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GPDSLeanProductCreationAugust7,2009Process&LocalizationTemplateOverviewAgendaWhatisGPDS?WhatarethekeyeventsinGPDS?WhatistheGPDSprocessforlocalparts?WhereistheremoreGPDSinformation?1.WhatisGPDS?KeyConceptsGrasptheSituationPlanCheckDoActContinuousImprovementCORRECTIONWAITINGINVENTORYMOTIONOVERPRODUCTIONSEVENMAJORWASTESWasteEliminationOVERProcessingCONVEYANCEtime#ofdetectioneventsinFMEAFPDSGPDSLatitudetoincorporatecountermeasuresFrontLoadingQualityProcess:KanoModelforCustomerSatisfactionCustomerSatisfactionDegreeoftechnicalachievementxYExcitementQuality(Surprise&Delight)3PerformanceQuality2BasicQuality12.WhatarekeyeventsinGPDS?<PS>ProgramStartTargets&SourcingFC5SurfaceHardFreezeM1DataJudgmentFinalDataJudgmentProductConcept&PackageProgramStartMassProduction2MassProduction1ProgramStrategicConfirmationProgramTargetCompatibilityCheckpointProgramApprovalLaunchReadinessFinalEngineeringConfirmationProgramTargetConfirmationMainObjectives:StarttheProgramTeamBillofMaterial(BOM)andTargets&SourcingprocessesEstablisharobustprimeProgramstrategyFosterahighlevelofpart/architecturereuseandcommonalityKeyDecisions:KeyPlatformandPowertrainsystemandElectricalarchitectureProgramMissionInitialMarketingstrategyAssemblyPlantAlternativesFC3ConceptDecisionFordConfidential<PSC>ProgramStrategicConfirmationTargets&SourcingFC5SurfaceHardFreezeM1DataJudgmentFinalDataJudgmentProductConcept&PackageProgramStartMassProduction2MassProduction1ProgramStrategicConfirmationProgramTargetCompatibilityCheckpointProgramApprovalLaunchReadinessFinalEngineeringConfirmationProgramTargetConfirmationMainObjectives:Programstrategictargets/guidelinessetCompatibilityofAffordableBusinessStructure(ABS)withMarketing,Finance&QualityFunctionaltargets,hardwareselectionandtimingconfirmedWorkplanandresourceavailabilitytoachievesuccessfuldeliveryto<PTCC>areapproved

