LINC Logistics LLC - Corporate Office Issue: Version 3.1 Procedures Manual SUBJECT: Section 1.0 BUSINESS CONTROL Date: March 13, 2013

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1 1.4 OPERATIONS DEVELOPMENT SCOPE This procedure describes how the company: Develops new or amends existing operational processes. Arranges for adequate resources for a launch. The Operations Project team will direct this. Coordinates setting up all necessary contractor agreements. This constitutes the evaluation and approval mechanism for a new supplier. Completes all pre-launch and on-the-day activities. The Launch Team Leader or Project Manager will direct this. Controls all post-launch activity. The Launch Team Leader or Project Manager will direct this. Notifies Customers and field Operations of weather-related situations that may endanger execution of Operating Plans. Controls it s network of field Operations by using and monitoring Operating Plans and other related data/reports (i.e. Lane Exhibits, Outbound Matrices, Resourcing, etc.). RESPONSIBILITY The Senior Vice President of Operations and the Directors of Operations are responsible for ensuring that there is sufficient & adequately trained resources (i.e. staff) to complete these actions. It is the responsibility of all those involved in the operations team to demonstrate a working knowledge of this procedure. Questions on this procedure should be raised with the Senior Vice President of Operations or respective Director of Operations. MEASUREMENTS It is expected that the following elements can be measured: % of projects requiring operational processing are evidenced to a source document % of projects requiring operational processing, including launch activity, are updated in the PTS and a master Project file % of operational processing will be verified with zero failures to meet scheduled target dates. PROCEDURE See flow charts below. Note: Example copies of the forms described below are held on-line at Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 1 of 8

2 Process Modeling For each project defined in the detailed Project plan (timeline): Determine process Review process requirements to determine if it is a new, amended or standard process Visit related site(s) Observe tasks while in operation Arrange for site visit with appropriate personnel to discuss & observe the tasks (or elements) while in operation, where possible Document activities Forward to respective Director of Operations Test processes Draft activities by sequence, decision points & options; Identify necessary tools & equipment and incorporate into flowchart format, with supporting text where appropriate Note: All new processes will be prepared & published in the manner defined above. Established processes may remain in their textbased format if there is no change or if only minor changes are required. This will be at the discretion of the respective Director of Operations, typically where development timescales are short and the process are well understood with the company. "Double check" and test processes that are seen as complex or dependent upon another aspect of the design Publish in final format Distribute Update PTS File To the Project Manager (if different), the Business Development & Systems department, the Plant(s) and Customer when required The Project Manager, through the support of the Administrative Assistant (Sr. VP of Ops), is responsible for ensuring the Project Tracking System (PTS) is updated, where necessary. See WI-07 File a copy to the master Project file, marking any previous copies as superceded Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 2 of 8

3 R e s o u rc in g N o te s R e v ie w p ro c e s s e s D e te rm in e d th ro u g h m o d e lin g (s e e flo w c h a rt o n p a g e 2 ), th e C o n tra c t & p e rfo rm a n c e le v e ls Id e n tify & d o c u m e n t s ta ffin g re q u ire m e n ts In c lu d e s k ill le v e ls, n u m b e r o f e a c h s k ill ty p e a n d h o u rs o f w o rk & s h ifts Id e n tify & d o c u m e n t e q u ip m e n t re q u ire m e n ts In c lu d e e q u ip m e n t ty p e a n d q u a n titie s F o rw a rd d e ta ils Id e n tify & d o c u m e n t tra in in g re q u ire m e n ts In c lu d e S u p e rv is o rs n e c e s s a ry fo r n e w a n d /o r a m e n d e d p ro c e s s, s ta ff w ith in e a c h p ro c e s s a re a, flo w c h a rts /o p e ra tio n s m a n u a ls /s a fe ty ite m s a n d s p e c ify n e c e s s a ry re g u la to ry /c e rtific a tio n re q u ire m e n ts ; s e e P M P e rs o n n e l & T ra in in g O p e ra tio n a l P ro je c t te a m re v ie w s a ll d e ta ils "F a c ility " P ro je c t te a m m e m b e r (i.e. O p e ra tio n s P h a s e M a n a g e r) o r c o o rd in a to r w ith in a n a p p ro p ria te A p p ro v e d S u p p lie r (s e e C o n tra c to r A g re e m e n ts flo w c h a rt o n P a g e 4 ) re v ie w s S e t u p S u p e rv is o r T ra in in g E n s u re th a t th e y u n d e rs ta n d th e p ro c e s s, a re c a p a b le o f p o lic in g a n d e n fo rc in g it a n d th e y h a v e a ll o f th e n e c e s s a ry to o ls fo r tra in in g (s e e a ls o P M P e rs o n n e l & T ra in in g ) O n c e c o m p le te d P ro c e e d to C o n tra c t L a u n c h G o to flo w c h a rt o n P a g e 5 Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 3 of 8

