ISSUE 63 SUMMER 2008

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PRESIDENT’S LETTER SUMMER 2008

CONTENTS SUMMER 2008

One Small Step For shape, one giant step for shapers

contents

Tom DeVoursney Shape Corp. President

At some point, after all the planning, excitement, and adrenaline, John Glenn must have looked back and realized just how small the world as we know it really is. Contacts Shape Corp. World headquarters 1900 Hayes St. Grand Haven, MI 49417 616.846.8700 www.shape-corp.com

ROB WEYKAMP Vice President General Motors Business Unit [email protected] 616.850.3513

Dan Partenio Vice President Ford/Mazda Business Unit [email protected] 616.850.3514

GLOBAL Contacts

Jeff Piper Vice President International Business Unit [email protected] 616.844.3487

MICHAEL WANG China Sales Unit 24A No. 379 S. Pudong Rd. Shanghai, P.R. China, 200120 [email protected]

Jim Rosasco Vice President Diversified Business Unit [email protected] 616.844.3249

TOSHIYA MURASE Japan Sales Nishi-Shinjuku 5-24-16 Nishi-Shinjuku Well Building 7F Shinjuku, Tokyo 160-0023 [email protected]

Jack Russell Vice President Toyota Business Unit [email protected] 616.850.3644 Mike Smith Vice President Chrysler/Hyundai Business Unit [email protected] 616.844.3424

Rand Stille President of Shape-NetShape China [email protected]

HECTOR LOPEZ Mexico Sales Ave. Paseo DE Las Palmas 405-301 Lomas DE Chapultepec Distrito Federal C.P. 11000 [email protected]

As you read this issue of Shape on the Roll you will realize the global trajectory we are on. We certainly are not slowing down to reflect on our progress, but we recognize the team effort in firing up the rockets and calculating the glide path required to launch. I believe it is important to share the process used to identify and structure change. Through the strategic planning process, we realized we were not keeping up with our customers’ progress on a global basis. Our mission statement outlines our purpose and our value proposition for our customers, our associates, our suppliers, our shareholders, and our community. With this in mind, we were not achieving one of the core aspects of our mission: We will support our customers on a global basis.

flight accomplishments, there are many unsung heroes: the men and woman behind the scenes that continue to pitch in and make this giant step happen. The Shape team has lifted off, and I couldn’t ask for a better team to go on such a wonderful and exciting journey with. All systems go!!

Tom DeVoursney, President

Not a company to have statements we do not live up to, we evaluated our actions versus our mission statement and realized they were not congruent; we needed to step up. In true Shape fashion, the launch rocket fired up.

In true Shape fashion, the launch rocket fires up. I am truly proud of the progress we have made in the last few years. It is truly a team effort. Just like the Mercury and Apollo space

NASA photos

MARK WHITE Vice President of European Operations [email protected]

Cover: Yellow dots highlight approximate ShapeNetShape locations. For illustrative purposes only.

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International

toyota

Passion for Excellence Our business unit theme for 2008 is “Passion for Excellence.” Our passion for excellence begins when we quote a job and doesn’t end until the final product is shipped. Excellence is not new to our business unit, though. This past quarter, we received the 2007 Performance Award from American Honda Motor Company for our performance in meeting their needs for service parts. As we continue our journey to provide energy management solutions, we have several initiatives we are working on. We have a defined path for our Shape Production System (lean initiative) continuous improvement efforts being led by Manufacturing

Moving forward with a new business unit

Manager Craig Arends and Manufacturing Engineer Scott Bacon. These efforts provide solid results in our key performance metrics, and I want to thank our manufacturing team for embracing the plan as we continue down our manufacturing excellence path.

A new business unit for Toyota? Why? We have business from Toyota and a lot of it. So why the new business unit? Focus. Our Toyota business has continued to grow over the last 14 years. By starting a Toyota Business Unit, we will continue the legacy of outstanding quality, engineering and product development. This will enhance our relationship with Toyota.

This focus and energy is needed as we deal with the complexities of the industry we are so passionate about. The current raw material market dynamics, energy trends and global product development needs are providing new challenges, but we are embracing them and are committed to creating competitive solutions for these ever-changing dynamics.

selected to head the new business unit is both familiar and an honor. I look forward to continuing to build our relationships and renewing old friendships with Toyota globally and in North America. As Toyota grows globally, Shape intends to be right there with them throughout the world providing the best energy management solutions available.

