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CHRYSLER GROUP LLC Commercials 1 Launch Commercials from this Slide Order of Commercials 1. Jeep Whole Again 2. Dodge How to Test for Fun 3. Ram Got Away 4. Fiat Immigrants 5. Chrysler - Motown

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CHRYSLER GROUP LLCCommercials

1

Launch Commercials from this Slide

Order of Commercials

1. Jeep – Whole Again

2. Dodge – How to Test for Fun

3. Ram – Got Away

4. Fiat – Immigrants

5. Chrysler - Motown

SKILLED TRADES RATIONALIZATION

2

Fred Castelvetere

Senior Manager – Skilled Trades

Administration & Rationalization

CHRYSLER GROUP LLCMay 2009 Bankruptcy Negotiations

3

• In May 2009, as a result of the Bankruptcy, the LSA Agreement with the U.S. Government

consolidated the Trades into two (2) classifications:

Approximately 1,500 employees will be consolidated into the Electrical Tech.

Approximately 2,750 employees will be consolidated into the Mechanical Tech.

• Powerhouse, Wastewater Treatment and Jitney Repair classifications remain as

stand alone classifications.

• The two (2) classifications will assume the scope of work of the eliminated classifications

and training will be developed accordingly.

• Until employees are trained, layoff and recall will be by the current classification structure

after which the two (2) core classifications will be considered distinct stand alone

classifications for all seniority purposes.

CHRYSLER GROUP LLC

Rationalization Operational Impact

4

• Trades consolidation provides for the

elimination of the lines of demarcation

between classifications.

• The LSA requires the consolidation of the

trades.

• The new Technicians receive the highest

rate of pay in the group at each location.

• To successfully merge trades classifications

and realize efficiencies of operations,

appropriate levels of training must be

developed and implemented.

The goal of the initiative is to

increase flexibility and

efficiency, improve mean time

to repair & uptime and reduce

costs through the creation of

world class professional

maintenance technicians.

CHRYSLER GROUP LLCTechnical Training – Migration Steps

Mechanical

Technician

Final Structure

Floor

Trades

Migration Step

Shop

Trades

Migration Step

Millwright

Machine Repair

Pipefitter

Tool Maker

Die Maker

Current State

Mech

an

ical T

ech

nic

ian

MillwrightCarpenter

Carpenter / PainterPainter / Glazier

Sheet MetalWelder Maintenance

Crane OperatorRepair - Furnace

PipefitterPipefitter-Spray Gun

Machine Repair

Repair –Mech. Handling

Tool MakerTM-Jig & Fixture

Tool/Fixture/Mach Rep.Inspector – Form Cutter,

Gauge, Layout & Sample,

Layout – inspector, Metal

& Wood

TM-Tool & Gauge Insp.Cutter Grind

Welder – Tool & Die

Die MakerKeller Mach OperatorCNC Machining TechGrinder (Stamping)Mach Op. Tool/Die

(Stamp)Repair Mech. HandlingPattern Maker Wood

Die Cast

Rep . Pneumatic Tools

Mach Op. Tool/Die

CHRYSLER GROUP LLC

Challenge – Cultural Change 50 + Years of History

6

Challenge is to transform the Company and employees to operate

differently

Create a World Class Competitive Operating Model

Provide credibility to the U.A.W. that the Company is serious after several

false starts

Take the Message to the Employees

20 U.S. Locations

65 Townhalls on 3 shifts

CHRYSLER GROUP LLC

Roadmap to Implement Rationalization

7

Search the Internet to benchmark other companies that reduced Skilled Trade

classifications by combining or “Rationalizing” the Classifications.

