MH BU Quality Review :

January 2019
Content
2

1.BU Quality update

2.CQA update

3.Factory Quality Update : ETD 1

4.Factory Quality Update :ETD 2

5.Factory Quality Update :CV

6.Factory Quality Update :KTD

7.Factory Quality Update :WMD

 3

BU Quality Update-MH
1. Highlights/Lowlights
2. Warranty MH Tires Global
3. Quality Goals
4. Action status
 1. Highlights/Lowlights : MH
Month Highlights 4

 QIS pilot: Project is in the Hypercare stage raising 7 support tickets and 6 has no been closed. The latest version of the QIS
application launch across users. Brief leadership team about the pilot project for best use of its intention and PED in particular

 Assembly as part of PDP: We managed the initial framing of the project for assembly process & Scoping document drafted which
will then goes for team approval and include to Ops plan.

 Visual RR workshop: Reviewed all tire factory progress towards eliminating type 1 & 2 errors of our FQC employees and establish
as a regular test to perform twice a year followed by corrective actions for employees score >90% RR.

 14 CIMs reported for Last 12 months and response time recorded as 9days against target of 15 days.11 CIMs are completed, zero
CIMs reported for the month

Positive Opportunities Negative Threats

 26 R&D persons taking up DFMEA practitioner course with the  Sporadic variation observed on resilient flash curves caused
goal of make the design RFT which is a key element in our by SG variation on Tread compound with the change of T2277
APQP process to TR1110 thus post change flash monitoring required
 NDT: Testing device accurately shows where the bead is out of
position for the 23x12-12 tires in Duisburg. Opportunity to use
this device for assemblies up until the radial run out device up
and running
Note: BIQ Level II final assessments postpone to May
 2. Warranty MH Tires Global – FY2018-2019
5

Approved claim rate

82%

Claim Response
time 3 days for
January 2018

Top Cims:
AIR 775 18.00-25
Noisy tires APAC
region
RES ML issues

• Overall claim ratio = 0.11% for the month of January 2018. Actions ongoing in
• 3 months trend line indicate mainly a stable trend. the factory
• YTD value increased due to 25” ind. pneumatic tire claims
(+10% related to 12 month rolling)
 3. QUALITY GOALS : MH - January’19
6
Category # Type of Waste_Scrap Unit ETD 1 ETD 2 CV KTD CWD

Scrap I. Raw Material % of prod. cost 0.01 0.03 0.37 0.01

Scrap II. Bead & Inner heal scrap % of prod. cost 0.00 0.006 0.05 0.04

Scrap III. Green Tire scrap % of prod. cost 0.01 0.061 0.12 - N/A
Scrap Cost
Scrap IV. Flash % of prod. cost 0.99 1.56 1.38 0.31

Scrap V. Scraped tires % of prod. cost 0.11 0.19 0.55 0.14

Total scrap Sc I + II + III + IV + V % of prod. cost 1.13 1.85 2.46 0.50 0.04

FTY ( First Time Yield ) % 97 95 96.18 99 100

Repair ( Inflow ) % 3 5 3.33 1.35 0.702

Claims ( Outflow ) ppm 921 602 911 523 97

CIM response Time days 7 9 19 3 20

BIQ Level II Compliance % 81 79 68 77 85

K$ 156 90 36 37 -
Full Cost of Quality
 4. Actions : MH
Current month
February priorities Target Activities
7

Foundation for BIQ shop floor  Education for factory team

1 BIQ Camp
campaign  Share BIQ experience with sister sites
 7 Habits training for Quality team
2 Team training Give the best for our employees
 DFMEA tool for R&D team

BU Quality functioning Business  New manager on board

3 Hiring & Handover of BU Quality tasks
as usual  Handover program in place

Previous month
January priorities Target Activities

 Launch Version 160 √

1 QIS pilot project-CV Enable full data cycle –CR Line
 SAT handover to new QM

√
 Ops plan & KPIs
2 MH SLK Leadership team workshop Alignment with factories
 QIS strategy

BU Quality functioning  New manager on board

3 Hiring & Handover of BU Quality tasks √
Business as usual  Handover program in place
 8

CQA Update-QMS review

1. Monthly Highlights
2. Internal Quality Audit summary
3. Supplier Quality
4. Changes that could affect the QMS
1. Monthly Highlights
9

Monthly Highlights –January 2019

• Casted wheel supplier, Xinjida visited Loadstar to resolve the Quality issues and pending claims.

