Borg Warner at 2012 New Delhi Auto Expo

Inside Out:

Inside

Out:

DivgiWarner

Pune,INDIA

ISSUE 29APR 2012

CULTIVATING THE Spirit of Innovation

The Magic of Merlin

Advantage - AUTOmatically EXPOnential

A Brand With A Grand Stand

DivgiWarner Meets General Motors

Divgi-Warner…An Alloy Invincible

Auditor’s Choice

Tangles to Circles

I want to put a ding in the Universe

… Steve Jobs

raises the maturity level of innovative thinking and doing.

universe of the automotive industry.

Best wishes for 2012

Jitendra Divgi Managing Director

It’s great to be back in the New Year to report on new achievements and happenings in DivgiWarner. The 2012 Auto Expo in New Delhi showcased the irrepressible energy and enthusiasm of the Indian Automotive Industry. It is evolving into an industry like no other in the world. In no other part of the world do you have American, European, Indian, Chinese, Korean, and Japanese brands vying with each other and carving out their distinctive niches. The Great Indian Automotive Bazaar has opened for business and like the proverbial Hindu pantheon has a great multitude of models – from the diminutive Tata Nano to the magisterial and monumental Rolls Royce with everything thrown in between. This globalization of India’s automotive industry and its diverse supply base has driven the commoditization of a great many components. Quality and productivity practices are now par for the course. What will distinguish leaders from followers will be innovation to find the next product feature or the advanced process that will give value to the customer and consumer. Finding superior solutions to the challenges of modern society, packaging them in distinctive product offerings that customers are willing to pay for, and then being able to do this continually will require a high organizational bandwidth for innovation. Being able to put together a set of management practices that the organization can diligently practice, and gradually build a culture and ethos of creativity can provide a decisive winning edge in a very crowded marketplace with bountiful opportunities and lots of blind alleys.

The natural emphasis on defect-free quality by automotive OEMs has led to practices that drive standardization and the relentless reduction of variances and variation. While some may infer that this drives out the faculty of thinking differently and from first principles, what is overlooked is the point that along with standardization there is also the drive for continual improvement. By focussing on making continual improvements in the entire value chain along the lines of the Japanese concept of kaizen, or small incremental improvements done continually, a tangible start can be made to creating a culture of innovativeness and original thinking. What is then required are the necessary inputs to drive the creation of an ecosystem in the organization that continually

At DivgiWarner, we are discovering the power of our BorgWarner Production System tools to make the graduation to the next level of maturity of our capability to drive innovativeness and creativity. Our commitment to our fundamental quality, environment and talent management system is an essential prerequisite in this initiative. We are learning that to make innovation a way of life it has to be everybody’s job in our organization. By providing (a) the space for critical questioning; (b) education and training to become more penetrating observers and trenchant analysts for more effective, root-cause problem solving and continuous learning; (c) external and internal opportunities for networking and benchmarking; and (d) resources to experiment with ideas; we believe it is possible, with continual and intense practice over time, to build a creative company. This will involve generating unique insights that are the basis for product and market development that also provide the leverage and force multiplication of synergy in their impact on business. This, to paraphrase Steve Jobs, is the way to put our very own unique ‘ding’ in the

CULTIVATING THE Spirit of Innovation

TiMESInnovation the spirit of innovation

Merlin is another robust rear wheel drive product from Tata Motors, which will create a storm in the world of SUVs.

The Magic of Merlin

DivgiWarner followed the 5 phase APQP process with reviews at the exit of each gate while executing this program. The cross functional team that worked on this program was drawn from all related functions, which has a good working experience and knowledge of similar successful programs. The result is demonstrated in developing the prototypes within a short time.

Merlin is an upgraded version of the existing, popular Safari model, built on the X2 platform, hydroform frame, which gives greater rigidity and strength.

The power too has been upgraded to 400 Nm. and with upgraded interior. The exterior has been inspired from Jaguar and Land Rover.This vehicle is offered 4X2 and 4X4 and with5-speed manual transmission. Introduction of automatic transmission is also expected in the near future.

An electrically actuated front axle disconnect system is used in this vehicle to engage or disengage front wheels from the driveline to minimize the parasitic losses. The manual transmission G76 Mark II offered on this vehicle has DivgiWarner Synchronizers. Further, to enhance its off road capability Tata relied on DivgiWarner’s time tested electrically controlled shift-on-fly 4X4 system, commonly known as transfer case.

LH Drop transfer case development was essential due to packaging space availability under the tunnel while migrating from Euro IV to Euro V. DivgiWarner has developed left hand drop (LH) transfer case for this program based on Aria TOD (45-57) configuration (Construction). The drop angle is the standard 40° as on all other Tata applications. DivgiWarner has developed a cover casting for this application retaining most of the common parts with RH ESOF. Transfer Case Electronic Control Unit is modified to facilitate functioning of front axle disconnect system.

