Copyright © 2016 Owens Corning. All Rights Reserved.

OWENS CORNING COMPOSITE SOLUTIONS

COMPANY & BUSINESS OVERVIEW

Andy Maclean Director – Global Quality & TPM

Composite Solutions Business

WHY CHOOSE OWENS CORNING? OWENS CORNING AT A GLANCE

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Founded in 1938 2015 sales: $5.4 billion 15,000 employees in 26 countries FORTUNE®500 company for 62 consecutive years Component of the Dow Jones Sustainability Index

Composites Roofing Insulation

THREE MARKET-LEADING BUSINESSES

COMPANY HIGHLIGHTS

1. Owens-Corning Fiberglas Corporation was founded on Oct. 31, 1938

2. Owens Corning and General Motors announced the first production automobile to be made entirely of Fiberglas™ -reinforced plastic, the Chevrolet Corvette, in 1953

3. In 1956, red dye was added to the binder in a new fiberglass wool, effectively introducing what would become Owens Corning’s renowned PINK® Fiberglas™ insulation

4. In the post-war years, Owens Corning expanded its product range to support the first Fiberglas™-reinforced plastic fishing rods, serving trays and pleasure boats

5. After a tragic fire claimed the lives of several astronauts, Beta® Fiberglas™ yarn became the standard for all Apollo program space suits

6. In 1975, Owens Corning was awarded the contract to make and install insulation for the 800-mile Trans-Alaska Pipeline

7. The Hajj airport terminal in Saudi Arabia is constructed with a 105-acre Fiberglas™ roof

8. The Pink Panther debuted as the corporate mascot for Owens Corning on Aug. 15, 1980

9. Owens Corning moved into its current world headquarters campus in 1996

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6 5 7

4

3

8

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1 2 CLOCKWISE FROM TOP LEFT:

A STRONG BUILDING MATERIALS BRAND

#1 Brand in Homeowner Awareness

Insulation: 72%

Roofing: 56%

Intellectual property with PINK brand and THE PINK PANTHER™

48% of homeowners associate Pink Panther™ with Owens Corning

Returned to national advertising August 2013

Source: Owens Corning Proprietary research, March 2013 and August 2014 4

BRAND PREFERENCE DRIVES PULL THROUGH

OUR ROOFING BUSINESS

Attractive industry with growth opportunities

High-performing product lines that benefit from vertical integration

Roofing components that enhance overall roof performance and deliver strong margins

Track record of strong financial performance

STRONG BUSINESS POSITIONED FOR GROWTH AS MARKET RETURNS TO HISTORICAL DEMAND LEVELS

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FIBERGLAS™ INSULATION

A product and market created by Owens Corning

Safe, proven, versatile and sustainable

For residential, commercial and industrial applications

EcoTouch® Fiberglas™ insulation – made with at least 50% recycled content, including at least 30% post-consumer recycled content

Manufactured in a dozen plants in the U.S. and Canada to provide customers with responsive service

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Applications

Processes

1932-1946 Start of the industry

OC introduces fiberglas

Commercial Boat Hulls

FRP Car Body (Stout Scarab)

CSM / CFM Process

Resin Systems Developed

Hand Lay-up Process

1947-1960 Niche Applications

Chopped Strands Process

Carbon Fibers Developed

Direct Roving Process

Spray-up Process

Pultrusion Process

Commercial FRP Car Body

Composite Panels (trucks)

Helicopter Blades (Alouette II)

1961-1978 Industrial Applications

Filament Winding Process

SMC Process

High-Strength Glass Process (S)

Kevlar® Fibers Developed

Glass Reinforced Thermoplastics

SMC Air Deflector

Glass Mat Reinforced Shingles

Commercial Wind Turbine Blades

1979-1996 Corrosion Resistance

Continuous Fiber Thermoplastic Laminates

Long-fiber Thermoplastics

Composite Storage Tanks

Fiberglass Windows

Hybrid Front-End Modules

1997-Present Hybrid Technology Integration

Hybrid Molding technologies

Commercial Wind Turbine

Commercial Aircraft

Structural Automotive Parts

Consumer electronics

APPLICATIONS AND PROCESSES

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0

1MM

2MM

3MM

4MM

5MM

Graph depicts glass fiber market demand, in kilotons Kevlar is a registered trademark of E. I. du Pont de Nemours and Company