BUSINESS UNIT UPDATE SUMMER 2008

BUSINESS UNIT UPDATE SUMMER 2008

Jack Russell Vice President Toyota Business Unit

Jeff Piper Vice President International Business Unit

I have spent 12 years at Shape Corporation focused on international business. Being

thE UNBEATABLE spirit of shape CR-V Zooms Out the Doors Have you ever caught yourself doing housework or home improvements and realized you spent more time walking to get things or put things away than you spent actually doing the chore? That’s what the team in cell 1401 of the International Business Unit did. They spent significant time moving pieces for the Honda CRV from the rollform line, to a weld area, to

The Toyota Business Unit made a miracle happen. your hamper, washer and dryer next to your closet; this requires the fewest steps to go from dirty laundry to clean, stored clothes. Lining up processes is called “one-piece flow.” Cell 1401 worked toward one-piece flow. Instead of eight storage areas, there are now only three! They’ve also condensed their space on the plant floor by using it more efficiently. This means more parts can be built without adding expensive square footage. Also, with inventory spending less time in storage, flaws caused by machine errors are identified and corrected sooner.

If you used the lean manufacturing approach for housework, it would be like putting your hamper, washer and dryer next to your closet. storage, and so on. There were eight different storage areas a part sat in before completion, meaning it took 54 days from beginning to end to get finished bumpers shipped to a customer.

Back row left to right: Shannon Tober, Yvette

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Manning, Al Terry, temp associate, Erica Seacord, Mike Belasco, Matt Ronning, Ed Merz and Rob Fuller. Front row left to right: John Pavka and Justin Wyant

The CRV team began implementing the Shape Production System (SPS). SPS is Shape’s version of lean manufacturing, which is when a company makes operations more efficient and less wasteful. If you used the lean manufacturing approach for housework, it would be like putting

Associates were also involved in improving their areas. During “swarm” events, they watched welding stations to see what could be improved. Every change that eliminates a few steps for the associate reduces wasted time and motion. When all improvements are complete, it should take about 25 days from the time a coil of steel is processed to the time it is on a car at the customer’s facilities. This is an improvement of over 50%!

No, they didn’t turn a bumper beam into the fountain of youth. They used skilled planning, help from other business units, willing associates and a little luck to make a prototype for Toyota in a short amount of time. Toyota needed a prototype quickly, and Bob Bradley (program manager, Toyota) said, “It appeared it was going to be next to impossible [to get it done]. The mill we needed was already busy with several products, but failure is not an option.”

“Failure is not an option.” Bob Bradley, program manager Bob was prepared to beg other business units for help, but to his surprise, he found all he had to do was ask. He contacted Rick Thompson (purchasing, 1900) to get steel expedited to

Thanks to all of the following associates: Mark Alpher Heath Bedford Tom Bonnema

Adam Bross Ron Charles Tadashi Chikami

Troy Cressman Jeff George Bryan Gould Steve Hailstone Chris Harter

Shape, found assistance from Jason Meyer (manufacturing manager, Chrysler), called on Jim Kittle (manufacturing engineer, GM) to provide labor from apprentices, and worked with Ron Charles (program manager, Shape China) to time Mill094 so the parts that were scheduled to be on the mill and the Toyota prototype could both finish on time. When associates were told about the project and deadline, they reacted positively even though many had their schedules altered or had to work overtime. Bob gave associates his cell phone number so he could be reached anytime. He received a few calls and was able to help the associates, for example, find something they needed in order to get their job done. The manufacturing associates’ willingness to work hard, paired with the help provided by other business units, enabled the prototype to get to the customer on time. Bob said he

Ryan Hathaway Jeff Hoekstra Isaac Huffman Tom Jagnecki Tom Johnson

Jim Kittle Mark Kramer Jon Laug Joe Matecki Jason Meyer

Pictured: Jeff George, Bob Bradley,

Adam Bross, Mark Alpher “witnessed the spirit of Shape. We rise to the challenge and we succeed, not just as a business unit, but as Shape when we jump in as a whole and help.”

Dave Patch Jack Russell Bryce Spoelma Greg Stephens Hank Teasley

Rick Thompson Tom Westenbroek Steve Wiebenga Dan Young

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Rob Weykamp Vice President General Motors Business Unit

General Motors

Chrysler

growing globally

People and parts go global

The General Motors Business Unit is committed to growing with our customer—globally.