• Conducted three supplier audits , two carbon black (Philips and Himadri) supplier and one reclaim supplier (Sun Exim) in India.

• Jantsa supplier visited Loadstar to resolve recurring Quality issues in fabricated wheel.

• Achieved 95% Internal Quality Audit Plan adherence in 2018 (Target-94%)

• Successful BOTR & JLG customers visit with new business opportunities created for market growth.
2. Internal Quality Audit Summary
(rolling 12 months cumulative, Feb18- Jan19)
10
Factory ETD1 ETD2 KTD WMD Total

No of audits conducted 10 10 12 11 43

Total NCs 37 35 39 43 154

No. of NCs closed within 90 days 31 32 35 41 139

No. of NCs exceeded 90 days 6 3 4 2 15

% of NCs closed within 90 days 84% 91% 90% 95% 90%

Target – 84%
2. Internal Quality Audit Summary
(rolling 12 months cumulative, Feb18- Jan19)
Internal Audit Plan Adherence
11

100
98 98 97 97
96 95
93 94 94 94
92 91 91 92 92 92
90 90 90
87 88

83
80
%

70

60

50
18-Feb 18-Mar 18-Apr 18-May 18-Jun 18-Jul 18-Aug 18-Sep 18-Oct 18-Nov 18-Dec 19-Jan
Achivement Target
2. Internal Quality Audit Summary
(rolling 12 months cumulative, Feb18- Jan19)
ETD1 ETD2
100 100 12
94 93 92 92 94 92 92 92 91
90 90 89 90 88 88 88
84 86 84 84 83 84 84
80 81 81 82 82 83 83
81 80 81 81 82 82 83 83
80 80 80 80 79 80 80 80 80
70 70
60 60 61
%

%
50 50
40 40
30 30
20 20
10 10
0 0
18-Feb 18-Mar 18-Apr 18-May 18-Jun 18-Jul 18-Aug 18-Sep 18-Oct 18-Nov 18-Dec 19-Jan 18-Feb 18-Mar 18-Apr 18-May 18-Jun 18-Jul 18-Aug 18-Sep 18-Oct 18-Nov 18-Dec 19-Jan

Achivement Target Achivement Target

KTD WMD
100 100
96 96 96 96 95 94 95
94 90 93 92
90 89 90 91 90
89
83 84 84 83 81 82 82 84
83 83 84 84
80 81 81 82 82 83 80 80 80 80 80 81
80 80 80 80 80
76
73 70
70
65
60 60

%
50
%

50
40 40

30 30

20 20

10 10

0 0
18-Feb 18-Mar 18-Apr 18-May 18-Jun 18-Jul 18-Aug 18-Sep 18-Oct 18-Nov 18-Dec 19-Jan 18-Feb 18-Mar 18-Apr 18-May 18-Jun 18-Jul 18-Aug 18-Sep 18-Oct 18-Nov 18-Dec 19-Jan

Achivement Target Achivement Target

 3. Supplier Quality
SQI Update: Supplier Response Time (SRT) & Summary – January’ 19

13

Reasons for low SQI response time

Poor response from suppliers
• During the month 5 SQIs not responded by various suppliers.
• During the period main contributors are Jantsa and Xinjida

Counter measures

• Send reminders, push through the material buyers

• Already addressed the issue with main problematic suppliers – Jantsa and Xinjida to expedite the process
3. Supplier Quality
Recurrence tracker – January’ 19
Recurring issue Supplier Strategy
14
Contaminated Pig Iron Nizi SCAR Management

Steel scrap out of specs Orient Supplier Visit

Incorrect compound sheet length AMW SCAR Management
 4. Changes that could affect the QMS
15
Status
Plant # of changes
Approved Pending Rejected

ETD1 7 2 5

KTD 5 5

ETD2 2 1 1

WMD 2 2

Important Changes
• Reduce black compound volume of constructional risky PID s. in order to
mitigate risk of product rejection due to black compound layer distortion. – Initiate
by ETD 1
• Implement vent less Segmented mold with 2 parts for each half. Separation
created to release air but not flash. No drilled vent holes. 15x41/2-8 MAGNUM -
Initiate by ETD 2
• 1st side of the band machining changed to vertical lathe machine form
conventional lath – Initiate by WMD
© 2011 Camoplast Solideal Inc. All rights reserved.
15
 16

