IAC

1. IAC Customizing QAD for a Unique Manufacturing Process Prashant Arya | Director IT

2. Agenda 1 IAC Overview 2 Carpet Manufacturing Model 3 Process Mapping 4 Outsourcing Model 5 Lessons Learned

3. IAC Global Profile • $4+ Billion Global Annual Sales • Leading Supplier of Automotive Components & Systems • 73 manufacturing facilities in 15 countries - 28,000 Employees • Process capabilities include • Compression • Injection and Blow molding technologies • Various trimming and finishing methods

4. IAC’s Core Market Leadership Segments Doors & Trim Systems Instrument Panels, Consoles & Cockpits Flooring & Acoustic Systems Headliner & Overhead Systems Other Interior & Exterior Components • Doors Panels • Armrests • Decorative appliqués • Map pockets • Switch bezels • Speaker grills • Safety components • Instrument Panels • Cockpits • Center consoles • Hard & soft panels • Glove box assemblies • Air distribution products • Air registers • Decorative appliqués • Cup holder • Utility flooring • Floor Carpets • Floor mats • Acoustic insulators • Package trays • Trunk trim • Engine insulators • Wheel arch liners • Overhead systems • Headliner • substrates • Grab handles • Overhead consoles • Visors • Interior lighting • Safety systems • Interior • Cargo • Management • Load floors • Seat panels • Pillars • Exterior • Bumpers • Reservoir • Systems • Rocker • Panels • Exterior trim

5. Customers are Key

6. Business & IT Challenges

7. Carpet Process (Rolled Goods) Overview • IAC manufactures two types of carpets • Woven Carpet – These are manufactured from Yarn • Non-Woven Carpet – Manufactured from Synthetic Fiber • Cutting and slitting rolls with traceability to original parent roll • Manufacturing order allocation of assigned and unassigned rolls • Inventory availability by quality of roll across plants and warehouses • Bill of material, recipe formula and dye lot management • Details of each carpet produced needs to maintain throughout the manufacturing process as well as post shipment for many years

8. Carpet Process Workflow(Woven) • Dyeing • In Dyeing process tufted carpet rolls are sew-in together to make a continuous roll, which is then fed under rods that color the carpet. • There are other methods to dye the carpet. • Inspection • Inspection is the final process where each carpet is carefully inspected for color uniformity and manufacturing defects before it is rolled, wrapped and shipped. • Preparing the Yarn • Yarn arrives at carpet manufacturer plant in form tubes or cones • These tubes or cones further wound to manufacture cones or Beam sets. These cones or Beam sets are transported to the Tufting machine • Tufting • In tufting process carpet is manufactured on specialized multi-needle sewing machines. • Yarn is fed from the creel , one tube of yarn for each needle , and threaded through the needles. • A tufting machine can produce several hundred square yards of carpet per day. • Latex Coating / Shearing • In Latex Coating process, a coating of latex is applied to both the tufted, dyed carpets primary backing and secondary backing • Shearing is process of removing all of the little loose ends and projecting fibers that might have been created during the tufting process.

9. Woven Carpet Manufacturing Process • Assign Yarn to Creel • The Yarn Lot is assigned to Creel Location • Issue Yarn to Creel • Yarn is transferred to a creel location • Yarn • Cones or tubes of Yarn purchased • Shipment • Inspection • Final production & reporting program were quality checks are done • Greige Booking (Tufting) • Production & Reporting of Tufted carpets • SEW-IN • The WO(Dyed, Latex or Shearing) are scanned to create the inspection records. • WO Creation • WO is created for each process after this like Dyed WO, Latex WO & Shearing WO

10. Non-Woven Carpet Manufacturing Process

11. IAC Carpet Process - Challenges

12. Key Solution Architecture Challenges • Capturing of Detailed Information relevant to Quality and Production at every stage • High Degree of Complexity & varied processes in Inspection & Production Reporting • Approval Process for Lots & Dye Runs • Lack of Features in QAD to support Automobile Carpet Process

13. Masters – Process to QAD Mapping

14. Yarn – Process to QAD Mapping

15. Greige Booking - Process to QAD Mapping

16. Inspection - Process to QAD Mapping

17. Quality - Process Mapping to QAD

18. Implementation Approach OFFSHOREONSHORE MODEL Systems Analysis & Design Systems Proposal Business Analysis Review Requirements / Mapping Systems Development & launch • Detailed Analysis, design, technical specification for Custom Developments, extensions and Reporting Solution. • Approval from IAC business and IT teams for development • Understand system requirements with the support from IAC Business Team • Prepare system requirements of current applications and “to-be” • Submit the system requirements with high level mapping document. • Vendor Submits fixed bid proposal for analysis, design, development of System based on approved mapping. • IAC IT and business team reviews and approves the proposal. • Project kick-off • Develop extension as per approved technical specifications • Acceptance Testing • Deployment • Prepare launch plan along with IAC business and IT team • Review findings and fine tune. • Review system requirements / mapping with Business Team. • Finalize and obtain concurrence on the Solution Design / mapping. 4 Months 1 Month 2 Months - Plant 1 Month – India / US 10 Months Design Approval by IAC IT / Business Business / IT commitment for the project Approval from IAC IT and Business Team Acceptance Testing by IAC IT / Business Team Participation from IAC Team

19. Development - Iterative Methodology Requirements Requirements Requirements Requirements FS & TS creation/Approval FS & TS creation/Approval FS & TS creation/Approval FS & TS creation/Approval IterationBacklog Test & Fix Defects ITERATION ASSESSMENT ITERATION CODE FREEZE Code & Test Code & Test Code & Test Code & Test On-Site Team creates the Iteration Backlog Continuous Integration Up to 2 week Iteration 3-8 weeks

20. Team Structure

21. Lessons Learned