Do you know that our Chrysler products are being delivered all over the world today? We ship roof bows to Venezuela, truck parts to Mexico, and bumpers to China, Austria, Germany, Canada and Russia. We ship most from Grand Haven; however, we have promised Chrysler that if they expand into more global assembly plants, Shape will follow to support their needs. In upcoming years, depending on the availability and cost of ultra high-strength steel in each major global market, we plan to service the higher-volume vehicle platforms from “local” manufacturing facilities. For example, we plan

In order to continue to grow, we need to work with General Motors in all of the regions they are located in around the world.

to manufacture products in our new Kunshan, China facility for the Chinese market. An interesting aspect of global markets is the shift in the “normal work day.” It is important that we talk with customers during their normal work day. Many times this means 5:00 a.m. or 10:00 p.m. calls to reach them during normal hours. This shift highlights how geography and time zones affect business and how important the customer truly is.

Our sales, product development and launch teams have recently traveled to Germany, Brazil, Korea, China, Mexico and more to support sales and launch activities. By working closely with our customer, we strengthen relationships, solve problems quickly and educate them about our technology and how it can benefit them in a competitive market. We become partners, not just their supplier. In December of 2007, the General Motors Business Unit was awarded business that requires us to produce products in Europe and

mingle and munch at the birthday lunch

It’s no secret that the GM Business Unit knows bumpers. But did you know that their bumper expertise helped them land a roof rack program?

Every month, people on each shift with a birthday during the month gather and enjoy a meal. Anywhere from two to 15 associates are honored per month. While they eat, conversations cover topics from industry news to how people will celebrate their birthdays. Jason said it allows the team to “put faces with names.”

The Chrysler Business Unit knows the importance of an open door policy. To ensure all associates have the opportunity to speak their mind, Business Unit Vice President

Associates can ask anything about Shape, the industry outlook, Shape policy and more. Mike Smith and Manufacturing Manager Jason Meyer host monthly birthday lunches. This guarantees associates an hour with

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At the end of the meal, everyone is full and more informed!

General Motors awarded Shape with the Supplier of the Year award for 2007. This recognizes the outstanding performance that our business unit provides every day. Growing globally with GM and continuing to meet their high expectations for supplier performance are incredible achievements. Thanks team!

from bumper to roof

management to ask anything they want. It also gives business unit leaders time to hear and react to the thoughts of associates.

Birthday lunches are also treated as focus groups. The door is closed and everything is on the table. Associates can ask anything about Shape, the industry outlook, Shape policy and more. Jason said he and Mike answer questions and address concerns. And if they can’t answer a question, they find the person with the right information and get back to the associates.

Mexico. As 2008 unfolds, we will prepare to launch and manufacture in these regions. We will look to our manufacturing teams to provide support as we implement the Shape lean manufacturing culture in these regions. Our activities in Grand Haven will not slow down; however, we will simply expand our reach as our customer requires.

BUSINESS UNIT UPDATE SUMMER 2008

BUSINESS UNIT UPDATE SUMMER 2008

Mike Smith Vice President Chrysler/Hyundai Business Units

What do associates say? Jennifer Buckhalter (mfg. tech) said, “It’s nice to sit down with everyone and get to know them on a first name basis. They give reasons for why stuff goes on.”

Nate Bebout (mfg. tech) said, “It seems like he [Jason] is really taking time to listen.” Birthday lunches “give you a chance to sit down with Jason because a lot of times you don’t have time to talk to him.”

Because of Shape’s good standing as a bumper system supplier and with steel and plastic manufacturing and expertise within our core competencies, GM knew Shape could get the job done. The roof rack is a combination of a Shape rollformed steel rail and a two-shot injection molded part (see diagram), making it the only

part. This saves time, reduces the number of pieces and gives the roof rack the uniform, clean look that adds style and dimension to GM’s latest crossover, the 2009 Chevrolet Traverse. The roof rack comes standard on all of the 175,000 Traverses projected to be produced yearly! Shape also produces the front and rear bumper beams for the Traverse at 1835.

This is the first part Shape makes that is completely visible and exposed to the elements! roof rack of its kind in the entire world. The twoshot process allows two different kinds of plastic materials—a hard and a soft—to be injected into different cavities of the tool in the same cycle. The different materials then bond, forming a solid

Not only is this a new type of product for Shape and the GM Business Unit, but it is

the first product where the business unit was completely responsible, from the concept and design, to engineering, to testing and validation. Dave Powell of the GM Business Unit even enters GM’s computer system and inputs the design data for them! The roof rack is also the first product at Shape that must follow strict class A-surface guidelines. Class A-surface guidelines regulate the roof rack’s appearance. GM tests the part’s color, grain, gloss and harmony ensuring that it meets their standards. This is the first part Shape makes that is completely visible and exposed to the elements!