KeyDecisions:KeyBody,ChassisandElectricalsystemsFC3ConceptDecisionFordConfidential<PTCC>ProgramTargetCompatibilityCheckpointTargets&SourcingFC5SurfaceHardFreezeM1DataJudgmentFinalDataJudgmentProductConcept&PackageProgramStartMassProduction2MassProduction1ProgramStrategicConfirmationProgramTargetCompatibilityCheckpointProgramApprovalLaunchReadinessFinalEngineeringConfirmationProgramTargetConfirmationMainObjectives:AllAttributetargetsincludingQuality,Cost,Weight&FunctionalignedandbalancedCompletesystemselectioncompletedtoaligntargetsandconfirmBillofProcess(BOP)SupplierAgreementLetterson-trackperKeyCommodityPlanSupplierOn-BoarddatesEnsurecompletionofProductConcept,Package,Targets&SourcingKeyDecisions:AllremainingkeycommoditysystemsFC3ConceptDecisionFordConfidential<PA>ProgramApprovalTargets&SourcingProductConcept&PackageProgramStartMassProduction2MassProduction1ProgramStrategicConfirmationProgramTargetCompatibilityCheckpointProgramApprovalLaunchReadinessFinalEngineeringConfirmationProgramTargetConfirmationMainObjectives:ApproveProgramQuality,Cost,WeightandFunctionobjectivesApproveFundingApproveMarketEquationSupportcompletionFinalDataJudgment&startofmassproductionpreparationactivitiesKeyDecisions:AffordableBusinessStructureandMarketEquationProductQuality,Cost,WeightandFunctionalperformanceCommercialProgramAgreements(CPAs)arecompleteFC3ConceptDecisionFC5SurfaceHardFreezeM1DataJudgmentFinalDataJudgmentFordConfidential<FEC>FinalEngineeringConfirmationTargets&SourcingFinalDataJudgmentProductConcept&PackageProgramStartMassProduction2MassProduction1ProgramStrategicConfirmationProgramTargetCompatibilityCheckpointProgramApprovalLaunchReadinessFinalEngineeringConfirmationProgramTargetConfirmationMainObjectives:Completeandsign-offalldesignvalidationtorequirements(exceptlimitedtunables).KeyDecisions:ProceedtolaunchbasedoncompletionofEngineeringRiskAssessmentFC3ConceptDecisionFC5SurfaceHardFreezeM1DataJudgment<LR>LaunchReadinessTargets&SourcingFinalDataJudgmentVehicleBasicDesignPowertrain“Unit”DevelopmentProgramStartMassProduction2MassProduction1ProgramStrategicConfirmationProgramTargetCompatibilityCheckpointProgramApprovalLaunchReadinessFinalEngineeringConfirmationProgramTargetConfirmationMainObjectives:Manufacturingtoolsandequipmentarereadyforhome-lineproductionofvehiclesCrossfunctionalgroups(engineering,suppliers,materialcontrol,confirmreadinesstoproceedtoToolTryoutbuildKeyDecisions:FinaldecisiontoproceedtoToolTryout(TT)BuildFC3ConceptDecisionFC5SurfaceHardFreezeM1DataJudgmentAPQP&SupplierEngagementSourcingTeamEvaluation#1TeamEvaluation#2TeamEvaluation#3TeamEvaluation#4FailureModeAvoidanceMfg./CapacityPlanningValidationPlanningTesting&ValidationPrototypeBuildsToolingTesting&ValidationToolingVerificationLaunchQuality/CapacityVerificationLaunchQuality/CapacityVerificationPlanActual%Complete3.WhatistheGPDSprocessforlocalparts?LocalizationProcessIntroductionWehadnotemplateorstandardizedapproachtodeveloping&launchinghighlocalcontentnewvehicleprograms.Eachprogramwas“inventing”howbesttoworkwithJointVenturepartnersTherewasnodocumentation:ExplainexpectationstoJointVenturepartnersCapturelearningsDrivecontinuousimprovementLocalizationTemplate“Is”Whatitis-Processtemplate(s)usedtoguidethedevelopmentandlaunchofhighlocalcontentnewvehicleprogramatnon-mainstreamproductionfacilities.TheinitialtemplateisforproductionfacilitiesthatarenotfullywithintheFordEnterprise.Aprocesstoassurequality,cost,andspeedisdeliveredtoglobalemergingmarketswithinGPDSlogic.Forexample,todeterminethewho,what,how,andwhenforlocalpartverification.AprocessproposalconsistentwithGPDStargets&sourcingprocessandtheGlobalConcurrentlauncheffortforaMajorAllNewVehicle.TheinitialtemplateproposalisforChinaJointVentures.Subsequently,templatesforotherlocalizationsituationswillbedeveloped(e.g.KD,minormarkets,etc.).LocalizationTemplate“IsNot”Whatitisnot-AprocessthatwouldencouragereducedBOPorBODcommonalitybymakingmorevisibletheopportunitytohaveuniqueDV.

