Slide 1

DMAICReduction of obsolete material

Manaus

1Form #: 00-LS80-F103-A Revision Date 02.03.2011Team IntroductionProject champion/leader: Rejane Souza Project sponsor: Francisneto SilvaLean Assistant: Caio SousaSite Lean Manager: Marcio SousaCore team members: Adriana Campos Sandra Silva Rodrigo Marques

Extended team / stakeholders (if applicable): Gil Campos 2Form #: 00-LS80-F103-A Revision Date 02.03.2011DefineProblem/Opportunity StatementDue to demand CUT week 48. Stock on hand of remote control of 2.649 pcs.Project ScopeMinimize liabilityGoal StatementReduce minimum 80% on E&O from: $ 8.309,00 to $1,661.80; Metrics impacted: E&O and cancellation.Business Case / Financial ImpactNegotiate with supplier to absorb the total excess of 2.649 pieces. It represents $ 8.309,00 of total E&O.3Form #: 00-LS80-F103-A Revision Date 02.03.2011DefineQuality ParametersProject TimelineDemand drop due customer request, we can see the effects on E&O report.Voice of the CustomerExternal customers: As this is local part controlled via JIT , customer refuses pay to Jabil this material obsolete.Internal customers: We are unable to consume the material due to line down.PhaseDate PlannedStart DateDate CompletedDefineWK 1246WK 1246WK 1247MeasureWK 1248WK 1248WK 1248AnalyzeWK 1248WK 1248WK 1248ImproveWK 1249WK 1249WK 1250ControlWK 1250WK 1250WK 12514Form #: 00-LS80-F103-A Revision Date 02.03.2011Measure SummaryData CollectionAfter demand drop we analyse the local parts and focus on major values items. We identify a good opportunity to reduce the E&O of $8.509,07.5

0Measurement System AnalysisForm #: 00-LS80-F103-A Revision Date 02.03.2011Analyze SummaryBrainstorming6How to reduce E&O due demand drop?1 - Negotiate with customer to increase with additional demand to consume obsolete parts

2- Checking if another plants has demand to consume the excess quantity;

3- Return to vendor;

4- Offer to broker, distributors;

5- Offer to customer service; Form #: 00-LS80-F103-A Revision Date 02.03.2011Analyze 7C&E MATRIXComments : Based on C&E matrix, our team selected the major causes and them scored its. The results was Return to vendor.Issues potencialAdriana CamposRejane SouzaRodrigo MarquesSandra Silva

TOTALAdditional demand from customer3939729Checking another plants demand333381Return to vendor99996561Sell to broker; distributor11313Offer to customer service3933243

Form #: 00-LS80-F103-A Revision Date 02.03.2011Improve Summary8

You can look on the graphic after material return to local vendor Was reduced of $8.509,07 total E&O value. Buyers is still working to reduce all obsolete parts.00Form #: 00-LS80-F103-A Revision Date 02.03.2011Improve SummaryRoot CauseSolutionPilot / simulation resultsRETURN TO VENDOR1- Negotiate with supplier; 2- Negotiate price value with supplier;3- Supplier acceptance;4- Start sales process;5- Separate the physical material;6- Do invoice;7- Shipped;Evidence below after sale:Material invoiced to supplier on 12/12/12.9Supplier acceptance sent by email on October 12th, 2012

Form #: 00-LS80-F103-A Revision Date 02.03.2011Control SummaryImplementation PlanProcess OwnershipFuture OpportunitiesThe status of the implementation plan will be discussed on Materials Meeting of refered customer. Replication:Deploy the project for other WC cell structureFollow-on projects:The project is recommend to all purchasing team.DocumentationThe documentation was validated by BU team and PU.Buyer is owner to check and audit the metrics and issue tracking and resolution with support the PU team.

10Form #: 00-LS80-F103-A Revision Date 02.03.2011Project SummaryProject ApproachWhich tools were the most insightful? Brainstorm, C&E matrix.What were the critical root causes of the problem? Customer demand drop.All actions was concluded and implemented with success. Impact on Shareholder ValueU$ 8.309,00 per month savingProblem statement: Buyer initiate negotiation to sell obsolete material due demand drop.Project goal: Reduce 80% of the value $ 8.309,00 Project start and end date: WK1248 / WK1251Executive Summary11Form #: 00-LS80-F103-A Revision Date 02.03.2011