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FORD/MAZDA

Diversified Products

Newest Launch: Flex

It has been a busy spring for the Ford/Mazda team with preparation for two launches and three new product sales.

striking an opportunity

In May, we launched front and rear bumpers for the latest Ford Motor Company vehicle, the Ford Flex! This launch in Oakville, Ontario will be followed by the launch of the Lincoln MKS front beam and NetShape EA at the Chicago Ford assembly plant.

Strike. It’s not a word that most people associate with opportunity. But opportunity is exactly what the Diversified Business Unit seized. When the Diversified Business Unit received word that UAW workers at American Axle were going on a strike that could affect production at other GM suppliers, they reacted quickly to turn a negative situation into a positive.

With the time the strike gave them, Diversified reprogrammed the welder and made sure it was done right. As Pete said, “We made the best out of a bad situation.” The machine’s operators are also excited about the improvePete Klahorst, manufacturing manager ments. Instead of having to accepted, output increased significantly. But troubleshoot, fix a problem and spend hours the team did not stop there. Adrian Winesett resetting the welder every time an error occurs, led a team and worked with Feyen-Zylstra of pressing one button on the reprogrammed welder Grand Rapids, Michigan. They reprogrammed displays the problem and restarts the machine. the welder and dramatically reduced cycle time With the reprogramming, the GM seat track team and downtime. This change was part of a at cell 1102 anticipates they can improve their continuous improvement process, but before output even more, keeping schedules consistent the strike, the business unit assumed the and permanently reducing costs! None of this welder would be reprogrammed and tested could have been done without the hard work only on weekends. from everyone involved. Thank you!

“We made the best out of a bad situation.”

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Congratulations on a job well done!

slimming down our system

Over a dozen associates in Diversified cell 1102 involved with making a seat track for GM vehicles would have nothing to do when they came to work once the strike started. Manufacturing Manager Pete Klahorst and the rest of the Diversified team reacted quickly. Pete called manufacturing managers from other business units asking if they needed workers. By the next day, all associates were working in different areas. Pete said that when he called other manufacturing managers, “I didn’t have to ask twice. The next day associates were reporting to new supervisors.” The speed of Shape’s reaction allowed Diversified to weather the downturn in business by reducing costs. The business unit didn’t just react quickly; they used the downtime to improve a key welder for the GM seat track. To increase output, Diversified redesigned a weld stud to avoid time-consuming rewelding and proposed the new design to GM. After the design was

On the sales side, Shape and NetShape were awarded three products on the Ford D Platform.

BUSINESS UNIT UPDATE SUMMER 2008

BUSINESS UNIT UPDATE SUMMER 2008

Dan Partenio Vice President Ford/Mazda Business Unit

Jim Rosasco Vice President Diversified Business Unit

The Ford Business Unit recently set out to lose some weight. No, they didn’t start eating celery and visiting the Fitness Factory – they cut 30% of the mass out of our bumper system for the 2010 Ford Fusion, Mercury Milan, and Lincoln MKZ! Ford asked each supplier to trim the weight of their components so that Ford could meet aggressive fuel efficiency goals. Shape didn’t just meet our weight reduction goals – we exceeded them! The recently launched Shape system consists of one common bumper that fits the front and rear of the Fusion, Milan, and MKZ. The system Back row (left to right): Bob DeVoursney,

Gary Scharphorn, Ben Gardner, Paul Bialik, Morey Wagenmaker Front row (left to right): April Gager, Adrian

Winesett, Jim Dodd, Brian Fritz

Shape didn’t just meet our goals—we exceeded them! also includes a unique front and rear NetShape energy absorber (EA) specific to each vehicle. Because of NetShape’s ability to hold very tight tolerances, the EA fits snugly against the fascia, allowing Ford to remove15 pieces of foam they had designed between the EAs and fascias. Previous versions of the front and rear bumpers for the 2006 model year were Shape B-sections, made from high-strength steel. After extensive engineering work, the 2010 model year bumpers are all D-sections made from Martinsitic steel. They have a common material type and thickness across all vehicles, reducing tooling

changeover time. Using higher strength steel allows Shape to use less material, reducing mass while improving performance. This successful program also demonstrates the benefits of Shape-NetShape integration. Bumper and energy absorber product engineers worked together to form the optimal solution for Ford’s needs. Together, they cut the mass of the system while maintaining top crash test ratings. Because of Shape’s contributions, not only are the 2010 Fusion, Milan and MKZ safe and stylish cars, but drivers will also enjoy higher mpg!