Factory Quality Update- ETD1

1. Highlights/Lowlights
2. Quality Dashboard
3. Key issues
4. Action status
1. Highlights/Lowlights : ETD1
Month Highlights YTD Highlights 17

• Introduced 1mm wider line as shown in the bellow • Positive tread on scrap Tires
picture to identify the turn mold.
Implemented size :
21x8-9 Xentra

Positive Opportunities Negative Threats

• Introduced USM 36 device to identify the layer distribution

(Non Distractive Test).
• Planning card errors has been increased. Countermeasures
• Reduced compound dumping and warming temperature to requested through the NCR from R & D.
eliminate the pre curing at loop 05.
2. Quality Dashboard: EDT 1- January’19

18
3. Key Issues : ETD 1

19
4. Actions : EDT 1
Current month 20

February Priorities Target Activities

1 Implement new problem solving process for 28/02/19 Root cause analysis for delamination issue.
bonding base middle layer warranty claims.
2 BIQ awareness session for all QC/QA 28/02/19 Conduct the off day training sessions for 3 shift.
Members

3 Complete the mounting test for 23x12-12 with 28/02/19 Conduct the test.
6 Beads.

Previous month
January Priorities Target Activities
1 Initiate the Loop 10 world class PFMEA . 31/01/19 Identify the elemental level activities. √

2 Validate the line one new closing press 31/01/19 Track the existing defectives.
√

3 Conduct the barnstorming sessions to identify 31/01/19 Consider the repetitive process issues.
the error proofing devices at Loop 10. √
 21

Factory Quality Update- ETD 2

1. Highlights/Lowlights
2. Quality Dashboard
3. Key issues
4. Action status
1. Highlights/Lowlights : ETD2
22

Month Highlights YTD Highlights

• Achieved Inflow level 5.23% which is 5.2 % better than the • Achieved quality outflow ppm 602 which is 13.7 % better than the
budget.
budget

Positive Opportunities Negative Threats

• Modification of 6 presses in cured on line were completed • Scrap tire 0.179% which is 19 % lower than the budget

which are improved quality and productivity.

2. Quality Dashboard: EDT 2- January’19

23
3. Key Issues : ETD2
24

Concern Cause Countermeasure Status

18 No of tyres were  Movement between wheel inner diameter and • Evaluate the effect of thermal expansion Open
scrapped due to core outer diameter due to higher wheel ID • Measure core D at the mold cleaning
Eccentricity bad in than mold core OD (323X100)
Injection line.
• Maintain excess core pin storage
• Inspect the core pin dimensions during mold
(323X100 – 9 tyres &  Wheel moved inside the cavity due to worn-out cleaning
12X4.5 – 9 tyres) the core pin taper (12X4.5)
4. Actions : ETD2
Current month
February Priorities Target Activities
1 Minimize the Internal customer • Reduce the internal customer • Analyze the current situation of problem 25

complaints related to WMD plant complaints • Root cause analysis

2 Start the skill up program for team
members.
“Redefine skill up project of Production
department”
3 Complete the scheduled internal audits
according to the plan
• Increase the product quality
• Improve the skills & knowledge
• Improve the process control &
QMS System
• Prepare an action plan
• Review the progress of actions with monthly basis with WMD plant
• Make the document searing folders (Use current documents – QNFP,
WSS, Quality plan, Spec & other relevant documents)
• Identify the skill gaps and Arrange the training seasons
• Review the progress
• Auditing & arrange the post audit meeting
• Root cause analysis
• Prepare the action plan
• Implementation & Progress review

Previous month

January Priorities Target Activities

1 Conduct visual R & R for F QC
members
2 Reduce the flash %
3 Finalize & update error proofing
register as per current situation.
• Improve visual inspection ability
of the FQC members
• Achieve the scrap cost & RRW
• Improve process control
• Select the team
• Arrange refreshment work shop
• Prepare the action plan for next step
• Monitor the flash behavior in PID wise.
• Analyze the SG variation of 2nd stage compound
• Review current updated
• Identify the gaps
• Implement & progress review
 26