Avinash KurdekarEngineering

TiMESInnovation the spirit of innovation

Safari Storme

Synchronizer System

BorgWarner showcased their products range, which was represented by its five divisions at the Auto Expo 2012.

1. DivgiWarner, a JV with BorgWarner TTS, 2. BW Morse Tec, 3. BW Emission Systems4. BW Thermal Systems5. Turbo Energy Limited (JV with BW Turbo)

This year DivgiWarner showcased TTS products and technology including NexTrac and Haldex couplings.

Advantage - AUTOmatically EXPOnential Ashwin M.Koppikar Commercials

The 11th Edition of Auto Expo was held at Pragati Maidan, New Delhi from 5th January 2012 to 11th January 2012. The formal inauguration happened on 6th January and the event was open to general public from 7th January to 11th January, 2012. The largest automotive show in India saw around 1500 participants from 23 countries.The Auto Expo is an automotive show held in New Delhi, India. It is Asia's largest and the world's second-largest motor show, organized jointly by the Automotive Component Manufacturers Association (ACMA), Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers (SIAM).

A View of BorgWarner Stall

This year’s Auto Expo was the biggest ever in terms of vehicle launches. There were 58 new product launches, nine fresh concepts and 12 green vehicles. For the first time Ferrari and Peugeot showcased their line-up for India. Auto Expo plays a crucial role for India because the Indian auto industry is a major driver of economic growth. It provides the opportunity to interact, learn, and share knowhow with the brains behind the Indian Auto Industry. A unique feature about the expo is the “Asli-Nakli Show”, where consumers get awareness of the importance of genuine auto parts for after-sales service applications.

Display of DivgiWarner products at AutoExpo

DivgiWarner Team with Mr.David Prakash of M&M BorgWarner Team with Mr.Pawan Goenka of M&M

TiMESInnovation the spirit of innovation

The main highlights of the 11th Edition of Auto Expo was the Tata‘s long-awaited new Safari Storme , It has taken a leap ahead with features like shift-on-the-fly four-wheel drive and Velvet Shift Feel Transmission.

Efforts taken by DivgiWarner Sales and Advance Business team in coordination with all other departments of the organization, helped to make this show successful.

The mark of a good brand is when…-It clearly delivers the message.-It builds your credibility.-It connects your target prospects emotionally.-It motivates the buyer.

DivgiWarner as a brand is unique and distinctive. It stands for distinctive products & superior quality. It is a world class Indian brand for Automotive Drivetrain Systems & Components. It generates credibility & confidence in the Indian & Overseas customers.

‘‘ IT IS REMARKABLE WHEN PEOPLE USE YOUR BRAND AS A VERB. ’’

After more than a decade of dedication & involvement on Quality System Basics, Management systems has yielded quality, commitment and innovativeness. As a result, creating world class products has become a way of life for the DivgiWarner team.

TEAM means Together Everyone Achieves More & that is truly living ‘‘ The Spirit of Innovation ’’

Advantage - AUTOmatically EXPOnential

TiMESInnovation the spirit of innovation

Mr. Ratan Tata and Mr. Cyrus Mistry

Mr. Anand Mahindra and Mr. Pawan Goenka

A Brand With A Grand StandLalit P.More

Mfg.Engineering

DivgiWarner Meets General MotorsSachin S.Shah

Mfg.Engineering

DW has developed and established a process to achieve the above close tolerances within specified limits. DW also demonstrated process capability on significant parameters as per customer requirement. General Motors is scheduled to launch the Orlando in India as well in mid 2012.

DivgiWarner bagged a business award from BW TTS Korea to manufacture and supply Input Flange for the Chevrolet Orlando, a front wheel drive based, all wheel drive vehicle. This Flange is assembled on BorgWarner’s Nextrac 100 coupler at BW TTS facility at Ochang, Korea. General Motors build these vehicles at Kunsan, Korea; Antwerp, Belgium and Ramos Arizpe, Mexico. BW STA, Mr. Justin Koo from Korea, visited DW to audit and

witness PPAP.

Program Kickoff: Dec., 2010

PPAP / PSW Approval: 31st May, 2011

Start of Production: January, 2012

Key Features:•This flange has coating on a selective area, which calls for salt spray test of 400 hrs. This is achieved by CED Coating process.•This flange also has a very thin wall design.

Following are the Critical Parameters:-•Counter bore.•Tap hole position.•Imbalance requirement.

Chevrolet Orlando.

