Timken PSC Supplier Conference 11/5/08 Quality Management Systems

1. Timken PSC Supplier Conference 11/5/08Quality Management Systems

2. Timken PSC Supplier Quality System Expectations • Timken PSC suppliers are required to be: • ISO 9001 registered (all suppliers) • Working towards compliance / certification to TS 16949 (Automotive suppliers) • Corporate wide initiative to implement Timken Quality Management System (TQMS) at plants, key suppliers, and applicable support functions

3. Why TQMS? • Expected Benefits of TQMS • Reduction in cost of poor quality by implementing robust control processes and eliminating defects • Promotes proactive approach to quality control and improvement • Provides closed loop system using processes supporting Plan, Do, Check, Act model • Promotes communication and quality awareness throughout the organization • Enhances existing Quality System components

4. Defining the TQMS Pyramid Proactive Review for CI / Preventive Action Sharing Information Process Standardization Quality Signals Foundational Modules

5. TQMS and the Plan, Do, Check, Act Model (PDCA) Plan • VOC • Flawless Launch • New Process Launch • Management of Change Do/Check Act • GQTS (System for Managing Internal / External Quality Concerns) • Fast Response • Problem Solving • Lessons Learned • RPN Reduction • Quality Certification • Standard Work/Training • Process Control • Supplier Management • Materials Certification • Error Proofing Verification • C.A.R.E. / Verification Stations • Control of Non Conforming Material • Layered Process Audits • Outgoing Quality Audits

6. TQMS High Level Project Plan for Timken PSC Suppliers • TQMS High Level Project Plan • Timken PSC suppliers are encouraged to work with designated SQA’s to implement applicable TQMS processes: • 1st Step (March 2008): Identified 2008 modules and PSC Suppliers • 2nd Step (May 2008 – November 2008): Overview and gap analysis for selected modules • 3rd Step: (November 2008 – June 2009): Action Plans to address gaps, develop documents, train associates, implement processes, etc. • 4th Step: (December 2008 – December 2009) Monitor 2008 modules and identify / implement process for 2009 targeted modules • 5th Step: (2010 - ) Monitor 2008 – 2009 modules and implement remaining processes

7. TQMS Gap Analysis Worksheet • Gap Analysis tool includes evaluation of specific elements in 20 TQMS Categories • Element 5: Fast Response Gap Analysis Example – Assessment of Who, Where, When, Content, How, and Mechanics of Fast Response How Who Where and When Mechanics of Fast Response Content

8. TQMS Gap Analysis Worksheet (Continued) • Gap Analysis Document for PSC Suppliers includes evaluation of 290 items in 20 TQMS Categories • Fast Response Gap Analysis Document Example (Element 5)

9. Example of TQMS Module 5Fast Response Process Overview for Manufacturing Facilities (Based on Timken Bearing Plant Example)

11. Fast Response Process - Intent • Review issues on a 24 hour cadence • Engage process owners and support resources • Identify and address issues internally before they become unmanageable or customer complaints • Communicate performance (relative to key metrics) • Track issues to closure • Promote lessons learned

12. Owned by top management Championed by plant manager, facilitated by quality manager Top management from functional areas attends daily meetingThe designated participants must have backups to attend in their absence Minimum Requirements - Fast Response Meeting Attendees Fast Response Meeting

13. Designated meeting place Process, information, and status visible to plant associates Meeting starts and ends on time Meeting rarely exceeds 15 minutes for quality topics and 30 minutes for entire agenda (Timken Bearing Plant Example) Avoid “scope creep” by adhering to planned agenda Meeting performed on a 24 hour frequency Q Minimum Requirements – Fast Response Meeting Location, Visibility, Timing Fast Response Meeting

14. Minimum Requirements – Meeting Location, Visibility / Timing Fast Response Meeting

15. Start GQTS PFMEA APQP Priority (Greatest to Least) 15 Minutes Example of Fast Response Topics Discussed at a Timken Bearing Plant

16. Fast Response Process – Flow Chart (Timken Bearing Plant Example)

17. Minimum Requirements – Quality Elements Content (Timken Bearing Plant Example) Customer Quality Issues • All external complaints and concerns • CUSTOMER ACCEPTANCE REVIEW & EVALUATION (CARE) • Review CARE Station Results (Enhanced Containment Activities) • Review of all error proofing verifications non-conformances reported and tracked CARE Containment Status TQMSA Error Proof Verifications

18. Minimum Requirements – Quality Elements Content (Timken Bearing Plant Example) • Review “high risk” LPA findings • Review repetitive “standard risk” LPA findings • Significant daily scrap events exceeding a defined limit Layered Process Audits Quality Gates

19. Minimum Requirements – Meeting Structure (Timken Bearing Plant Example) • Established and posted standard work (Agenda) • Established and posted entrance and exit criteria (Standard Fast Response Tracking Matrix) Fast Response Meeting

20. Minimum Requirements – Meeting Agenda (Timken Bearing Plant Example) • Covers minimum requirements • Facilitates cadence of meeting • Focus on planned agenda keeps meeting brief • Meeting is for status monitoring, providing communication, and assigning action items – not problem solving! • Follow up meetings should be schedule as required Fast Response Meeting

21. Fast Response Report Out and Tracking (Timken Bearing Plant Example) Issues Tracking • Minimum report on issues is a 3D (containment, root cause, corrective action) • Issue owner reports on containment within 24 hours, next report out within 5 days for internal issues, and daily for external concerns • Status updates and exit criteria reviewed • Fast Response is not for problem solving. Schedule follow up meetings as required!

22. Tracking Matrix (Timken Bearing Plant Example) Issues Tracking

23. Tracking Matrix (Timken PSC Supplier Quality Example) Issues Tracking

24. Impact of Fast Response Process • Increases awareness through organization • Enables the team to work on issues using a standard methodology • Faster communication and resolution of issues • Same information and expectations shared with all members of team (consistent message) • Reduced rate of customer complaints • Improved customer satisfaction

25. Fast Response Key Learning Points • Fast response process becomes part of the culture, and not just another meeting • Process will not survive without management support at all levels of the organization • Fast response is about applying systematic tools to identify, monitor, and resolve issues before they become larger, or result in a customer complaint

26. Fast Response Process • Open Discussion / Questions?

27. TQMS FOUNDATIONfor EXCELLENCE

28. Lunch Please submit any questions you may have at the registration table using index cards provided