4 Labor: Contractor Agreements Review draft labor requirements Prepare requirements Identify any deadlines Determined through "resourcing", detailed above on page 3 Prepare in a format, and within a sufficient timeframe, as dictated by the detailed Project Plan and the Labor department Forward details to V.P. of Industrial Relations Vice President of Industrial Relations contols and completes all recruitment activities Monitor progression Recruit staff within required time-scales Note: It is key that these activities allow sufficient time for any training Services This covers the setting up of Pre-Approved and external suppliers: Review detailed Project Plan To identify all required services External suppier Submit "bid" to suitable suppliers Review responses Pre-Approved Supplier Nominated person prepares & forwards service requirements to suitable suppliers for bid responseservices Select at least 3 to submit for evaluation Submit "top 3" respondents to designated reviewer Management finalizes selection of a supplier Arrange for the signing of a Contract Secure Contract Note: Preparation and sign-off of the Contract will be directed by the designated reviewer but may require the services of other LINC departments File P5 Retain a copy of the Contract & file in Master Contract file, with the Manager, Program Costing Go to Page 5 Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 4 of 8

5 Transportation: Contractor Agreem ents (continued) All transportation is bid out and this covers situations where LINC is responsible for the setting up of these contracts: P4 Review Project Plan Submit requirements to suitable affiliates The com pany will try to secure transportation through Pre-Approved suplliers, where possible From Page 4 To identify all required transportation from details Prepare and forward transportation requirements to suitable affiliates Review responses with Plant and/or Customer to identify service provision capabilities Determine suitable providers Determine suitable "mix & match" of providers to meet overall transportation requirem ents Lane Exhibits - applies to GM Only: Select supplier(s) Secure Contract File Review Operating Plan to identify all required lanes Submit bid invites to suitable carriers Review responses to determine service provision capabilities Forward copies of the Lane Exhibit to the CEO for review & signature Forward both copies to the carrier for signature & return Determine suitable "mix & match" of providers to meet Operating Plan requirements Note the selected carrier(s) Prepare documentation to secure Lane Exhibits File returned copy SPECIAL INSTRUCTIONS Chrysler & Ford directly contract all carriers following completion of a new or amended route build. They will advise the Logistics Analysis department of the carriers contracted to support each route. Modifications arising from a Customer Contract (i.e. lane change) or performance issue will be completed and controlled in the same way as the original set up of the various Contracts/lanes. All amendments will be suitably authorized and copies filed. Note: All activity described above coincides with Projects/Bid processing (see PM1.1-Bids & Contracts & PM1.2-Project Management) And arrange for securing Contract Note: Preparation & signoff of Contract will be coordinated by the nominated Project team member but may require the services of other LINC departments or levels of m anagem ent Retain copy of Contract & file in LINC Carrier Contract file Prepare & forward bid invites detailing the lane requirem ents Note: Carriers may already be contracted with LINC or Pre-Approved suppliers but it is acceptable to offer bid opportunities to other carriers Note: The GM Platform and Plant will direct the final selection of carriers Note: W here a carrier is not under Contract, this will also be completed at this stage as defined above Retain copy of Contract & file in LINC Carrier Contract file Note: It is key that these activities are completed in sufficient time to meet Launch date. New suppliers are subsequently added to the Approved Supplier List for the facility Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 5 of 8