Formation Day Celebrations of DivgiWarner recalls the spirited unification of Divgi Metalwares andBorgWarner and raises everyone’s morale. 17th January 2012 was a day of celebration all over DivgiWarner. On 17th January 1995, 17 years ago, an agreement was signed between Divgi Metalwares Pvt. Ltd., Pune and BorgWarner Automotive South Asia Corporation of USA in Pune…and Borg Warner Group brought over 100 years of Product Innovation in Drivetrain Technology The agreement was signed by then President of BorgWarner South Asia Corporation, Mr. Fred Kovalik, on behalf of BorgWarner, and Mr. Jitendra B. Divgi on behalf of Divgi Metalwares Private Limited.

Memorable photographs of the signing ceremony were displayed in the company premises, where all employees gathered to celebrate this significant day. Mr. Jitendra Divgi, Managing Director addressed the group and reminisced a few anecdotes of the Formation Day followed by some remarkable events of the business journey since then.

TiMESInnovation the spirit of innovation

Memories Display

Flange Assembly

Flange

DW Group While Celebration

DivgiWarner…An Alloy InvincibleP. P. Thankanchan

HR and admin.

TS-16949 First Continuous Assessment by UL DQS showed Zero Nonconformance at Sirsi and Bhosari plants.

The leading certification body UL MSS conducted the first continuous assessment of DivgiWarner’s Quality Management System at Bhosari & Sirsi plant in Jan 2012. The auditors were Mr. Ragvendra and Sumant Kulkarni.

The objective of this audit was to evaluate the Quality Management System (QMS) implementation and its compliance with the Customer Specific Requirements and adherence to internal policies & procedure. The UL MSS group assessed the QMS on the basis of the Plan-Do-Check-Act (PDCA) cycle.

Auditor’s Choice

Vijay J. WaradeQuality Systems

The Evaluation summary is as below

Plan

•The quality manual is found to be inline with the requirements of ISO/TS 16949:2009.Do

•Divgi Warner follows the standard Advanced Product Quality Planning (APQP) approach for product development. Check

•Indicators are monitored. Internal audits are planned and they are distributed over the entire calendar year.Act

•Continual efforts are going on in every department to improve products, services and processes. The emphasis of these efforts is on incremental and continuous steps.

The auditors emphasized the importance of continual improvement and found the following strengths of the company particularly outstanding.

1. Top Management Commitments.2. Good HR Initiatives in terms of Total Employee Involvement.3. Good Maturity of QMS in line with implementation of Borg Warner Production System & responding to the Customer Voice. 4. They also specially appreciated the Lean Video, Operator Licensing & Defect tracking sheet. Overall, the audit highlighted the maturity of the QMS implementation in DivgiWarner and was found to be a satisfying indication of the TS16949 principles successfully adopted by the company.

UL-SMS

TiMESInnovation the spirit of innovation

Mr. Ragvendra, auditor UL India at DW Shop floor

Mr. Sumant Kulkarni, auditor UL India at DW Stores

Audit Highlights – Zero Nonconformance reported at Bhosari and Sirsi plants.

A recent development initiative by the senior management truly promises to bring better focus onto self-realization, self-enhancement and team building.

What you hear, you forget What you see, you remember What you do, you learn.

DivgiWarner has taken “People First” as one of the key strategic initiatives as part of the road map for Organization Growth and Development. Gallup survey was conducted throughout the organization to get insight into the perception and motivation of employees. Based on the findings from the survey, action plans were drawn and some initiatives were taken up by HR and Senior Management.

As a part of this initiative, an offsite residential program was organized for the Senior Management team in the month of Jan 2012. This was an action learning program facilitated by Mr. Arvind Chittewale who is also conducting the leadership development program for the 40 budding DW leaders responsible for various functions. This program included communication, feedback, team building and appreciation of the different roles that leaders can play in the work place. Photograph Language and Johari Window were a few of the basic concepts and techniques that were used to bring about powerful learning, insight, reflections and observations.

Exercises, games and activities were not just packed with fun and energy but were also modes of self revelation and realization.

To understand the impact of this program, here is one feedback from one of the participants Mr. Prasanna Deshpande - Head Engineering of DW. “It was quite an unforgettable learning experience. The program included powerful exercises where we shared our perceptions about ourselves and how our personalities got chiseled through life experiences. This also made us realize how we communicate and relate to each other”.

Tangles to Circles Alka S. JoshiConsulting Head-HR and admin

This is an in-house newsletter meant for internal circulation only.For additional information visit www.divgi-warner.com Pune,INDIA

DivgiWarner

TiMESInnovation the spirit of innovation

Tangles to Circles : Game DivgiWarner Management Team