FORD_SRDE_2018

28 Production We focus on innovation in our production processes. We closely follow Industry 4.0 and invest in technology and by doing so we achieve increased capacity along with efficient production. At Ford Otosan, we have the goal to achieve higher quality and safe production processes with low environmental impact and minimum error level thanks to our Smart Factories. Our goal is to continuously increase quality and efficiency in the production processes during digitalisation through our transition period to have robots that work with humans side by side, virtual reality and wearable technologies. The lean production approach that we have adopted enables higher quality production with less time and energy and with qualified personnel. Thus, we are always able to fulfil the expectations of our customers. We get a significant competitive advantage through this approach in the sector. Thanks to the lean line layout and production system installations we have efficiently realised as part of the Ford Production Systems (FPS) implementations, we achieved a significant level of increase in efficiency; and our production capacity has been raised to 455,000 pcs. as from 2018. We maintained our position as the largest production centre of Ford in Europe while realising exportation worth of TRY 27,303 million with our investments towards meeting the increasing export demand. We were chosen as the best factory in 2018 following the audit of FPS Europe, as we also did in the previous year. We have the goal to become the best in class with our technological investments and smart factory implementations. We collect data related to our processes by making use of over a thousand robots and tens of thousands of sensors as part of the Machine Information System (MIS) Project launched in 2017. We perform maintenance plans, malfunction predictions and predictive maintenances based on the data we have gathered from our analyses with the project we implemented in our body production and paint shop. Thus, we are able to track changes even at a level of milliseconds in the production process and produce more vehicles with the same equipment. At the same time, we reduce maintenance costs and enable maximum efficiency in production. The aforementioned project was also awarded with a support of TRY 2 million in 2018 by the Directorate of Technology and Innovation Support Programs. SUSTAINABLE AND PROFITABLE GROWTH Our factories were chosen as the best in class once again following the audits conducted by Ford Europe FPS office. The lean production approach that we have adopted enables higher quality production with less time and energy and with qualified personnel. Packaging Testing Center

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