Factory Quality Update - CV

1. Highlights/Lowlights
2. Quality Dashboard
3. Key issues
4. Action status
5. Scrap Overview
1. Highlights/Lowlights : CV
Month Highlights
• QA new structure implementation on Nov. is on good
status.
• PID-5 SAP product confirmation is done for production.
OEM yield calculation has been created and follow up
during daily report.
• QIS Pilot Project Implementation, final training by QiS
done.
Positive Opportunities
• QIS Pilot Project Implementation
• Flash reducing project is on good process.
• Establish and Improve FTY for Toyota OEM
• Problem Solving process is on improvement and
documentation.
YTD Highlights 27
• ISO 9001:2015: Successfully achieved
• KION-LINDE OEM qualification & shipment: Done
• OEM compliance project is launched
• Toyota OEM audit: Passed with 100/100
• MHI OEM audit: Passed with 95/100
• BIQ audit by BU Quality team done ( 68 % )
• Toyota OEM manufacturing started 28 November
Negative Threats
• High crack quick defect for size 18x7-8 RES330, 18x7-8
MAG ( under investigation )
• QiS project – on line connection between QiS & HMI,
need external help ( Alex ).
 2. Quality Dashboard: CV - January’19
QUALITY KPIs Dashboard_Camso Vietnam_FY 2018-19

ACT BG ACT YTD Index 28

BG ACT Index
Category # Type of Waste_Scrap Unit FY FY FY ACT
Jan 2019 Jan 2019 ACT/BG
2017/18 2018/19 2018/19 YTD/BG
Scrap I Compound Scrap % in ton 0.72 0.60 0.44 0.48 0.37 0.76 0.73
Scrap II Bead & Inner Heel % in ton 0.06 0.07 0.06 0.05 0.05 1.08 0.79
Scrap III Green Tire % in ton 0.20 0.15 0.09 0.09 0.12 1.35 0.63
Scrap
Scrap IV Flash % in ton 1.28 1.24 1.39 1.14 1.38 1.21 1.12
Scrap V Cured Tire % in ton 0.97 0.95 0.63 0.85 0.55 0.64 0.66
Total Scrap I + II + III + IV + V % in ton 3.23 3.01 2.60 2.73 2.46 0.90 0.86
Scrap I Compound Scrap % in COP 0.65 0.70 0.41 0.56 0.38 0.67 0.58
Scrap II Bead & Inner Heel % in COP 0.05 0.04 0.03 0.04 0.02 0.63 0.85
Scrap III Green Tire % in COP 0.17 0.25 0.07 0.15 0.12 0.79 0.28
COP
Scrap IV Flash % in COP 1.50 1.16 1.61 1.05 1.68 1.60 1.39
Scrap V Cured Tire % in COP 0.91 1.10 0.63 1.02 0.54 0.53 0.57
Total Scrap I + II + III + IV + V % in COP 3.29 3.30 2.79 3.10 2.74 0.89 0.85
FTY (First Time Yield) % 96.6 95.0 96.1 96.50 96.18 1.00 1.01
Repair (Inflow) % 2.55 3.15 3.37 2.65 3.33 1.26 1.07
Claims (Outflow) ppm 583 1200 911 1200 911 0.76 0.76
CIM response Time days 20 20 19 20 19 0.95 0.95
BIQ Level II Compliance % 45 85 68 85 68 0.80 0.80
Full Cost of Quality K$ 1078.1 1067.1 519.1 95.25 36.28 0.38 0.49
Comment:
- Flash scrap is slightly increased, scrap focus on TL2,CR; good flash controlling in TL1 with new end of line TL1 with weigh system to study finished tire
weight & BOM.
- Component scrap is increased due to some issue with the machine, issue had been fixed.
- Cured scrap tire is on good trend.
- FTY is slightly decreased due to high repair with cut/crack defect, some action had been done for improve the FTY.
 3. Key Issues: CV

29

Concern Cause Countermeasure Status

High crack quick scrap  Manual unloading / machine  Problem solving for Crack quick in 8 inch ( weekly basis Project On going
rate of 8 inch (18x7-8,  Vent hole position FU )
16x6-8)  Quick core design
 Demolding speed  Reduce demolding speed form 2 to 6 second ( positive
result )

 Vent hole position adjusted ( no improvement )