Discovered no company attempted this with 4,200 employees at 20 locations

American Axle with about 40 Skilled Trade employees at 1 plant

Discovered Two Companies that could potentially assist in attaining our Goal

ToolingU and another Company that recommended ToolingU

Visited ToolingU’s office in Cleveland Ohio

ToolingU Selected as Training Partner

CHRYSLER GROUP LLCThe ToolingU–SME Advantage

8

Entered into a Partnership with ToolingU – October 2010

Developed the Key Elements of Training

Workshops identified Learning Objectives

Developed Assessment Tests

Provided access to on line Training Classes

Created a Training Database and computer support

Integrated the Database with our LMS

Developed Multiple Reports

Flexibility to Incorporate numerous changes

SME Acquisition provided additional technical training resources

along with local proximity

CHRYSLER GROUP LLCTraining Development Process

9

Step 1: Conduct Workshop

Workshops conducted to get all pertinent information from UAW-Chrysler Subject Matter

Experts (SMEs)

Step 2: Establish Learning Objectives

The information gathered at each workshop leads directly to the development of a list of

specific learning objectives for each topic covered

Step 3: Develop Assessment Test Questions

Each learning objective leads directly to a list of questions

Each Assessment question is –

Tied directly to a learning objective

Tied directly to specific training

ToolingU Online Courses

TTC Courses

On the Job Training (OJT)

Step 4: Competency Training Maps

The training maps will come directly from the results of the assessments

For example, if an individual scores a zero on an assessment, that individual will have to

complete the maximum amount of training for that assessed area

If an individual gets some percentage of the question correct, the training required will be less

than the maximum training

If the individual gets 100% on an assessment, no training will be required for that individual on the

assessed area

All incorrect answers will map directly to the specific training required

CHRYSLER GROUP LLCWorkshop Schedule

10

Skilled Trades RationalizationWorkshop 1 Workshop 2 Workshop 3 Workshop 4

25-Aug Basic Plumbing (M) Filtration Systems (M) PLC -- Troublsht / Repair (E)

26-Aug Hydraulic Systems (M) Servo Positioning Sys. ('E) Power Distribution ('E)

27-Aug Pneumatic Sys & Comps (M) Leak Detection (M) Robot Vision Systems ('E)

21-Sep Predictive Maintenance (M) Sheet Metal Fabrication (M) Safety Systems ('E) Destckrs, Shuttle, Drives ('E)

22-Sep Basic Welding (M) Mobile Cranes (M) Weld Gun Set-up (E) Moog Controller/Valves ('E)

23-Sep Basic Carpentry / Dock Repair (M) Material Handling/Trans. (M) Weld Program/Trblsht ('E) Motion Controllers ('E)

5-Oct Small Machine Shop Equipment (M) Machine Component Alignment (M) Logix (PLCs) (E)Hydraulic Presses Operation

& Troubleshoot (E)

6-Oct Grinding Machines (M) Painting (M) - Mike's Room Tool Changes / Grippers (E) CNC Machines (E)

7-Oct Automation Tooling (M) Equipment Install/ Remove/Transport

(M)

Hydraulic, Pneumatic, Mechanical

Repair (E)

Assembly Closure

Lines/Hemmer Operations (E)

19-OctLubrication (M) Assemble/Dis. Dies (M)

Air Conditioning Fundamentals

(M/E)

20-Oct Spindle Rebuild/Repair (M) Robot Tblsht / Program (E) Brazing, Soldering, Cutting (M)

21-Oct Die Theory and Maint. (M) Presses (M) Clamp Adj. and Replace (E)

CHRYSLER GROUP LLCCritical Skills

11

Mechanical Tech

General Skill SetSpecifics

Centrifugal pump and air valve trouble shooting and repair. Both High and Low Pressures. Associated

brakes, flow controls, fittings for example.

Knowledge of air motors and systems for liquid dispensing systems (loctite, RTV). Repairing sealer and

adhesive guns/dispensing systems.

Plant specific dispensing systems.

Troubleshoot, repair & rebuild machine hydraulics, pumps, valves and fluid power as well as knowing Hyd.

Symbols.

Troubleshoot & repair accumulators (high pressure nitrogen), and lubrication systems.

Compressed air fittings - Connect/disconnect hydraulic and compressed air fittings

Welding Safety

Metallurgy, Know the difference in metals, what happens to them when welded and what metals can and

cannot be used.

Use of welding torches and cutting equipment. Knowledge in oxyacetylene gas cutting, soldering, plasma,

tac and brazing, basics of gases.

Intermediate Level Specialty

Mig Welding

S Tig Welding

S High Pressure & Structural

Advance Level Specialty

P Arc welding (tig) Brazing Soldering

A High Pressure & Structural

Pneumatic Systems and Components

Basic Welding

CHRYSLER GROUP LLCCritical Skills

12

Priority for Die makers & Shop Trades on Grinders.