AtimingoverlaythataddsastaggertotheVPPbasedonregionallyuniquedesigns.Timingforallsizeproductandmanufacturingprograms.Allthedetailedmethodsandtoolsrequiredtoexecutetheprocess.Thesemethodsandtoolswillhavetobecreatedbyresponsiblefunctions.Totallyfinished.Weexpecttocollectcomments&concernswiththetemplateduringthisvisit.ApprovalisscheduledforOctober2009insupportthenextreleaseofGPDS.KeyAssumptionsLEAisresponsibleforEngineeringSign-off.TheFordRegionalPDOfficeisresponsibletoensure:LocalsuppliersunderstandLEAdesigndirectionAllissuesareidentifiedandresolvedwiththeLEALocalJVhasprimarybuyingandmanufacturingauthority.Timingwillvaryforprogramswithsmallerscalability.Shippingtime(typically6wks)needstobeassessedbasedonNationallogistics.DesignTransferAgreementsprotectingIntellectualPropertyrightsforFordandforoursuppliersconsistentwithCorporateguidelinesareinplace.KeyChallengesManaginglogisticstomaximizeconcurrentdevelopmentandlaunch.LogisticsforlocalcontentDVtoenabletheLEAtoSign-OffthevehicletobeproducedbytheJV.Partsand/orvehiclesTestand/orbuildcountDiepracticesandlogisticsvaryregionallyandgeographically.SourcingPCF(PartCheckingFixture)disciplinesandBuy-offHomeLineTryoutIn-ProcessIssuesPresenttemplatestatusleadstoJVlaunch5monthsafterleadregion(comparabletoB515).VOMEandSBUareengagedinimprovingconcurrency.Valueofbuilding&testingVPprototypeswithlocalcontentattheJVmayvaryfromprogram.Bestpracticeneedsfurtherevaluation.PresentassumptionfollowsEcoSportprogramplanStandardglobalPCFandtoolbuy-offprocessesareneeded.GlobalCoreprocessproposalforPCFsreflectedGlobalSBUCoretobeengagedtoreducedurationsLocalizationTemplateWalk-ThruPre-<PS>StrategicAlignmentPrelimEng.ServiceAgreement(ESA)ifrequiredMarketingStrategy/Positioning/ConsumerResearchfortheproposedproductProduct,ManufacturingandSourcingStrategicFrameworkPrelimTechnologyLicensingContract(TLC)PSMRTheSeniorLeadershipoftheLEA,Region&theJVneedtofindalignmentonthestrategicintentoftheprogramsothattheglobalteamefficientlywork:BusinessCustomerProductArchitectureMarketPositioningManufacturingSourcing/SupplyBaseHowPre-<PS>works:Identifythekeystrategicquestions,brainstormthepossiblesolutionsfor<MR>.AfterthePlanningteamstudiesthepotentialsolutions,selectthebestapproachtosuccessandalignfor<PS>.44monthsbeforeLEAJob#1TargetSettingCheckpointsQualityHistoryandHighHurtsBenchmarkingBaselineTop-DownTargetsSuggestedSuppliersforKeyCommoditiesManufacturingPlanforPSCStartSALs(SupplierAgreementLetters)InitiateSupplierBidProcessPre-<PS>StrategicAlignmentPSPSC~6monthsforMajorProgramTheEngineering,Finance,Purchasing&Manufacturingteamsstartsat<PS>torecommendprogramassumptions:SystemCostTargetsManufacturingIssues&QualityIssuestobeaddressedSuggestedlocalsuppliers&segmentationforeachKeyCommodityperthePlan.BenchmarkingforSystemAlternatives(AttachmentC)FinalPreparationfor<PSC>44monthsbeforeLEAJob#1GlobalSourcingCommoditySegmentationSourcingSegmentDesignSourceProductionSourceRemarksB1Global(Supplier)GlobalCanbeRegionalAffiliatesB2GlobalRegionalLEAsupplierDesignB3RegionalRegionalIncreasesDesignVerificationWorkloadDGlobal(Ford)GlobalorRegionalTendstobeBuild-to-PrintVisionismaximum#of“D”or“B1”categorycommoditiesTLCFrameworkandPrincipalsDev.AndNegotiationConceptClinicMarketEquationProductPlanningActivity(PrimeAlternative)ABSCostandInvestmentEstimateESAFrameworkandPrincipalsDev.AndNegotiationProgramPlanning<PS>-<PSC>PSPSC~7monthsforMajorProgramBasedonrecommendedassumptions,theLEAChiefProgramEngineerandtheBusiness,Planning&MarketingTeamsdecidetheoptimumglobalprogramdirection:SystemPrimeAlternativeProductPositioning,ProductConceptclinic&MarketEquationConfirmProgramCost&ProfitabilityTargetsConsolidatedProgramAssumptionsBusinessAgreements(asrequired)CPEAttachmentCWorkshops44monthsbeforeLEAJob#1TargetSettingCheckpointManufacturingRequirementsCPETargetSign-offWorkshopsSourcingAgreementLettersPackagesDue(cont.)SupplierBidProcess(cont.)TLCDetailedDev.SourcingAgreementLettersSigningSecureCompatibility<PSC>-<PTCC>PSCPTCCBasedonoptimumglobalprogramdirection,andKeyCommodityPlan&SeniorManagementsupportofthePrimeAlternativeat<PSC>startprogramimplementation:SupplierBid,AgreementLetterprocesspertheKeyCommodityPlanGatherManufacturingBillofProcessfacility&designrequirementsSign-offcompatibleSystem&SupplierTargetsDevelopdetailedTLC~3monthsforMajorProgram37monthsbeforeLEAJob#1B1,B2&DSuppliersworkwithdesignsourceB3PartCADUpdateUPB3FeasibilityCommitment&ToolingPlanUNB3PartCADandToolingPlanUNB3PartFMEAandDVPlanUNB3CAEandVirtualVerificationPTCCPTC~7monthsforMajorProgramStructure&ThemeDesign

<PTCC>-<PTC>DevelopdetailedUnderbody(UN)designsandsecureThemefeasibilitywithsuppliers:UNB3SupplierssupportUNdesign,completevirtualverificationforallrequirementsandgainLEAapproval.AllB3SuppliersprovideCADtoLEAasrequired.UPB3Supplierscommittofeasibility&gainLEAapprovalfortoolingplan.OtherSuppliersworkwithdesignsourcetoensurefeasibilityandcostefficiency.34monthsbeforeLEAJob#1FeatureContentSurveyThemeClinicMarketEquationABSCost&Invest.EstimateTLCNegotiationandAgreementESADetailedDev.CoreProgramBusiness