OWENS CORNING’S COMPOSITE SOLUTIONS BUSINESS

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AMERICAS

Brazil Rio Claro (2)

Canada Guelph

Mexico Mexico City Tlaxcala

United States Aiken, SC Amarillo, TX Brunswick, ME Ft. Smith, AR Gastonia, NC Jackson, TN Starr, SC Wichita Falls, TX

EUROPE

Belgium Zele

France Chambery L’Ardoise

Italy Besana

Netherlands Apeldoorn

ASIA PACIFIC

China Changzhou Doudian Yuhang

India Taloja Thimmapur

Korea Kimchon

Russia Gous

Spain San Vicente

United Kingdom Liversedge

6,800 employees worldwide;

27 plants in 14 countries; 5 R&D centers

Fabrics Operations Non-Wovens Operations Other Glass Reinforcements Operations

WHY CHOOSE OWENS CORNING? OUR GLASS REINFORCEMENT PRODUCTS AND THEIR APPLICATIONS

CHOPPED STRAND MAT AND CONTINUOUS FILAMENT MAT

Marine, transportation, recreation, corrosion resistance, construction

Construction, industrial, automotive, road paving

NON WOVEN VEIL

Wind, pipe, thermoplastic composites, industrial, recreational

KNITTED OR WOVEN FABRICS

Construction (panels and translucent panels), corrosion resistant pipe and tanks, consumer (sanitary, recreational vehicles), transportation (headliner, body parts, semi-structural parts)

CONTINUOUS FIBER MULTI-END ROVING

Transportation, consumer electrical/ electronics and appliances

CHOPPED STRAND, DRY-USE

Building products (roofing and gypsum), industrial specialties

CHOPPED STRAND, WET-USE

Chemical and sewage, oil, water processing (pipe and tanks), industrial (high-pressure vessels, pultruded items), wind energy, aerospace, ballistics, transportation (muffler filling), electrical (optical cable)

CONTINUOUS FIBER TYPE 30® SINGLE END ROVING

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ADDRESSING ALL MARKET SEGMENTS AND NEEDS

© shutterstock.com; © iStock picture

INDUSTRIAL

TRANSPORTATION

WIND ENERGY

BUILDING & CONSTRUCTION

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OWENS CORNING SAFETY JOURNEY

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Copyright © 2016 Owens Corning. All Rights Reserved.

OWENS CORNING TPM

CREATING THE GLOBAL ROADMAP

Andy Maclean Director – Global TPM & Quality

Composite Solutions Business

TPM IS NOT: TOTALLY PAINTED MACHINES

MAINTENANCE “Maintaining or being maintained; keeping going; keeping in repair; supporting, without impairment”

PRODUCTIVE “The achievement of Zero Injuries, Zero defects and Zero Losses”

TOTAL “The Involvement of everyone in structured teams (Pillars) working to a common goal”

WHAT IS TPM?

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TPM APPROACH

By Establishing & Maintaining Optimal Conditions at all times, the process outputs become predictable and controllable. But this requires inputs and processes to be designed, implemented, operated and maintained in an optimal way:-

Process

Safety : Zero Injuries Quality : Zero Defects Cost : Zero Losses Delivery : Zero Losses

People : Materials : Equipment : Methods : Environment :

Optimal Outputs Optimal Inputs

The process should operate as intended, when intended, for as long as intended without unplanned interruption ...

KEY CONCEPTS OF TPM

System TPM is a system, not a set of tools

Overlapping teams of people working to a common goal

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Skills TPM is a skill improvement program

Pillars

Deterioration All things deteriorate either naturally or forced

Loss Chronic & Sporadic needs to be fully understood

Zero The goal is Zero Injuries, Zero Defects, Zero Losses

2012 : Start TPM EU & AP GRS

2016 Start TPM in ISB (Waxahachie)

<2010 : CI Lean

2010 Initial TPM Pilots in GRS NA

2012 : Start TPM in Tlaxcala

2014 : Start TPM in NW

2015 : JIPM Excellence Award Tlaxcala

2016 Start TPM in Fabrics

2016 Start TPM in R&A (Irving)

JIPM Assessment - Yuhang

JIPM Assessment - Taloja

Pilot Phase

Expansion Phase

Pilot Phase

“TPM will be the way we operate, maintain and improve

our operations”