2006 Ford Fusion

Top: Rear bumper, 2006 platform Bottom: Rear bumper, 2010 platform Over 12 pounds were shaved from the rear bumper by redesigning brackets and switching from a B-section beam to a D-section beam.

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Making Community Headlines Shape Corp. wins United Way award

BY PETER DAINING, The Grand Haven Tribune “They really go above and beyond in the community, not just the United Way,” said Angie Barksdale, director of development for the local United Way. The award typically goes to the individual or couple that best exemplifies a spirit of volunteering and philanthropy, but organizers wanted to recognize Shape’s community contributions with their most prestigious award.

“They really go above and beyond in the community, not just the United Way.” Company employees are involved with United Way initiatives and Big Brothers Big Sisters of the Lakeshore, as well as less publicized tasks

like building handicap ramps. Shape also participated in more than 20 community projects in 2007 and has internal programs to help employees during hard times.

“Fly, Learn, Return”

“It’s amazing when you listen to the projects that get done quietly behind the scene,” said Shape Business Unit Vice President Jack Russell, who accepted the award at the Spring Lake Country Club on Thursday. “There’s just a myriad of tasks that we do like that throughout the year.” Shape employees gave more than $141,000 to United Way in the 2007-08 campaign, which includes a matching gift by the company of $38,950. Of the approximately 1,300 Shape employees, 922 contributed to the campaign. Shape’s total was $21,000 more than last year and $49,000 more than during the 2005-06 campaign.

shape associates entice students to return to the lakeshore after college

(Courtesy photo/Jeanne Coppola) Jack Russell of Shape Corp., right, accepted the G.W. Haworth Strength of the Community Award at the Greater Ottawa County United Way dinner at the Spring Lake Country Club. He is pictured with local United Way President Patrick Moran.

Students learn about shape Through Junior Achievement Shape associates teach life skills to third graders at Peach Plains Elementary Did you ever want to be a teacher? Many Shape associates have jumped at the chance by volunteering through Junior Achievement. Guest teachers cover units about life skills and business from elementary through high school. Two Shape associates, Danni Schertzing (communications manager) and Corey Hoff (testing manager), recently visited the Peach Plain Elementary third grade class. They spent an hour each day for an entire week with the class teaching them about “Our City.” The students learned about city zones and planning, jobs within a city, and banking. They even learned how to write checks and use an ATM card! Look out for these big spenders! In the process, the students learned about Shape, and the two Shape associates made nearly 30 new friends while volunteering!

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shape in the community SUMMER 2008

IN THE NEWS SUMMER 2008

SPRING LAKE, Mich. –Mar. 14, 2008– The Grand Haven-based automotive supplier was honored for its community involvement Thursday night with the G.W. Haworth Strength of the Community Award at the annual Greater Ottawa County United Way campaign dinner.

GRAND HAVEN, MI –April 22, 2008– What better way to bring our bright, young minds back to this area and help it grow and prosper than to show them what terrific opportunities are right here? Boomerang is an event that enhanced awareness of the professional opportunities that Northwest Ottawa County businesses offer. Encouraging Grand Haven and Spring Lake students to return to the area after earning their degrees was the focus of this event. Local companies gave current high school students an opportunity to see the variety of careers available right in their community.

This is the fifth year that the Chamber has held the Leadership Connect class, which teaches its adult participants about developing personal, professional and community leadership skills. The class also aims to build community awareness and highlight issues facing the area in the future.

“Boomerang: Fly, Learn, Return,” was the brainchild of this year’s Leadership Connect class, an adult leadership development program hosted by the Grand Haven Chamber of Commerce. Class members wanted to retain skilled, educated workers in the community for the next generation.

As part of the nine-month program, participants develop a service project as a way to give back. This year’s class chose the “Boomerang” concept after discovering how little they knew about the jobs available at the companies where their classmates worked.