<PTCC>-<PTC>PTCCPTC~7monthsforMajorProgramUtilizelatestengineeringdetailtoconfirmprogramdirectionandtosecurecriticalagreements:CompletesourcingallsupplierswithengineeringresponsibilityUNCommercialProgramAgreementsignedusingverifiedUNdesigndataperschedule.Themeclinic&FeatureMarketsurveytoensureoptimumprogramdirection&supportMarketEquationupdate.UpdateInvestment,Cost&ProgramAgreementsasrequired.LongLeadfundingapproval.UNCommercialProgramAgreements(CPA)SignedSupplierBidProcess(cont.)SourcingAgreementLettersSigning(cont.)SourcingAgreementLettersPackagesDue(cont.)27monthsbeforeLEAJob#1DesignCompletion

<PTC>-<PA>PTCPACompletedesignswithLEAfor<PA>&FinalDataJudgment:UNB3supplierssupplypartsandanalysisforM1prototypeasagreedwithLEA.UPB3SupplierssupportUPdesign,completevirtualverificationforallrequirementsandgainLEAapproval.OtherSuppliersworkwithdesignsourcetoensurefeasibilityandcostefficiency.

Complete1stSupplierEngagementVisit.~8monthsforMajorProgramUNB3SupplierssupportM1testingasagreedwithLEAB3PartCADUpdate(cont.)B1,B2&DSuppliersworkwithDesignSource(cont.)UpdateCADtoreflectAA1SurfaceB3UPPartFMEAandDVPlanUpdateCADtoreflectFC5SurfaceB3UPCAEandVirtualVerification27monthsbeforeLEAJob#11stSupplierEngagementVisitCostCheckpointABSCostandInvestmentEstimateMarketAcceptanceClinicMarketEquationTLCSubmissionforApprovalESANegotiationandAgreementPTCPA~8monthsforMajorProgramSetQuality,Cost,Weight&FunctionObjectivesandsecurefundingapproval:SignSupplierCommercialAgreementsbasedonhighconfidencedesignmaturityConductMarketAcceptanceClinicandfinalizeMarketEquation.UpdateInvestmentandVariableCostandFinalizeAffordableBusinessStructureCompleteFinalProgramAgreementsasrequired.

SetObjectives<PTC>-<PA>AllCommercialProgramAgreements(CPA)Signed27monthsbeforeLEAJob#1ProductionReleasePreparation<PA>-FDJPAFDJ~2monthsMajorProgramSupplierBidProcessforMinorParts(perProgramSourcingPlan)B3PartCADUpdateasrequiredanddevelopVPcontrolplansAllB3PartRequirementsandFeasibilityareconfirmed(cont.)B1,B2,DSuppliersworkwithDesignSource(cont.)Completeengineeringdatarequiredforfinaldesignvalidation&productiontooling:B3Supplierscompleteremainingdetail,developVPcontrolplanandgainLEAapproval.B1,B2,DSuppliersworkwithDesignSourcetofabricatetoolsandfinalizeDVandControlPlans.Bidshortleadparts&tools.

Kick-offSupplierToolstomeetVPMRD.ProductionReleaseFDJ+1month19.5monthsbeforeLEAJob#1SupplierBidforTools&DiesSheetMetalToolPlanningandDesignfromLEADesignSource(includingsheetmetal)Kick-offTooling(LongLeadonly)Kick-offToolingFordConfidentialCom-ponentDVCompleteShippingTimeforBodyinWhitefromLEAFDJFECPhysicalDesignValidationFDJ-<FEC>BuildLocalVPLocalEmissionsDurabilityHomologation&CertTestingVPVerificationTestingDVtestingiscompleted,allengineeringissuesandproposedcounter-measuresareapproved.CompleteVPdesignandToolParts.SuppliersCompleteComponentDVTestandGainLEAApprovalandbeginPV.ShipBIWfromLEA;assembleVPlocally.

LocalVPusedforChinadurability,homologation&anyDVagreedwithLEA.1stPasstestingcompletefor<PEC>.Complete2nd&3rdSupplierEngagementVisits.ProduceInitialVPMRDQuantities&documentationFinaldesign&VPControlPlan(cont.)ToolFirstSamples(cont.)~13.5monthsforMajorProgram17.5monthsbeforeLEAJob#12ndSupplierEngagementVisitPECRe-DV