Priority for Die makers & Shop Trades on Shapers.

Priority for Die makers & Shop Trades on Radial Drills

Priority for Die makers & Shop Trades on Lathe

Priority for Die makers & Shop Trades on Bridgeport.

Priority for Die makers & Shop Trades on Small Mills,

Intermediate Level Specialty

Floor Trades on Shapers.

Floor Trades on Radial Drills

Floor Trades on Lathe

Floor Trades on Bridgeport.

Floor Trades on Small Mills,

Advance Level Specialty

CNC Training and EDM (Electrical Discharge Machining) Training

Royal Tool setting equipment & Software.

Speroni Tool Pre-setter and Shrinker

Primary, Secondary and Tertiary, Rake Angles, Helical Flutes. Shanks, Centers,

Knowledge of Tool Management & Kan-ban systems.

Briney shrink teardown machines. Coating Machine.

Understanding use of indicators for precision set-up.

Understanding of grinding wheel types and dressing. Cylindrical, surface, internal, face and hand grinding.

Cutting - off Grinding. Machines - Cylindrical / Internal Grinder - Manual and Automatic, Surface Grinders -

Manual and Automatic, Universal Tool and Cutter Grinders - Manual, Relief Grinders - Manua

Understanding of speeds and feeds for metal grinding operation.

Understanding of magnetic chuck operations & blocking

Miscellaneous Grinding Operations, Machines (CNC Tool Grinders) and Fabricate cutters. Support Grinding

operations for grinding of broaches and drill bits.

Sharpening High-Speed Steel, Powdered Metal, Cobalt and Carbide Tools. Assemble, set and deliver round

shank tools and mills

Direction of Wheel Rotation, Relief Angles, Width of land, Producing the Relief Angle, Setting per Type of

Wheel, Set Up per Type of Cutter. Sharpening Carbide Tools -- Grinding Rules. Procedure in Grinding

Typical Tools, Ordinary Dull Tools, Chipped

Operation of Small Machine Shop Equipment

Operation of Grinding Machines

CHRYSLER GROUP LLCLearning Objectives - PLC

13

Identify basic Windows functions.

Identify the components of a PLC.

Distinguish between fixed PLC and modular PLC.

Describe PLC inputs and outputs.

Identify parts of the Human Machine Interface (HMI).

Distinguish between different PLC modes.

Identify the status lights on the CPU.

Distinguish between analog and digital technology.

Distinguish between data types.

Identify the components of a PLC network.

Distinguish between different PLC network configurations.

Distinguish between Boolean logic commands.

Distinguish between different PLC numbering systems and codes.

Describe an electronic data sheet (EDS).

Identify where to get the EDS file.

Define a PLC register.

Distinguish between different program control instructions.

Describe the I/O image table.

Describe how an Allen Bradley PLC scan works.

Identify the prefixes for timers and counters.

Describe an overflow.

Recognize an Allen Bradley fault code.

Identify where to get manuals & troubleshooting guides from the manufacturer.

Distinguish between downloading and uploading to a PLC.

Explain the significance of the "yellow triangle."

CHRYSLER GROUP LLCSkills Objectives - PLC

14

Demonstrate how to search a PLC program.

Demonstrate how to force I/Os.

Demonstrate how to swap out hardware.

Demonstrate how to create/modify a PLC program without damaging or

losing data.

Demonstrate how to find/connect to the right PLC.

Identify the LED status lights on the CPU

CHRYSLER GROUP LLCExample of Assessment Questions

15

Which statement is true about Ethernet networks?

1. Devices on the network compete with each other for network access.

2. Ethernet networks require an RS-232 interface in order for devices on the network to communicate.

3. Data transmission rates are limited to 10 megabytes per second.

4. Ethernet networks use distributive control rather than relying on a central controller.

ToolingU Class: (450270) - Networking for PLCs 270

Which statement about ControlLogix is true? ControlLogix:

1. Can be used as a control system and a gateway.

2. Can be used only on PLC networks with fixed I/Os.

3. Is not compatible with PLCs from other manufacturers.

4. Provides unlimited bandwidth for PLC networks.

TTC Course: (BAT175) - Allen Bradley ControlLogix Processor Family Using RSLogix 5000 Software

CHRYSLER GROUP LLCExample of Assessment Question

16

Consider the control cabinet shown in the image. Which device on the cabinet would you use to manually move the robot?

