COMPETENCY ASSESSMENT and DEVELOPMENT PROCESS

1. COMPETENCY ASSESSMENT and DEVELOPMENT PROCESS 14 May 2009

2. AGENDA • Vision and Objectives for People Development • Training and Development Process • Skill Matrix Assesments for BC • Skill Development • Maximizing the Efficiency and Effectiveness of Trainings • Training Methodologies for “Zero Error” • Developing BC as “Internal Trainer”

3. April 09 BLUE COLLARS WHITE COLLARS TOTAL EMPLOYEES 5.831 1.153 6.984 AGE 35.97 31.26 PLANT PROFILE Key datas of TOFAS : Foundation: Total area (m2): Covered area (m2): Models (nr): Production Capacity: October 1st, 1968 933.832 m2 346.275 m2 5 models 400.000/year

4. OUR OBJECTIVES • Create an environment where people are encouraged tolearn, develop and use their full potential • Create a culture in which “learning and teaching to others”are highly valued • Systematic training programmes to createhigh-calibre human resources at every level • Highly motivated and engaged people to take on additional skills

5. OUR VISION TOFAŞ HR MANAGEMENT; Attracts innovative, participative and multi-skilled individuals who can improve themselves and others, quickly adapt to changes, and have a global insight, Develops these individuals to reach the company vision, supports their accomplishments and fosters their engagement in the company, Constitutes a simple and dynamic organizational structure, culture and processes to ensure the achievement of company goals. 1 2 3

6. CHECK ACT Evaluation of Trainings Adjustment Changes in Inputs Standardization and Deployment Financial Analysis: Benefit/Cost Ratio DEVELOPMENT NEEDS Revised and Advanced Trainings Operators Evaluation of Training Cycle Lean Team Leader Increasing the Efficiency and Effectiveness of Trainings • Training methods • Learning quality • Trainer quality Leader Specialists Managers New Hires Increasing Trainer Quality TRAINING and DEVELOPMENT PROCESS PLAN DO Realising Development Activities Determining Training and Development Priorities (Need Analysis) On The Job Trainings Classroom Trainings • Cost Deployment Matrix • QA Matrix • Human errors system • Breakdowns • Safety matrix • Skill matrix • Competency assessment results OPL TWTTP Mentoring Development Programs for Spesific Groups (Leaders, Lean Team Leaders, Managers etc.)

7. 1 Determining Required Skills / Knowledge and Expected Levels Leaders 2 Determining Current (Realized) Skill Levels Leaders 3 Gap Analysis and Preparing Radar Charts Leaders 4 Defining Training Priorities and Preparing Training Plans HR / Leaders 5 6 Realization of Trainings Evaluation and Revision of Skill Levels after Trainings (or review in 3 months period) HR Leaders SKILL MATRIX MANAGEMENT

8. SKILL MATRIX MANAGEMENT Skill maps and trainings tracked and revised for 6000 employees

9. SKILL LEVELS 0 He has no idea. • He has’nt got knowledge or training about Process, System or Operation. 1 He has therotical knowledge. • He has knowledge about Process, System or Operation or got Training. • He cannot apply. 2 He can work/ apply under observation. • He knows application needs and how to make. • He hasn’t got self-esteem about realizing the standard required for application. • He can make application or can act under observation / with a team. He can work/ apply independently. 3 • He has detailed knowledge about Process, System or Operation Needs. • He knows key (critical) points on Operational Processes and knows to realize them. • He can realize the process in time and standard required autonomously. 4 Specialist (She/He Can Train) • He has expected detailed knowledge to train about Process, System or Operation. • He can explain Operation Details, their reasons.

10.       EXPECTED – CURRENT LEVEL SPOT WELDINGROBOTS ARC WELDING MACHINE EXAMPLE ABB ROBOTS Expected Level : 4 1. Name/Surname Realized Level : 3 2. Name/Surname      0 He has no idea. He has theoretical knowledge. 1  Expected (Target) Level 2 He can work or apply under observation. Current (Realized) Level     3   He can work or apply autonomously.  Specialist (Can Train) 4    

11. SKILL MATRIX and RADAR CHART

12. SKILLS DEVELOPMENT PLAN

13. SKILL DEVELOPMENT for SPECIALISTS Skill Map Radar Chart Development Plan

14. SKILL DEVELOPMENT ON BOARDS BodyP.U. Press P.U. Assembly P.U.

15. TRAINING AREAS (ASSEMBLY)

16. TRAINING AREAS (ASSEMBLY)

17. TRAINING AREAS (BODY, PAINT AND PRESS) Body Training Area Paint Training Area Press Training Area

18. SKILL EVALUATION FORM for BC Evaluation of “on the job” training

19. 4 WEEK - PROGRAM HR MANAGEMENT JOB SAFETY WCM PRINCIPLES Operational Trainings (Plant) 18 hours 32 hours 40 hours 90 hours ORIENTATION PROCESS FOR NEWCOMERS (BC) 23 hours 4 hours 18 hours 45 hours 45 hours Classroom Workshop Training Area Production Area Production Area Production Area Theoretical Training Practical Training Evaluation Evaluation EXAM Operation Monitoring (Plant) Operation Training Production Work Under Observation (Follow-up) START TO WORK Evaluations by Lean Team Leaders • Total Trained Employee: • 2006 : 900 • 2007 : 2780 • 2008 : 975

20. TRAINING and DEVELOPMENT PROCESS

21. TIE Application MURA (Standardization) MUDA (NVAA) MURI (Ergonomy) TRAINING and DEVELOPMENT PROCESS Training Need Analysis Trainings Realised to Eliminate NVAA (the most prior losses) in Assembly we have focused on trainings for the most prior losses Financial Evaluation of Trainings B/C : 7,77

