Proud and Moving Forward

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Presented byRejeana Thompson,Environmental & Quality Management Systems SpecialistAichi Forge USA596 Triport RoadGeorgetown, KY 40324Direct phone: 502-570-5380Work Cell: 502-316-5984Email: Rejeana_Thompson@Aichiforge.com

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596 Triport RoadGeorgetown, KY 40324 USA

Division of Aichi Steel Corporation

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Aichi Forge Philippines （AFP）

Sales : 107 MillionEmployment : 354Product : Crank, Con-rod, Knuckle, Ring gear, A/T gear

鍛造拠点販売拠点

Overview Aichi Global Forge Shop

Shanghai Aichi (SAFC) Aichi Forge USA （AFU）Aichi Steel Forge Div.

Aichi Forging Indonesia (AFI)

Aichi Forge Thailand (AFT)Aichi Group Total (Forge) Yr 2016Sales : $ 926 Million

Employment : 2,295

Sales : 84 MillionEmployment : 319Product : Crank, Con-rod,

Knuckle, T/M gear

Sales : 578 MillionEmployment : 851Product : Crank, Ring gear,

T/M gear, Knuckle

Sales : 34 Million

Employment : 80Product : Inspection

Sales : 28 MillionEmployment :319Product : T/M gear, Propeller

Sales : 95 MillionEmployment : 354Product : Crank, Yoke, Shaft

110 USD/JPY 4

Shot cleaning & MPI

inspection

8000

T-A

8000

T-B

6000

T-C

6000

T-D

2500T-F

4000T-E

1600T-G（robot）

Die shop

KAF(JTEKT)

Maint.SinterForge

3000T-H（robot）

8000T-J（robot）

Cold coin.press

Line

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Line

1

Line

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Driven gear Large Knuckle

Shipping

3000T-K（robot）

Crankshaft Ball joint

KnuckleLarge Ring gear

Diff. Ring gear Drive Pinion Sinter Con-rod

Overview Plant Layout

Cut

ting

・Multiple Press Lines ranging from 1600T to 8000T; with 5 large presses of 6000T or larger. ・Sinter Forge Con-Rod presses were transferred directly from Toyota. 5

Our Customers…

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Kentucky has experienced various fluctuations in the job market over the past

several decadesProud and Moving Forward

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From Little to No Job AvailabilityThe Great Depression was the worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.

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To a large growth of job opportunities in Kentucky

Kentucky has been at the forefront of this positive trend. According to the National Association of Manufacturers, the industry accounted for 18.3 percent of Kentucky’s total economic output in 2014. Manufacturers employed 12.4 percent of Kentucky’s workforce. And since 2009, the manufacturing output in the state has risen nearly 70 percent.

The Automotive IndustryFord, Toyota and General Motors all have vehicle production facilities in Kentucky. Over the years, the companies have been invaluable to the overall growth of the state’s economy

UPSThe massive presence of UPS in Louisville has had an incredible impact on the state and its manufacturing industry. UPS employs over 20,000

AmazonIs another company new to Kentucky employing over 7,000

The Bourbon IndustryKentucky is internationally known for its bourbon. Kentucky produces nearly 95 percent of the bourbon in the world and has benefited significantly as a result.The Kentucky Distillers’ Association indicate employment has jumped 23% since 2010

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Kentucky has the jobs . . . but how do we keep our employees?

When it comes to employment, it’s a buyer’s market outthere. For the past few years, the relationship betweenemployers and employees has undergone a profoundshift, now resembling freelancing much more, andfocusing less of the latters’ time, energy and loyalty to thecompanies they work for. Indeed, senior executives haveto spend more time considering the strategies requirednot only to attract new staff, but also retain them.

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Get Your Team Members Involved The majority of all employees want to do a good job and

would like recognition for a job well done Employees can make or break the quality of your

products and/or services Employees want to be heard and be a part of the

company – including decision making in regards to how they do their job.