1. Teach pendant

2. Robot stop

3. Axis control

4. End effector

ToolingU Class: (470120) - Robot Components 120

CHRYSLER GROUP LLC2011 Negotiations with U.A.W.

17

Manufacturing Bargaining Objectives

Employee Safety – Highest Priority

All Trades Rationalized and “Through the Door”

No Lines of Demarcation within the Work Groups

Multi-Dimensional Training Assessments used as a guide

• ToolingU – On Line training

• TTC – Hands On Training

• OJT - Team Based

Filtered Training

WCM Principles – Radar Charts

Training Prioritized based on employee skill level and plant requirements

CHRYSLER GROUP LLCDirectional Change

18

2011 Negotiations

We must continue to integrate the skills and abilities of the workforce

through cross functional assignments to achieve the fullest potential of

this initiative

Recognized the need for a Cultural Transformation

UAW Recognition that to work more efficiently could result in

insourcing maintenance / project work

Reduce complexity of training by adding Tool & Die Workgroup

Goal is to maximize capability / flexibility of skilled workforce

Streamline Training Process

CHRYSLER GROUP LLCHow Do We Implement Change?

19

OJT

Training

TTC

Training

On-Line

Training

Traditional Trade ClassificationsAll Become One

Tech Class at Beginning

Training Follows

ST

R

Co

nc

ep

t a

t

En

tra

nc

e

OJT and Machine-Based

Training

Bu

rst

Ap

pro

ac

h:

ST

R a

t E

xit

OJT

Training

On-Line

Training

TTC

Training

Prioritize Employees

for Training Based

on Highest Skills and

Willingness Levels

Targeted EE Virtual

Timeline

Sc

att

er

Ap

pro

ach

:

ST

R a

t E

xit

S T R Thru the Door

ST

R C

on

ce

pt

at

En

tra

nc

e

OJT and Machine-Based

Training• Traditional Trade Classifications All Become One Tech Group at Beginning – Training Follows

TIMELINESeptember

2014

CHRYSLER GROUP LLCTechnical Training – Migration Steps

21

Final Structure

Base

Mechanical

Trades

Tool & Die

Trades

Migration Step

Millwright

Machine Repair

Pipefitter

Tool Maker

Die Maker

Current State

Me

ch

an

ica

l Te

ch

nic

ian

MillwrightCarpenter

Carpenter / PainterPainter / Glazier

Sheet MetalWelder Maintenance

Crane OperatorRepair - Furnace

PipefitterPipefitter-Spray Gun

Machine Repair

Repair –Mech. Handling

Tool MakerTM-Jig & Fixture

Tool/Fixture/Mach Rep.Inspector – Form Cutter,

Gauge, Layout & Sample,

Layout – inspector, Metal

& Wood

TM-Tool & Gauge Insp.Cutter Grind

Welder – Tool & Die

Die Maker

Keller Mach OperatorCNC Machining Tech

Grinder (Stamping)

Mach Op. Tool/Die

(Stamp)

Repair Mech. Handling

Pattern Maker WoodDie Cast

Rep . Pneumatic Tools

Mach Op. Tool/Die

Mechanical / Tool & Die TechniciansTo

ol

& D

ieTe

ch

nic

ian

CHRYSLER GROUP LLC

Electrical Technician

Classification

Mechanical Technician Classification Tool & Die Technician ClassificationMillwright Pipefitter Machine Repair

Electrician Millwright Pipefitter Machine Repair Tool Maker

Repairer Welder Equipment

Millwright / Welder Pipefitter – Plumber Tool Maker - Jig & Fixture Builder

Sheet Metal WorkerPipefitter / Spray

Gun RepairDie Maker

Welder Maintenance Die Maker - Die Cast

Eliminated / Protected Classification Alignment With Distinct and Stand Alone Classification

Recording

Instrument Maint.

