capacity and operating plan (hours/day, days/week).

The operating plan should meet total weekly

volume requirements and current model service requirements and shall be no more than 100 hours
per 5-day work week. The Nexteer standard work year is based on 48 weeks, 240 workdays. Any
operating plan using more than 100 hours per work week (e.g. 5 days x 20 hours per day) or
different than the standard 48 weeks, 240 working days, must be agreed upon by Nexteer. Program
capacity information will be documented in the Nomination Letter under the Program Capacity
Obligation section at time of business award. Suppliers shall be responsible to have capacity to
provide 15% or the OEM customer requirement, whichever is greater, above the aggregate Nexteer
volume on a sustained basis without additional investment from Nexteer. The additional capacity
may be produced outside of the 100-hour work week but less than or equal to 120 hours.

The full capacity for the part should be in place at the Supplier’s floor and its sub-suppliers’ floor no
later than the Nexteer Run-at-Rate date. Any deviation from this requirement must be agreed in
writing by Nexteer and will be documented in the approved Nomination Letter at time of business
award.

When specified in the APQP process, Run-at-Rate shall be based on the aggregate Nexteer
volume and is performed as a method for production capacity and quality system verification. It is
preferred to perform the Run-at-Rate analysis over multiple shifts with production operators and
including a part number change-over if appropriate. The final Run-at-Rate plan will be agreed upon
in the early stages of Supplier APQP.

Run-at-Rate will be given a status of Pass or Fail. The supplier is expected to put into place the
necessary corrective actions to ensure a successful (Pass) Run-at-Rate. An APQP Problem Case
may be issued for failure to meet agreed upon target date or for requirements not met.

NOTE: Commodity or batch-based products may demonstrate Run-at-Rate by a process analysis

to determine constraints and show enough capacity is in place to support the product release rates.

8.2.3.2

No Nexteer specific requirements for this section

8.2.4 Changes to Requirements for Products and Services

No Nexteer specific requirements for this section

Supporting Documentation, Forms or Reference for Section 8.2:

• Nexteer Supplier Website: http://www.nexteer.com/
• Supplier Suggestion Change Request Application (SSCR) – Link is located on the Nexteer Supplier Website,
Supplier Applications, Intelex: http://clients.intelex.com/login/Nexteer
• Nexteer Help Desk for Supplier Systems and Applications: gsm.systems@nexteer.com

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