
• Email: Info@Epicpwr.com
Thank You!
22