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GLOBAL OPERATIONS UPDATE March 19, 2008

GLOBAL OPERATIONS UPDATE March 19, 2008. Quality Update. 2007 CI Actions Q1 ISO Audits Standard practice Quality Organization realigned by Business & Region PPF Customer Quality Focus Team Launched Q1 – Q3 Top 30 Asia suppliers audited / trained Q2

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GLOBAL OPERATIONS UPDATE March 19, 2008

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  1. GLOBAL OPERATIONS UPDATEMarch 19, 2008

  2. Quality Update 2007 CI Actions Q1 • ISO Audits Standard practice • Quality Organization realigned by Business & Region • PPF Customer Quality Focus Team Launched Q1 – Q3 • Top 30 Asia suppliers audited / trained Q2 • KS / WSR Customer Quality Focus Team Launched Q3 • Sourcing & QA alignment Q4 • Open field RFCA’s reduced by 62% Launch Customer QA Focus

  3. Quality System – Current State Quality Control HHI Current State Quality Assurance Moving from Quality Control to Quality Assurance

  4. Quality Timeline 2008 2008 Quality Focus Q1-Q4Process Quality Assurance • Top 10% NAFTA & Asia Suppliers Quality Audit annual recertification • Top 10% Latin & Asia suppliers annual Social Accountability Audit • Asia & NA Quality Teams: • Train & Implement: self-audit; external-audit; corrective actions; standardized work & achieve continuous improvement Q1 Improved EOLA Quality Control • Same QA resources refocused for greater effectiveness Q1 Improved Intranet: ISO electronic documentation access Q2 NPI Process Improvement • Internet project tracking • Revised Deviation Procedure – Done • Revised Capital Approval Process – Done • Revised Part Qualification Procedure • Revised Warehouse Hold Process Coach Quality Assurance self-auditing “Upstream”

  5. HHI Lean Six Sigma Quality Model

  6. Global Lean Six Sigma Quality

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