THE OC TPM JOURNEY (SO FAR)

EXAMPLE: CHINA – AUTONOMOUS MAINTENANCE

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1. INITIAL CLEANING

2. ELIMINATE SOURCES OFCONTAMINATION, ETC.

3. CREATE & MAINTAIN INITIAL STANDARDS

4. GENERAL INSPECTION

5. AUTONOMOUS INSPECTION

6. STANDARDIZATION

7. AUTONOMOUS MANAGEMENT

All Processes Deteriorate Forced deterioration accelerates the onset of process of failure

CONTAMINATION DAMAGE VIBRATION

GOAL: Eliminate forced deterioration of process and equipment by engaging all

personnel in maintaining optimal conditions

Key Characteristics of Good Autonomous Maintenance

1) Tags – Increasing and being solved 2) Autonomous Teams (including maintenance) 3) AM Team Board (used by the team) 4) One-Point Lessons (regularly generated and

used) 5) Cleaning Time – Increases, then reduces

EXAMPLE: CHINA

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ZHU DENGFENG Batch House AM Trainer

“AM activity changed our mindset from, ‘I operate, you fix,’ to ‘I take care my machine.’”

“AM also improved our ability and critical eye, not only operate the machine correctly, but also to know how to maintain the machine and repair it; that is why 85% of leaks (have been) eliminated by us.”

Y2012 Y2013 Y2014 Y2015 Y2016 YTD Y2016Target

Product Unit Cost

0.28 0.30 0.30

0 0 0 0 0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Safety-Recordable Injure Rate Rate

TPM TANGIBLE ACHIEVEMENT EXAMPLE - CHINA

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NE% (Net Efficiency) %

Y2012 Y2013 Y2014 Y2015 Y2016YTD Y2016 Target

Nu

mb

er

Customer Complaint Number

The consistent TPM activity brought lots of qualitative benefits that cannot be

measured but can be felt throughout the plant.

Initiative Every employee in the organization realizes all the abnormities as

losses, report them through tagging process and always think how to improve as first response.

Mindset The change from the “quick fix” culture to “find & eradicate root cause”

culture.

Growth Build best practice sharing phenomenon within plant through One-Point- Lesson program; everybody can be instructor to grow himself.

Empower The feeling of self-empowerment in all levels of the organization.

Recognition The recognition of “people as our most valuable assets.”

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TPM INTANGIBLE ACHIEVEMENT EXAMPLE - YUHANG

IMPROVEMENT EXAMPLES

Before Current

INDIA

INDIA INDIA

INDIA

BRAZIL BRAZIL

IMPROVEMENT EXAMPLES

Before Current

TPM ROADMAP

Plant TPM Launch Model

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Prerequisites

Year 2 Year 3Year 1

Preparation Phase (3 months) Model Area Phase (6 months) Expansion Phase Year 1 Expansion Phase Year 2 Exp. Phase Year 3

Union

Engagement

Objectives

1 year3 year

X Matrix

Org. Review

for TPM

Regional Leader

TPM Awareness

Formal

Announcementto Plant Team

5S Training

and launch

Daily

ManagementObeya/Huddle

TPM Leader

Assigned

TPM Foundation

Training, all employees

Establish

SteeringCommittee

Plant Leader

TPM Awareness

Plant Leader

Role/Resp

NLT Pillar

Training

Pillar Leader

Selection

Pilot Area

Masterplan

Site TPM

Boot Camp (1)

Lessons

Learned

Losses Data

System Reviewand Action Plan

NLT 'Adopt a

Machine'

Readiness

Assessment (2)

Pilot Area

Selection

AM Pilot Area

PM Pilot Area

T&D Pilot Area

FI Pilot Area

T&D Pillar Launch

FI Pillar Launch

AM Pillar Launch

PM Pillar Launch

Readiness

Assessment (1)

TPM

Assessment

Pillar Teams

Selection

Plant

Masterplan

NLT Best

Practice Plant Visit

EM Pillar Launch

OE Pillar Launch

QM Pillar Launch

PM Pillar Launch

TPM

Assesssment

TPM

Assesssment

JIPM

Readiness Assesssment

Preparation

Pilot Phase

Expansion Phase

Management Declaration Establish Key Enablers (Daily Management) Organisation & Skills

Management Learning Machine Establish Pillars & Steering Demonstrate Step by step approach Establish results