22. EXTENSION OF TRAININGS in 2008 : NVAA ASSEMBLY DOBLO LINE ASSEMBLY LINEA LINE KNVAA NVAA 2008 Training Plan 2008 Training Plan

23. Increasing learning quality Increasing Standardization Visual Technics Simulations Real examples recorded in Doblo Line used as training material (lessons learned) Teaching how to see error and risks (True/false visuals) Using SOP as Training Material Increasing the involvement of employees for learning Involvement of Lean Team Leaders Involvement of Operators Cross Trainings B/C =8,1 WPO Boards showing the progress of WPO studies to involve operators WPO WPO; Leader Team Leader Prod. Eng. Training of Lean Team Leader Logistic; Logistic Specialists. Packaging Eng. Training of Trainers (Lean Team Leaders) Logistics INCREASING THE EFFECTIVENESS OF TRAININGS

24. KNOW-HOW / COMPETENCY DEVELOPMENT PROGRESS for NVAA ASSEMBLY LINEA & MCV LINE LEAN TEAM LEADER PRODUCTION ENGINEERING LEADER LOGISTICS SPECIALIST

25. NEED for “INCREASING EFFECTIVENESS of TRAININGS” for ZERO ERROR HUMAN ERROR ELIMINATION PROCESS ROOT CAUSE ANALYSIS of HUMAN ERRORS

26. realised realised target: 0 target: 0 NEED for “INCREASING EFFECTIVENESS of TRAININGS” for ZERO ERROR HUMAN ERROR (ASSEMBLY- DOBLO) HUMAN ERROR (ASSEMBLY- MCV) We need “Training System for “Zero Human Error”

27. ANALYSIS of ROOT CAUSES of LACK of KNOWLEDGE / SKILL Analysis of Root Causes of Lack of Knowledge / Skill Root Causes of Lack of Knowledge / Skill Training has not been divided into teachable parts (overloading of knowledge) Critical points and their reasons have not been highlighted by each trainer Unlearned parts have not been defined in the process of training The follow-up and feedback has not been done after training Trainings have not been standardized, variable from trainer to trainer. Internal trainers’ competencies have not been evaluated

28. 4-Step method Systematic mentoring/ guidence INCREASING the EFFICIENCY and EFFECTIVENESS of TRAINING SYSTEM Precautions to Maximize Effectiveness of Trainings 1- Increasing the standardization in trainings methods and processes 2- Splitting training into steps and making repeat in every step by explaning the critical points and their reasons Root Causes of Lack of Knowledge / Skill Training has not been divided into teachable parts (overloading of knowledge) 3- Mentoring during the process of training and after the training Critical points and their reasons have not been highlightedby each trainer 4- Using alternative learning methods Unlearned parts have not been defined in the process of training • Video records, lessons learned / simulations, test areas etc. • Teaching error (learning by doing error, teaching to see error risks) The follow-up and feedback has not been done after training

29. “4-STEP METHOD” Splitting training into 4 steps; increase standardization and preventchanging the method from trainer to trainer

30. INCREASING the EFFICIENCY and EFFECTIVENESS of TRAINING SYSTEM Precautions to Maximize Effectiveness of Trainings • Development and certification of internal trainers • Ensuring the implementation of “4-steps” method by internal trainers • Verifying the success of every step of learning Root Causes of Lack of Knowledge / Skill Trainings have not been standardized, variable from trainer to trainer. Internal trainers’ competencies have not been evaluated Internal Trainer Development Process

31. INTERNAL TRAINER DEVELOPMENT PROGRAM Target Group: Lean Team Leaders

32. 1. DAY 2. DAY CLASSROOM CLASSROOM • All participants’ presentations (video record) before learning the method • 4 Step Method • Prepare training document with4 Step method. • Training simulation of each person and feedback • Give feedbacks to all participants INTERNAL TRAINER DEVELOPMENT PROCESS INTERNAL TRAINER CERTIFICATION and DEVELOPMENT PROCESS 4 WEEKS 5. WEEK EVALUATION and CERTIFICATION 3. DAY OBSERVATION and MENTORING PRODUCTION LINE PRODUCTION LINE PRODUCTION LINE • Practical Implementation • Prepare Training Documents • Give Operational Training • Observation and Feedback (by Leader) • Evaluation by Leader • Evaluation • 2nd week • 4th week • Observation and Feedback • Evaluation of Performance and Certification • (Success 96%in Certification) • Simulation: All students prepare and present training • Mentoring • Evaluation of training efficiency • Giving 2-week mission

33. EVALUATING the EFFICIENCY of INTERNAL TRAINER DEVELOPMENT PROCESS B/C : 5.68 ASSEMBLY- MCV & LINEA LINE

34. PEOPLE DEVELOPMENT – “BEST PERFORMANCE 2007 REWARD” PEOPLE DEVELOPMENT –“BEST PERFORMANCE 2007 REWARD” Speed Champion in Fiat Group (People Development - “Best Performance 2007”)

35. INVESTOR IN PEOPLE REWARD (2007) • Tofas received IIP reward; • The first Turkish production company • The biggest Turkish company

36. “TRAINING AND DEVELOPMENT REWARD” 2008 “HR MANAGEMENT ASSOCIATION of TURKEY” • Tofas received “Training and Development / Talent Management” Reward • The best Turkish company in Training and Development in 2008

37. COMPETENCY ASSESSMENT and DEVELOPMENT PROCESS 14 May 2009