6 Contract Launch Upon completion of key development, recruitment and/or training activities: The Project Manager or Launch Team Leader (if different) will direct this Determine "walkthrough" timing Arrange for "walkthrough" with facility management Ensure availability of participants Arrange for overall Project Management team or "Launch" team to be present Conduct walkthrough of each process To prove it will work in the sequence and manner that has been flowcharted and trained on Note: These have already been individually tested as part of Process Modeling - see Page 2 above Make necessary adjustments Adjust flowcharts, instructions and re-train staff where necessary At the completion of the Launch Sign-off and update PTS Note: Walkthroughs are recognized as key milestones in the evolution of Projects and must be signed off by the Project Manager at the completion of the Launch. These are minuted at formal Project review meetings, chaired by the Project Manager (CEO/VP or Director if necessary) and recorded in the Project Tracking System P7 Go to Page 7 for Launch Verification Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 6 of 8

7 Launch Verification Following the Launch, identified "Launch Team" members stay on-site and: P6 Oversee the operation of each process The Project Manager or Launch Team Leader (if different) will direct this From Page 6 - Contract Launch Provide on-site support Provide on-site "troubleshooting" support & advice Review measurement reports Ensure targets are being met Customer-driven and LINC measurement reports are analyzed to ensure Customer/LINC targets are being achieved For each problem that happens to arise Determine root cause & corrective actions Identify remedial actions and maintain full records of each issue within the Project file Make needed adjustments Adjust any processes, flowcharts, instructions and re-train staff, where necessary. Note: The route design is being proven at this point - see PM1.3 - Logistics Development - Routing See also Process Modeling on Page 2 and Resourcing on Page 3 Arrange for needed layout or equipment changes These activities will cycle as often as is necessary from the Launch date until the Launch Team Leader/Project Manager/Customer(s) are satisfied that the launch has been successful Formally acknowledge design validation End Formal acknowledgement ( ) confirm ing validation of the design process must be sent by the designated Launch Team Leader to the Corporate Office to be included in the master Project file to justify the decision of the Project Manager to close out the Project in the Project Tracking System See WI-07 Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 7 of 8

8 W eather reporting: Operational Support The Directors of Operations allocate designated staff to notify operating centers, particularly Dispatch operations, of adverse weather conditions, as well as advising the Customer of weather-related situations that may endanger the execution of an Operating Plan (see also procedure Contract Maintenance - Operating Plans): Contact field Managers for local weather conditions Key into database Via phone or broadcast message Enter weather conditions into Weather.mdb Any potential operationally threatening weather? Yes Notify related Director of Operations No Distribute Weather Reports to LINC recipients Distribute Weather Report to Customer recipients Designated staff responsible for processing reports have Customer & LINC contact lists for distribution purposes Field Monitoring: To control the network of Dock operations (CMC's, Decons), Dispatch operations and Warehouses (Sequencers, subassembly and CMA's), activities are driven through the use and monitoring of the Operating Plans and will include the monitoring of other related data (i.e. Lane Exhibits, Operations Reports, Resourcing and Outbound Matrices - see related procedures in section Business Control & section Communications - Corporate Reporting): Receive daily Operationsrelated field reports Weekly Daily, the field prepares Operations-specific reports (i.e. the Flash Report for DCX; Operations Report for GM) Print reports & review Determine if there are any issues requiring action Initiate immediate action and hold other issues Review the daily totals with the General Manager of Operations and Operations Managers Address at next planned visit to affected site(s) As needed: Review NCN activity and analysis reports Visit facility with Management team Minute meeting(s) Other visits will be made as seen necessary by the related General Manager of Operations NCN = Non-conformance - see PM4.1; review by department/facility & prepare activity analysis reports to review with Management Run required meetings to discuss such issues as the Operating Plans, Outbound Matrices, Lane Exhibits, error-proofing, performance measurements, Tier-2 performance, etc. To record discussions, actions, responsibilities & timelines Communicate with senior Management Complete any tasks/actions as directed by senior Management Note: Sufficient records should be kept of all significant activities or decisions to support/prove actions taken Process Owner: DB Sr. V.P. of Operations Approved: SW - CEO Page: 8 of 8

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