& Repair

Carpenter / Painter

Repairer -

Portable

Pneumatic Tools

Tool / Fixture / Machine Repair Tech

Layout Metal

& Wood

Carpenter Grinder - CutterTool Maker - Tool

& Gauge

Inspection

Painter & Glazier

MaintenanceCutter Grinder

Grinder - Tool

Room

Repairer

Furnace Tool & Cutter

GrinderMachine Operator -Tool, Die & Maint.

Mechanic -

Trailer RepairKeller Machine

OperatorLayout Inspector

Brickmason &

Cement FinisherCNC Machining

TechnicianInspector Layout &

Sample Check

Crane Operator -

Locomotive

Pattern Maker -Wood

Saw-Do-All Tool Room Only

Pattern Repairer -Foundry Patterns

Inspector Form Cutters

Welder - Tool &

Die

Inspector Gauge Surveillance

Classification Status

Note: The alignment of the eliminated classification with the distinct and stand alone trade may very based upon plant

operations

CHRYSLER GROUP LLCEliminated Classifications

• Layout Metal & Wood

• Tool Maker - Tool & Gauge Inspection

• Grinder - Tool Room

• Machine Operator - Tool, Die & Maint.

• Layout Inspector

• Inspector Layout & Sample Check

• Saw-Do-All Tool Room Only

• Brickmason & Cement Finisher

• Crane Operator - Locomotive

• Repairer - Portable Pneumatic Tools

• Recording Instrument Maint. & Repair

• Pattern Maker - Wood

• Pattern Repairer - Foundry Patterns

• Carpenter / Painter

• Carpenter

• Painter & Glazier Maintenance

• Inspector Form Cutters

• Inspector Gauge Surveillance

• Tool / Fixture / Machine Repair Tech

• Grinder - Cutter

• Cutter Grinder

• Tool & Cutter Grinder

• Keller Machine Operator

• CNC Machining Technician

• Welder - Tool & Die

• Repairer Furnace

• Mechanic - Trailer Repair

10/21/201323

27 Total

CHRYSLER GROUP LLC

Skill Set Competency Level

Existing cross

functional skills

High Value

Incidental /

General Work

Next Phase

Skill Set

High Value/Flexibility

Existing / Trainable

Knowledge

Specialized Skills & Equipment

Minimal value from

training to this level

Pipefitter Millwright Machine RepairFor Example

CHRYSLER GROUP LLC

25

“WCM is designed to make our plants flexible and competitive with

the best in the world, at the same time it's also intended to put dignity

into the workplace” - Sergio Marchionne, CEO, Chrysler Group LLC

CHRYSLER GROUP LLC

• WCM Principles provide the engine to implement the

Skilled Trades

Rationalization initiatives

• Utilize People Development (PD) methodologies for

radar chart planning & detail

• Each individual will be assessed using the following radar chart

scale, following WCM teachings:

Level 1 General awareness, minimal or no knowledge

Level 2 Has had training, has not fully demonstrated application competency

Level 3 Able to apply, may need help

Level 4 Able to apply well and assist others

Level 5 Able to apply well and can teach others

WCM ConnectionWorld Class Manufacturing Methodology

CHRYSLER GROUP LLC

• ToolingU-SME Database will create initial radar charts and populate

a Level 1 in each competency category

• To reach Level 2, must have Knowledge, Completed some On Line

and TTC Courses and performed some OJT

• Only the facility, based on demonstrated competencies and/ or

training completion levels may increase an employee to a level 3 or

beyond

World Class Manufacturingont’d)

CHRYSLER GROUP LLCToolingU-SME Main Menu Screen

28

CHRYSLER GROUP LLC

ToolingU-SME – Executive Summary

29

CHRYSLER GROUP LLCToolingU-SME Employee Data

30

CHRYSLER GROUP LLCToolingU-SME Employee Data

31

CHRYSLER GROUP LLCToolingU-SME Employee Data

32

CHRYSLER GROUP LLCToolingU-SME Employee Data

33

CHRYSLER GROUP LLC

OJT Data Entries

Refresh |

Work Process Entry Date Hours Initial Level

1. Plumbing Essentials 5/3/2013 8.00 1 3 3 Approved by Ronnie

Owens on 5/5/2013

2. Repair valves, cylinders and pumps 3/12/2013 9.00 1 3 3 Approved by Ronnie

Owens on 3/13/2013

3. Repair valves, cylinders and pumps 9/18/2012 9.00 1 2 3 Approved by Ronnie

Owens on 10/02/2012

4. Installation/maintenance of process piping, steam & hot water systems

9/20/2012 8.00 1 3 3

Approved by Ronnie Owens on 12/4/2012

5. Plumbing Essentials 9/19/2012 8.00 1 2 3 Approved by Ronnie

Owens on 09/20/2012

6. Repair valves, cylinders and pumps 9/18/2012 9.00 1 3 3 Approved by Ronnie

Owens on 09/20/2012

7.

