Phil Operation Review

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WELCOME to
DTS (Dual Training System) PARTNERSHIP
Philippines Operations
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About Lear Corporation

• Lear Corporation is one of the world's leading
  suppliers of automotive seating systems,
  electrical distribution systems and related
  electronic products.
• The company's world-class products are designed,
  engineered and manufactured by a diverse team of
  91,000 employees at 215 facilities in 35
  countries.
• Lear's headquarters are in Southfield, Michigan,
  and Lear is traded on the New York Stock Exchange
  under the symbol LEA.
• Further information about Lear is available on
  the Internet at http//www.lear.com.

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Location in the Philippines
THE PHILIPPINE MAP
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Facilities
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Customer
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Demographics Cebu Operations
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Lear Corporation A Partner in Environmental
Protection Awareness
OUTSTANDING ENVIRONMENTAL PERFORMANCE AWARD IN
2007
Category 1 Grp B. Other Industry (Large)

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Lear Corporation A Socially Responsible Company
2007 SSS BALIKAT NG BAYAN AWARD TOP EMPLOYER
(Central Visayas Cluster)

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Lear Corporation Employer of Choice
PEZA
OUTSTANDING EMPLOYER
AWARD
2006

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Lear Corporation Employer of Choice
Top 2
Taxpayer Award
2006
Given by the City Government of Lapu-lapu Awarded
by Mayor Arturo Radaza

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Lear Corporation Employer of Choice
Top 2
Taxpayer Award
2007
Given by the City Government of Lapu-lapu Awarded
by Mayor Arturo Radaza

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Major Plant Awards
Lear - Employer of Choice
An award winning company
1996 Recipient of the Healthiest and Safest
Workplace Award 1998 Recipient of the Outstanding
Healthy Workplace Award By Former Pres.
Joseph Estrada 2005 Recipient of the Top Ten
Outstanding Cleaner Practices in the Region
Award 2005 Outstanding Employer of the Year 2006
Employer of the Year Award/2005 PEZA Outstanding
Employer Award By President of the
Philippines, Mrs. Gloria Macapagal-Arroyo 2006
2nd Highest Taxpayer in Lapu-Lapu City
Award 2007 2nd Highest Taxpayer in Lapu-Lapu
City Award 2007 Recipient of the Outstanding
Environmental Performer Award 2007 Chosen as 2007
SSS National Balikat ng Bayan Awardee Top
Employer 2007 Recipient of 2007 National Best
DTS (Dual Training System) Partnership Program
Award from TESDA
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Lear Corporation CITE DTS Partnership
DTS (Dual Training System) PARTNERSHIP

• Facts
• Memorandum of Agreement entered in May 27, 2005
• Training Developmental Programs improved over
  time
• 1,127 Trainees (36 female, 64 male) benefited
  the DTS Partnership as of 2007, while 388
  Trainees (51 female, 49 male) were absorbed and
  consequently regularized with Lear
• In 2008, 1,722 Trainees (35 female, 65 male)
  are on-board with DTS Partnership

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Demographics Lear CITE DTS Partnership
34.4
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Training Process Flow _at_ Lear
80 passing Rate 100 MQ
PASSED
GENERAL ORIENTATION (1 day)
JOB PREPARATION (6 days)
ON-THE-JOB TRAINING (Buddy-buddy with a
certified operator for 12 days)
SPECIAL TRAINING PROGRAM (Project-based) (2-5
days)
1. Manufacturing - Pre-blocking - Wire
stringing - Convolute Attachment
- Taping - Clip Attachment 2. Quality -
Internal Workstation Standards 3. Work
Instructions 4. Blue Print Interpretation 5.
Abnormality Identification Note Training is
done inside laboratory room.

• 1. Company
• Overview
• - History
• - Vision/Mission
• Statement
• - Policies and Procedure
• - Benefits
• 2. ISO 14001/TS 16949
• 3. Support Group Functions
• 4. EHS Orientation
• 5. Six Sigma

1. Blue Print Interpretation 2. Advance Quality
Planning - Discussion of previous
quality issues 3. Potential Failure Mode
and Effects Analysis (per operation) 4.
Control Plan (per operation)
MQ- Mandatory Questions
FAILED
For Final Assembly Operators
Removal Exam
Hands-On Examination (actual on-line)
FAILED (2x)
PASSED
FAILED (3x)
END OF CONTRACT
WRITTEN AND HANDS-ON EXAMINATION WILL BE GIVEN AT
THE END OF THE SESSION TO MEASURE
EFFECTIVENESS OF TRAINING
Phase 1
Requirements for New Operators
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Training Process Flow Multi Skilled Operators _at_
Lear
Cutting
80 passing rate
PASSED
CERTIFIED OPERATOR
SKILL CERTIFICATION (multi-skills)
PASSED
For Other Operations
CERTIFIED
FAILED

• - Cutting
• - Splicing
• - Line Inspection
• - E-test
• - Packing
• - Molding
• - Wire Twisting
• - Foil Taping
• Manual Termination
• Soldering
• - Other support (QA, MH)
• Note - 2 weeks

Removal Exam
PASSED
FAILED (2x)
Splicing
FAILED (3x)
WRITTEN AND HANDS-ON EXAMINATION WILL BE GIVEN AT
THE END OF THE SESSION TO MEASURE
EFFECTIVENESS OF TRAINING
Revert Back to old position/ transfer to other
position where he is certified
Splice Covering
Requirements for other positions for
certification
Phase 2
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Other Incentives for Trainees

• Basic Meal Allowance/Subsidy
• Overtime Meal Allowance/Subsidy
• Basic Allowance (85 of minimum wage
• coursed through CITE)
• Overtime Allowance
• Company Recreation and Outing
• Companywide Christmas Party
• Family Day
• Beach Party
• Medical and Dental Attention
• Free Medical Consultation
• Free First Aid Medicine
• Free Dental Consultation
• Christmas Gift

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Criteria for Trainee Evaluation and Absorption

• COMPETENT rating (at least) based on Lears
  standard on Performance Appraisal, covering the
  following factors
• Work Attitude
• EHS Procedure Compliance
• Productivity
• Quality
• Attendance
• Cooperation and Teamwork
• Job Flexibility and Knowledge
• Company Rules and Regulation Compliance
• Verified to have no problems with attendance or
  not having any disciplinary action
• Completed and passed all the school (CITE)
  requirements, both academic non-academic
• Compliance to the Pre-employment Requirements
• Acceptance of the Absorption Offer

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Lear Corporation An Active Partner in Youth
Development
BEST DTS (Dual Training System) PARTNERSHIP
AWARDEE IN 2007

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TAIWAN AMBASSADORs BENCHMARKING VISIT TO LEAR

• Last May 24, 2008
• Hon. Pan Shih-Wei and Party visited Lear
  Corporation-Philippines together with the TESDA
  and CITE Directors and Administrators

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DTS Advantages to Lear

• Supports Operational Flexibility
• Better Qualification/Competence of Workforce
• Recruitment Advantage
• Sharing Opportunity

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THANK YOU VERY MUCH!!!