ASHEVILLE PLANT OVERVIEW Allison Moses

Vice President & General Manager 18Nov08

~ 67 acres ~ 400,000 square feet of space 2 production buildings plus office space Final Paint Bldg Foreign Trade Zone ~ 250 employees

Core Competencies: Weld, Paint, Assembly

In the last 2 years, we have created ~70 new jobs and invested ~21MUSD in new production equipment/processes.
Volvo Construction Equipment
VCE ASH, A.Moses

ASHEVILLE PLANT SUPPORTS VOLVO CORE VALUES

ISO 90012000
Quality

OHSAS 18001 Safety

ISO 14001 Environment

Volvo Construction Equipment

VCE ASH, A.Moses

WHEEL LOADER MODELS

Assembly & Paint

L70F

L90F L110F

L60F L120F

Volvo Construction Equipment

VCE ASH, A.Moses

WHEEL LOADER ASSEMBLY LINE

Volvo Construction Equipment

VCE ASH, A.Moses

EC160C EC210C 2007/08 New Projects EXCAVATOR Fabrication, Assembly & Paint EC330C EC240C

October 07 October 07

EC360C

January 08 Planned Nov 08

Volvo Construction Equipment
VCE ASH, A.Moses

June 08

EXCAVATOR FABRICATION

Volvo Construction Equipment

VCE ASH, A.Moses

EXCAVATOR ASSEMBLY LINE

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VCE ASH, A.Moses

OFFICIAL LAUNCH NOVEMBER 9, 2007

Volvo Construction Equipment

VCE ASH, A.Moses

Cab Production
Fabrication, Paint, Assembly

Currently producing all ASH WL F-model cabs

Project start up for EXC c-series cabs 2008, full production 2009

Volvo Construction Equipment

VCE ASH, A.Moses

Site Changes in 07

Warehouse

Long Shoals Entrance

Fabrication

Assy Conveyor Pit

Volvo Construction Equipment

VCE ASH, A.Moses

The Asheville Plants Vision, Mission, Values, and Strategies are aligned with Volvo CE as well as supporting lean principles

Volvo Construction Equipment

VCE ASH, A.Moses

Volvo CE Asheville Vision Plant with a Future

Solve Problems Solve Problems Expose Problems
s uou nt ntin eme C o ov r mp I

Current State

Ideal

Safety Quality Delivery Cost Environmental Care M Employee Morale

Volvo Construction Equipment
VCE ASH, A.Moses

Operational Excellence

Delivery = One Piece Flow, in Sequence, on Demand Cost = 100% Value Added Environmental Care = Recycle, Reduce, Reuse M Employee Morale = 100 % participation VGAS; 100% ESI score

Safety = Zero Accidents Quality = Zero Defects

Plant with a Future

ASHEVILLE PLANT ROADMAP TO OPERATIONAL EXCELLENCE

2007 State Silver Shingo Award

2009 Achieve Level 3 VPS principles

National Shingo Silver Medallion

SHINGO PRIZE National Recognition VPS Assessment Score >/= 3

2010

5S + 1 Kaizens Value Stream Mapping Lean / SS Tools Policy Deployment

2008/09

Focus on Operational Excellence

2007

2006
Shingo Application Gap Analysis

2005
OPERATIONAL DEVELOPMENT [OD] Lean / Six Sigma

2004
INTRODUCTION TO LEAN

2002
JURAN PROBLEM SOLVING USING QUALITY TOOLS 5S / VISUAL FACTORY
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VCE ASH,2001 A.Moses

The journey continues

2001

VISON: A PLANT WITH A FUTURE

2008 Revision to incorporate VPS Principles

SAFETY, QUALITY, DELIVERY, COST, ENVIRONMENTAL CARE & EMPLOYEE MORALE

Asheville Plant Mission: Using Operational Excellence Model to increase productivity while decreasing throughput and cycle time; eliminate non-value added activities; meet operational key performance indicators; exceed customer quality expectations, create a strong culture of employee satisfaction and participation.

Volvo CE Asheville Plant

VOLVO PRODUCTION SYSTEM MODEL

In ltui B

TeamWork
Employee Knowledge, OD Teams, Common Goals, Policy Deployment, Cross-training

Li Vis g lin ht ual e s M Le Q , Po Is an ua ka , A / S lity -Yo nd IX Ch ke on Si ec , I gm k ns a ,

lity ua Q

T M akt ix T e im Sy d M e, Continuou ste ode Co m l nt , K Fl in s an ow uo Value stream ba , P us Improvem n ull mapping, Kaizens, problem ent solving, lean

Custo mer

Ju Ti st-in m e

Process Stability
5S + 1, Standard Work, TPM / Autonomous Maintenance, Supplier Delivery

The Volvo Way

EE Satisfaction, VGAS, Mutual Trust & Respect, Safety, Environmental Care

FOUNDATION

LINE BALANCE / LEVEL LOAD STANDARDIZED WORK

Volvo Construction Equipment

VCE ASH, A.Moses

TPM / Autonomous Maintenance 5S + 1 / Visual Factory Management

PLANT TOUR

Volvo Construction Equipment

VCE ASH, A.Moses