Fabricate, install, repair and rebuild

pulleys, conveyors, material

handling and automation systems

1/2/2012 500.00 4 4 4

Approved by Ronnie Owens on 09/20/2012

8. Dismantling, moving and erecting machinery and equipment

1/2/2012 500.00 4 4 4 Approved by Ronnie

Owens on 07/20/2013

9. Welding Essentials 1/2/2001 500.00 4 5 5 Approved by Ronnie

Owens on 02/12/2012

Required

Level

Current

Level

CHRYSLER GROUP LLC

- Sheetmetal Fabrication, Layout & Installation- Welding Essentials- Dismantling, moving and erecting machinery and equipment- Floor Layout and installation of machinery and equipment- Furnace Repair-

- Installation of electric motors/spindles and equipment- Repair valves, cylinders and pumps- Plumbing Essentials- Hydraulics-

- Refrigeration- Machine Operations - Lathes, Milling Machines and Grinders

Skilled Trades On the Job Training

Mechanical

Technician

Fabricate, install, repair and rebuild pulleys, conveyors, material

handling and automation systems

Installation/maintenance of process piping, steam & hot water

On The Job Training (OJT)

CHRYSLER GROUP LLCOn The Job Training (OJT)

-

-

- Primary Power Distribution-

- Die Set Up and Tryout

- Die Essentials

- Machine Operations & Bench

- Line Maintenance, Service, Repair and Troubleshooting

- Use of gauges and tools for measurement and layout

Tool & Die

Technician

Electrical Construction, Maintenance, Troubleshooting and Repair

Skilled Trades On the Job Training

Install, Tryout, Maintenance and Troubleshooting of welding and

related mechanical handling equipment

Setup, Tryout, Maintenance, Repair and Troubleshooting of

production equipment and related components

Electrical

Technician

CHRYSLER GROUP LLC

On-the-Job Training | WARREN TRUCK ASSEMBLY PLANT I

OJT Bar Chart OJT Pie Chart

Label Work Process Type Hours

Process B Welding Essentials Mechanical 22610.00

Process C Dismantling, moving and erecting machinery and equipment Mechanical 20047.00

Process F Fabricate, install, repair and rebuild pulleys, conveyors, material handling and automation systems

Mechanical 19047.00

Process H Repair valves, cylinders and pumps Mechanical 24060.00

Process I Plumbing Essentials Mechanical 26531.00

Process K Installation/maintenance of process piping, steam & hot water systems Mechanical 25530.00

Total Hours:

137825.00

S T R Thru the Door

ST

R C

on

ce

pt

at

En

tra

nc

e

OJT and Machine-Based

Training• Traditional Trade Classifications All Become One Tech Group at Beginning – Training Follows

TIMELINESeptember

2014

CHRYSLER GROUP LLC

• Credit past experience

• Partnering up

• Employees tracks their own OJT

• World Class Manufacturing (WCM) focus on Training

• OJT opportunities

- Project work

- New equipment training

- Work Teams

- Cross functional assignments

“Thru the Door””

CHRYSLER GROUP LLCTTD Validation Process

40

CHRYSLER GROUP LLC

STR Status Update August 31, 2013

41

CHRYSLER GROUP LLC

• Revamped Reporting Site

- New features and tools to help Chrysler / UAW National Parties, the TTC, and LTTC’s to manage STR towards the objectives outlined today

- Included: filtered training plans, OJT tools, and additional charts and data

- Separate session roll-out for LTTC’s and other admin users

- Greater flexibility for Reporting Purposes

CHRYSLER GROUP LLCA Successful Partnership

43

CHRYSLER GROUP LLC

44

CHRYSLER GROUP LLC

45