Integrated Policy Statement

Corporate

B. O. S. Business Operating System

Manual

Part A: Policy Statement

Patricia Ravanello - Management Systems

This printed document is an UNCONTROLLED COPY - Check B.O.S. to verify validity prior to use Date printed: 11/25/2008

Business Operating System Manual

Policy Statement

Source Element

Background

Document Purpose

The Policy Statement of ABC Group Inc. is established by the Management Team to reflect the company's commitment to satisfying the diverse requirements of customers employees, shareholders and the community, through the development and implementation of a Business Operating System which incorporates quality, environmental, safety, materials management and business objectives.

Document Scope

The Policy Statement is communicated and implemented throughout all operations of ABC Group Inc. and embodies Management's mandate to achieve:

1) compliance to respective standards and guidelines (ISO/TS 16949, ISO 14001 and MMOG ), regulatory and statutory legislation, and ABC Group Inc . Corporate -defined requirements.

2) customer satisfaction by compliance & fulfillment of customer requirements

3) employee empowerment, through the education and training of employees

4) continual improvement

5) the prevention of pollution

6) product safety

7) a safe and healthful work environment, with minimized risk to employees

8) satisfactory response to the needs of interested parties.

Level 1

Part AReferences

Patricia Ravanello Business Operating System Manual - Part A - Policy Statement, Revision: 1 Page: 2 of 6



Policy Statement

Level 1

Part A

ISO/TS 16949 Policy Statement Overview

With reference to ISO/TS 16949 Technical Specification requirements, this document ensures that:

18-9 ISO/TS 16949 4.2.1• The Business Operating System documentation includes a documented statement of quality policy.

60-62 ISO/TS 16949 5.1.b

• Senior Management provides evidence of its commitment to the development and implementation of the Business Operating System and continually improving its effectiveness by establishing the quality policy.

71 ISO/TS 16949 5.3 • Senior Management ensures that the quality policy:

72 ISO/TS 16949 5.3.a a) is appropriate to the purpose of the organization

73 ISO/TS 16949 5.3.bb) includes a commitment to comply with the requirements and continually improve the effectiveness of the Business Operating System.

74 ISO/TS 16949 5.3.c c) provides a framework for establishing and reviewing quality objectives

75 ISO/TS 16949 5.3.d d) is communicated and understood within the organization, and

76 ISO/TS 16949 5.3.e e) is reviewed for continuing suitability

79-80 ISO/TS 16949 5.4.1• Senior Management ensures that the quality objectives are measurable and consistent with the quality policy (ref.: SOP-0003 Business Planning and Management Review)

81-82 ISO/TS 16949 5.4.1.1• Senior Management defines quality objectives and measures that are included in the businesss plan and used to deploy the quality policy (Rec-0003 Business Plan).

109 ISO/TS 16949 5.6

• Senior Management reviews opportunites for improvement and the need for changes to the Business Operating System, including the quality policy and quality objectives (ref.: SOP-0003 Business Planning and Management Review).

179 ISO/TS 16949 6.4.1

• Product safety and means to minimize potential risks to employees are addressed by the quality policy and practices, especially in the design and development process and in manufacturing process activities.

660 ISO/TS 16949 8.5

• We continually improve the effectiveness of the Businesss Operating System through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review (ref.: SOP-0005 Corrective & Preventive Action and Continual Improvement).




Policy Statement

Level 1

Part A

Policy Statement Overview (continued)

ISO 14001 With reference to ISO 14001 Standard requirements, this document ensures that:

5 ISO 14001 4.2 • Senior Management defines our environmental policy and ensures that within the defined scope of our Business Operating System, the environmental policy is:

6 ISO 14001 4.2.aa) appropriate to the nature, scale and environmental impacts of our activities, products and services

7 ISO 14001 4.2.b b) includes a commitment to continual improvement and the prevention of pollution,

8 ISO 14001 4.2.c

c) includes a commitment to comply with applicable legal requirements and with other requiremets to which the organization subscribes which relate to its environmental aspects

9 ISO 14001 4.2.d d) provides the framework for setting and reviewing environmental objectives and targets

10 ISO 14001 4.2.e e) is documented, implemented and maintained

11 ISO 14001 4.2.f f) is communicated to all persons working for or on behalf of the organization, and

12 ISO 14001 4.2.g g) is available to the public.

27 ISO 14001 4.3.3

• objectives and targets are measurable, where practicable, and consistent with the environmental policy, including the commitments to prevention of pllution, to compliance wiht applicable legal requirements and with other requirements to which the organization subscribes, and to continual improvement.