 Core design same as SL design

 4. Actions : CV
30
Current Month
February Priorities Target Activities
1 Flash Reduction Project _TL1 April 2019 On going
2 QiS Pilot Project Implementation Dec 2018
On going
3 Flash Reduction Project _TL1 April 2019
On going
4 Cut defect on size 18x7-8 MAG due to flash from Feb 2019
On going.
venting hole

Previous month
January Priorities Target Activities

1 Final inspection improvement project:- FI under QA Nov 2018 Done

2 Crack quick Problem solving project ( see page No5 ) Mar 2019
On going
3 QIS Pilot Project Implementation Dec 2018 On going, monthly activities
achieved
5. QM – Scrap overview : CV

 Total Scrap trend: 31

 32

Factory Quality Update- KTD

1. Highlights/Lowlights
2. Quality Dashboard
3. Key issues
4. Action status
 1. Highlights/Lowlights : KTD
33

Month Highlights YTD Highlights

16.9x28 and 18.4x26 bead braking – trials are success and need to be Successfully completed the customer visit (JLG, and BOTR)
take the decision to implement best solution .(Out flaw )

1200x20 20PR successfully solve the less compound on bead defect by

increasing the bead diameter by 2 mm (In flaw)

Positive Opportunities Negative Threats

Extrude profile for bead apex getting swelling and scorching

40x16x30 expandable core stopped due to over expansion the

tire ID
 2. Quality Dashboard: KDT - January’19
ACT FY BG YTD FY ACT YTD FY Index Index ACT
Category # Type of Waste Scrap Unit BG Jan ACT Jan
2017/18 2018/19 2018/19 ACT/BG YTD/BG YTD

34
Scrap I. Raw Material Cop 0.02 0.02 0.020 0.02 0.01 0.50 1.33

1. Bead wire scrap Cop

2.Inner Heel scrap Cop

Scrap II. 0.04 0.04 0.040 0.04 0.04 1.00 0.93

3.Tire cord ,Carcass,Layers Cop

Scrap

Scrap III. Green Tire scrap Cop 0.01 0.01 0.000 0.01 0.00 - -

Scrap IV. Flash+Trimmed dust Cop 0.31 0.29 0.31 0.31 0.31 1.00 1.09

Scrap V. Scraped tires Cop 0.15 0.13 0.14 0.14 0.14 1.00 1.08

Total scrap Sc I + II + III + IV + V Cop 0.52 0.49 0.51 0.51 0.50 0.98 1.05

FTY ( First Time Yield ) % 98.08 98.08 98.19 97.95 98.65 1.01 1.00
Repair ( In flaw ) % 1.81 1.75 1.75 1.81 1.35 0.75 1.00
Claims ( Out flaw ) ppm 460 430 536 460 523 1.14 1.25
CIM response Time days 4 15 4 15 3 0.20 0.27
BIQ Level II Compliance % 66.5 85 71 70 77 0.91 0.84

Full Cost of Quality K$ 405 322 37

Claim out flaw - Total claims -16 ; Solid- 3 (1400x24 MG thermal explosion) ), Air -13 ( 16.9x28 /18.4x26 -Bead braking out-10., )
Actions - bead braking out ; 2 trials are performed well in 2 option final decision take on next week
1. Add the nylon fabric to bead area as the reinforcement - life time is not changed failure were changed to the side wall(cost increased by
.9% 1.37$)
2.Increased the no of ply in the carcass (2plies) - life time is doubled (cost increased by 3.4% (5.2$))
 3. Key Issues: KTD
• 18.4 - 26 IND / 12 PR SL R4 CAMSO,18.4 - 26 IND / 12 PR SL R4 CAMSO 35

increasing the bead breaking out defect

No Action Status
Add the nylon fabric to the bead area – need to be re
1
validated the change Done and positive the result
2
Increased no of ply in the carcass (2 plies ) Done and positive the result
3
Implement the best solution Pending
 3. Key Issues: KTD
Concern Cause
Steal Band (40x16x30)receiving over 1. Not functioning 2ndery
the diameter and 3 tires over the max inspection
diameter 1. Assume that when
inadequate collapsing the core
bands get scratch and
accumulate in-between band
and core .
AWP rubber + metal bonding open on Investigation going on
wheel edge
36
Countermeasure Status
1.Introduce the gate -06 inspection at steal band Done
issuing (WMD)
2. (a) Add more free space slots in to the
expandable parts.
1 . Trial done ( side edge grinding after the tire Done
get cold ) result is positive
2. Introduce the solvent to clean the side edges Going on
to improve the detection @ FQC
 4. Actions : KTD
Current month
37
February Priorities Target Activities
1 Action implementation for BIQ project – shop floor Remaining people to be completed
people awareness and WSS completion