Treat everyone honestly and fairly

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Outside Sources & Impacts

The new ISO 9001:2015 and IATF 16949 (Quality & Automotive Standards) now has specify requirements in regards to employees’ work environment, motivation and empowerment

Each employer has their own philosophy in regards to employee training, retention andmotivation. However, there are new requirements from outside sources that may impactyour company’s operating standards

ISO 9001:2015 Quality Management System IATF 16949: 2015 Automotive Management System

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Proud and Moving Forward

Aichi Forge USA wants to be the forging company of choice. This can only be achieved with the help of our employees

• Communication: Aichi Forge has improved our communication level with our team members.

Employee SurveysConducted on an annual basis. It includes obtaining their feedback on: CommunicationTrainingWage & EvaluationsWork EnvironmentWork Schedule Since this was implemented –we have shown an increase in employee satisfaction

Round Table Meetings –monthly meetings where randomly chosen hourly team members can meet with the President, Vice President of Administration and HR Manager to discuss any topic. From there an action item list is created. The status of the action items are presented to the VP and President

Quarterly Team Member MeetingsMembers of upper management meet with all team members to review the current operating status of the company. This includes: Sales, Quality, Safety, New Product Development, any upcoming company events &/or visitors as well as Employee Recognition Awards

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Proud and Moving Forward

Aichi Forge USA wants to be the forging company of choice. This can only be achieved with the help of our employees

• Employee Recognition: Aichi Forge has implemented the following programs

Perfect Attendance AwardsTeam members receive a gift card for each month of perfect attendance

Years of Service AwardsTeam members receive recognition and various gifts based upon their years of service.This is based on every five years of service

5S AwardsMonthly and quarterly recognition of production departments for cleanliness and organization of their department. Team members receive candy, gift cards, a trophy to be displayed in their department.The quarterly award is presented by the President and will include a luncheon

Safety AwardsDepartment team members receive a free lunch or gift cards.

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Proud and Moving Forward

Aichi Forge USA wants to be the forging company of choice. This can only be achieved with the help of our employees

• Special Events for Employees: Here are just a few examples of the various special events Aichi Forge has provided our team members

Day at KY LegendsEach team member received a cookout and tickets for their families to attend a Kentucky Legends baseball game

Annual Open HouseTeam members can bring their family for a cook out, prizes, and tour of the facility

Annual Holiday MealsTeam members receive 4th of July cookout, and catered Thanksgiving and Christmas meals

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Aichi Forge USA wants to be the forging company of choice. This can only be achieved with the help of our employees

• Improvements to Employee Work Environment: Here are just a few examples of the various projects Aichi Forge has done for our team members

Improved Lighting – improved employee morale, improved visual inspection of product, and help reduce trip & fall incidents

Improved Ventilation – improved employee morale and helped reduce heat injuries.

Created Safe Walking Zones – allows individuals to walk freely without the risk of any forklift traffic

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Work Space Kaizen: Upgraded Lighting to LED

BEFORE

Orange lights resulted in a dark and dirty environment

Improved Visibility / Employee Morale

AFTER

Replaced lighting with LED bulbs

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Work Space Kaizen: Sky Lights & Windows

Installed sky lights (35 locations)NO ENERGY USAGE

Additional Lighting Projects

Capital Expense of $23,424

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Installed windows in north and south bay. Allows for natural light in production area. NO ENERGY USAGE

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• Safety - Improved visibility in plant• Improved lighting at product inspection areaso Less defective parts to customer

• Team member appreciation• Energy & cost saving

Result of Lighting Project

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Improved Ventilation

Step 1 – New billet Step 2 – 1st Press Step 3 – 2nd Press Step 4 – Exit chute

Each forging line works with steel that is heated to 2,2300 F.Aichi Forge USA has 10 forging lines.To reduce heat injuries and improve employee comfort Aichi Forge has implemented the following:

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Improved Ventilation

To reduce the ambient temperature throughout the facility we have installed multiple louvre devices

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Each forge team member has an individual free standing fan plus an individual air cooling device

Repaired / replaced and installed additional exhaust fans throughout the plant

Additional benefit of the new air flow ventilation unit, was additional natural light was able to enter the building

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Work Space Kaizen: Added Employee Safety Walk WaySafety Activity

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Team members can walk safely throughout the facility without fear of forklift traffic

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Now it is Up to YouThe management of Aichi Forge USA hopes that the examples we have shown you today, help provide ideas for you to take back to your company.If we can be of any assistance please feel free to contact us at your convenience.

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Proud and Moving Forward