59 ISO 14001 4.4.4 • the Business Operating System includes the environmental policy, objectives and targets.

122 ISO 14001 4.6

• Management reviews include assessing opportunities for improvement and the need for changes to the Business Operating System, including the environmental policy and environmental objectives and targets.

133 ISO 14001 4.6

• the outputs from management review include any decisions and actions related to possible changes to environmental policy, objectives, targets and other elements of the Business Operating System, consistent with the commitment to continual improvement.




Policy Statement

Level 1

Part A

Policy Statement Overview (continued)

MMOGWith reference to MMOG (Global Materials Management Operation Guidelines) requirements, this document ensures that:

82 MMOG 1.1• ABC Inc. has a strategy that ensures that the Materials Planning and Logistics vision is achieved.

12 MMOG 1.1 (1) • a documented vision exists for the Materials Planning and Logistics functions.

14 MMOG 1.1 (2)• a documented strategy exists with activities for implementing the Materials Planning and Logistics vision.

16 MMOG 1.1 (3)• the Materials Planning and Logistics vision and strategy is linked to the company's overall objectives, including customer requiremetns and continual improvement.

18 MMOG 1.1 (4)• the Materials Planning and logistics vision and strategy is communicated and understood within the organization.


Policy StatementABC Group Inc., and its affiliates

are committed to an operating philosophy based on openness in communications, integrity in serving our customers,

fairness and concern for our employees and responsibility to the communities & environment within which we operate.

Our vision is to be the leader in producing automotive interior widgets and mechanisms

that are competitively-priced while meeting or exceeding customer expectations for quality, safety, materials, cost, delivery and value.

Additionally, we are dedicated to creating a profitable business culture that is based on the following principles:

CUSTOMER

Customer needs are paramount and represent the highest priority within our business. Our obligation is to proactively seek out and define customer needs while addressing all requests expeditiously without creating false expectations.

COMMUNITY AND THE ENVIRONMENTABC is committed to supporting the communities within which we operate and where we live. We believe in the practice of social responsibility and encourage similar behavior in our employees. We support conservation of the physical environment and the prevention of pollution in and surrounding our plant locations and proactively comply with all the applicable safety, environmental, legal and regulatory requirements to which we subscribe. ABC is also committed to equality in employment opportunity and rewards, embracing wholeheartedly the cultural diversity within the communities we call home.

PEOPLEPeople form the fundamental fabric through which our business realizes its objectives. Our employees’ welfare and interests are foremost throughout all aspects of our business and how we conduct our affairs. ABC is committed to:

· creating and nurturing an environment of success based on honesty and integrity,· equitable sharing in the success of the company, · empowerment through training and communication, · individual growth and equal opportunity,· designing and providing a safe and secure work environment.

QUALITYBeginning with a clear definition of customer expectations, we strive to consistently meet or exceed them. We adhere to all applicable standards and customer-specific requirements and endeavor to build a system and business that is robust and world class.

BUSINESS PROCESSOur key processes are documented in our Business Operating System, wherein we affirm our commitment and demonstrate our compliance to ISO/TS-16949, ISO 14001, MMOG Standards and Specifications, all customer-specific requirements, and all applicable legal and regulatory requirements. Our core business process is defined in and implemented through the Product Realization Process, which ensures the methodical and controlled achievement of customer specifications.

We establish and employ metrics that are used to measure our performance against business objectives in operational parameters, safety, quality, the environment, materials management, and customer satisfaction. We continually improve our effectiveness and efficiency through the deployment of this Policy Statement, the monitoring of objectives, audits, analysis of data, management review and the implementation of corrective and preventive actions.

The Management TeamABC Group Inc.

Business Operating System Manual, PartA: Policy Statement, Revision: 1, April 1, 2006

Documents

Integrated Policy Statement