2 Continue the PFMEA Activities Action proposal for high RPN CFT weekly meeting

3 Actions for bead breaking issues of the 16.9x28 Implement the Corrective action Final decision to be taken
and 18.4x26

4 Action for over expanding the band of 40x16x30 Implement the Corrective action Stopper to be added , increase the c
tires

Previous month
January Priorities Activity Status
1 Action implementation for BIQ project – shop floor More 50 people done , WSS
people awareness and WSS completion 80% completed
2 Continue the PFMEA Activities Action proposal for high RPN 2 Session done

3 Actions for bead breaking issues of the 16.9x28 Implement the Corrective Trials are completed
and 18.4x26 action
4 Action for over expanding the band of 40x16x30 Implement the Corrective Adding extra slots are
tires action completed
 38

Factory Quality Update- WMD/WAD/WPD

1. Highlights/Lowlights
2. Quality Dashboard
3. Customer Complain
4. Key issues
5. Action status
6. Supplier COPQ & Other issues
1. Highlights/Lowlights : WMD/WAD/WPD
Month Highlights
• All KPIs are achieved
Positive Opportunities
• Supplier quality review process started and
process continued to control block stock of RM
• Quality circle project continued with focusing
COQ
• Discussions are continued with R&D and project
team to included tyre assembly process for
PDP
39
YTD Highlights
• All KPIs are achieved
Negative Threats
• Material (steel ) quality issues of Essar
16/14/12mm due to surface quality – 47 tons in
blocked stock
• Product audit test : application test are not
continued due to que/priority @ R&D
• Slow moving paint rejection rate high, due to
forecast / low demand and MOQ –
2. Quality Dashboard: WMD/WAD/WPD-January’19

40
 3. Customer Complain- WMD/WAD/WPD

41
Source of
# Date Description Corrective action Status
complaint
BOTR has send Acceptance criteria to
Pin holes in 15 X 5 - Acceptance criteria implemented follow @ the inspection and request to
CIM 666 30.09.2018 BOTR cured on (Casted - FQC record sheet attached on the attached visual inspection report in each
wheel) palate (as customer request) pallet

Acceptance criteria

Note : rejection rate around 2% -3% and discussion going on with supplier to simplify
inspection criteria.
 4. Key Issues: WMD/WAD/WPD

42

Concern Cause Countermeasure Status

Steel / rim band crack rate has been
increased

Technical/Engineer team closely follow the

Weld Cracks on band critical parameter behavior of the 630 KVA Action has been taken to
welding, machine and fine adjustment of continued identify RCs,
to control crack rate

User story of Calibration

management system + Both User Stories have been hold US on hold
Barcode for wheel
 5. Actions : WMD/WAD/WPD
Current month
February Priorities Target Activities
1 BIQ – CAMP Feb’19  24 nos, sessions to cover 300 production team 43

Organized program on 12,13 and 14th for and 100 nos, staff and other plant team
selected front line production team
2 Conduct session for coating operator Feb’19  Organized training session for 3rd batch
qualification process @ painting line

Previous month
January Priorities Target Activities
1 BIQ – CAMP Feb’19 4 workstations arranged to discuss BIQ focus areas
Propaganda has been organized for shop floor + TQM
campaign on BIQ in Feb’19
2 Prepare corrective actions for external audit Jan’19 - Organize CFT meeting
findings of ISO 9001 & ISO 3834 - Finalize action plan
3 Review incident reporting process and actions Jan’19 - Discussion with production and HR team to
to strength the process action follow up process for incident reporting by
PQC
4 Continue PFMEA process for Painting, assembly Jan’19 - Band welding process action plan prepared for
and rim forming areas + Action finalize for band high RPN and discussion will be planned with plant
welding process management team
6. Supplier COPQ & Other issues
COPQ – Raw material CWD
44
 45

Thank You