Expansion of pillars Expansion across facility Ongoing Assessment of TPM

TPM GOVERNANCE

Global

TPM Leader

Global

Pillar

Leaders

AM

PIL

LA

R T

EA

MS

AM

PIL

LA

R T

EA

MS

AM

PIL

LA

R T

EA

MS

AM

PIL

LA

R T

EA

MS

AM

PIL

LA

R T

EA

MS

GL

OB

AL

LE

VE

LR

EG

ION

AL

LE

VE

LR

EG

ION

AL

PL

AN

T

LE

VE

L

Calls Face to Face

-Quarterly Telecon Once a Year

Roles and Responsibilities:

- Development Pillar Leaders

- Create Minimum Standards…Consolidate Master Plans

- Speed Implementation

- Benchmark Process & BPs

Calls

Monthly Video / Telecons Calls

-Face To Face: Once a Year

Roles and Responsibilities:

- Scorecard Management

- Master Plan Consolidation

- Cases / BPs (one a month)

- Academy Completion

- Recognition

- Next Steps

Proposed Meetings – Plant AM

Pillars

Minimum schedule: Monthly 2 hrs

Maximum schedule: Weekly 1 hr.

Once a month Gemba: Mandatory

Roles and Responsibilities:

- Area Master Plan

- Review KPI and KAI

Regional

Pillar

Leaders

Plant

Pillar

Teams

AREAS AND WORKING GROUPS

AM AM AM AM AM

AM PM FII T&D EHS QM EEM OFF

Methodology Spread out from the Pillar at the areas

Raul Matt

Williams

Luca

Riva

Mahesh

Rajamani

John

Calicott

Andy

Art Dennis Oscar Patty Geoff Tina Jeff TBD

Góes

Luiz

Eric Julian

Latam NA EuropeAsia

Pacific

Non-

WovenAM Pillar Leaders

In Plant

(for this Region)

AM Pillar Leaders

In Plant

(for this Region)

AM Pillar Leaders

In Plant

(for this Region)

AM Pillar Leaders

In Plant

(for this Region)

TPM GOVERNANCE

A new TPM Assessment has been developed to help our drive for Zero Accidents, Zero Defects, and Zero Breakdowns. The assessment is based on JIPM TPM Excellence and includes inputs from ISO and CQA. It has been calibrated with JIPM. An 60% Score would be equivalent to JIPM 1st Level.

Assessing will be done by the Quality and TPM working with each plant team. It is NOT intended to be a self assessment Assessments will typically be conducted during Q4

WHAT’S NEXT?

TPM Pilot Activities

TPM Expansion (Operations)

TPM Expansion (Enterprise)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Development Cost Deployment Methodology & Focus on Loss Expand TPM through Insulation Business Expand TPM through Roofing Business Develop TPM Academy

Pilots in Insulation Business Pilots in Roofing Business

Pilot Activities in Supply Chain / Sourcing Launch Cost Deployment Pillar Launch Supply Chain Pillar Launch Sourcing Pillar

WHAT HAVE WE LEARNED?

Sharing and adopting lessons will speed up and increase the success ratio

• The Plant Leader defines the success • Pilot must be visible and shows business impact.

Define the pilot based on loss tree • “I don’t need more external support. I know how to

implement TPM”. BE HUMBLE and curious. • FOLLOW AND TRUST THE METHODOLOGY. No short

cut. It is a proved methodology and long term commitment

• Step 2 is after step 1 !!!! . It is not rocket science but requires discipline.

• T means Total. • Only acquiring expertise does not guarantee success

(see bullet 1 – but it does help) • Engage the union from the beginning • Communicate, Communicate ….. TPM Newsletter.

Starting with the pilot. Don’t wait for full deployment.

• Pilot can not be “too big”. Intention is to be “focused and deep” in order to gain knowledge.

• Don’t go too fast from pilot to full deployment.

• “I will stop TPM for a while because I have a rebuild (or any other excuse)”.

• Everybody like FI (Focused Improvement), but without AM we will do FI to fix and correct things and not to improve.

• No Excuses - TPM isn’t extra to everything else – it is the way we will do everything else!

• TPM is the SYSTEM

Copyright © 2016 Owens Corning. All Rights Reserved.

Q&A

Andy Maclean Director – Global TPM & Quality

Composite Solutions Business