“We have about 93 percent of our students that graduate from area public schools who go on to get post-secondary education of some sort,” said David

“We’re all competing for the youth and talent of the future,” said class member Pete Klahorst, manufacturing manager at Shape Corp. “I don’t think we realized how stiff that competition is. It’s so important to attract youth and new ideas for communities to continue to thrive and prosper and grow.”

“We want to show them opportunities that they may not be aware of. “ Pete Klahorst, manufacturing manager

Above: Mrs. Drake’s third-grade class at Peach Plains Elementary, Grand Haven Above right: A model of a city built by the class to understand zones Right: Corey Hoff works with the class

C. Miller, the Chamber’s vice president for economic development and current Leadership Connect participant. “We thought it would be a good opportunity to get the message across to those students that there are exciting careers here in Grand Haven. We want them to go off and get an education or life experience — go away, do something great, but come back here when they’re done.” The Leadership Connect enlisted 26 area businesses who set up interactive booths arranged according to the career pathway that categorizes the company, such as business/management or engineering/manufacturing.

Those in this year’s Leadership Connect group (Shape participants include Pete Klahorst and Bill Beland) have put in months of hard work to make “Boomerang” a reality, but Klahorst said it’s a message worth repeating for years to come. “A lot of youth say there’s nothing for me here, and we can’t afford to have that happen,” said Klahorst. “We want to show them opportunities that they may not be aware of. “

(Courtesy photos/Jeff Eikenberry, M&S Companies) The Shape-NetShape booth featured posters about company capabilities, products, and technologies— and even the Can-Am Spyder! Shape, NetShape and Light Corp. were represented by Rob Weykamp, Gwen Moeggenborg, Valerie Williams, Danni Schertzing, Bill Beland, Pete Klahorst, Lynne Bosgraaf, Mark Meyer, Helen Baldus, Cindy Moe and Shelley Carl.

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GLOBAL UPDATES

MEXICO UPDATE – Meet Hector! Meet Hector! Hector Lopez is the Shape Mexico business development leader. You’ve probably seen Hector around the Grand Haven and Novi offices. During a recent visit, the corporate communications department interviewed him. Here’s what they found out.

SHAPE-NETSHAPE AROUND THE WORLD

Hector has a very demanding work schedule. On top of that, traffic on the way to his office in Mexico City is comparable to the traffic in Los Angeles—bumper to bumper! When he’s not at work or in the car, he likes to jog, travel and play soccer.

Shape-NetShape is expanding our global support network. Read on to learn more about our reasons for expansion, new locations and the people that are making it happen.

SHAPE CHINA SUMMER 2008

Our customers’ expectations are that Shape will supply and support them in all geographic regions where they manufacture vehicles.

We ARE growing globally to ensure we have a future in the North American market, and all markets, by servicing our customers globally.

One of Shape’s key values is: SHAPE IS COMMITTED TO DELIGHTING OUR CUSTOMERS

Customers may not award business to Shape if we are not near their production facilities around the world.

Customer satisfaction is part of our Mission Statement and an important part of every associate’s daily responsibilities. Shape has accumulated an impressive list of customers over the years because of the faith and trust that we have earned by transforming customer needs into quality products, delivered on time and at a competitive price. The highest compliment that any Shape associate can receive is a “well done” from a customer.

We must be in Europe to manufacture products that are for the European market.

We need to maintain our reputation as the premier global bumper supplier and remain a leader in the industry. We are committed to providing service where our customers are located. Our customers want to deal with one expert supplier who can solve their complex needs while maintaining lightweight and cost effective products.

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on building a permanent plant. Cheryl joins our team as the director of systems and quality. She will establish the quality procedures, problem solving process, documentation retention system and launch system. Her expertise in all of these subjects will be invaluable to our success. They are both a welcome addition to our team.

If we keep increasing business, then the financial health of the business will be good. North American business is continuing to grow and foster Grand Haven manufacturing. Shape continues to be awarded jobs in North America, such as components for a 2009 crossover vehicle (Chevy Traverse), which is produced in North America. Shape is highly vested in research and development to invent innovative energy management products to meet our customers’ needs globally.

Our global efforts are not eroding our future in Grand Haven. Grand Haven will not see a reduction in business—there are still cars needed in the United States.

The expansion of our manufacturing capabilities will allow us to sell and market these products to a larger industry.

We are not moving Grand Haven work overseas. Business is expanding globally.

This strategy has great long-term benefit to Shape as a whole and ensures the longevity and financial health of our company.

We are NOT moving work from Grand Haven to lower our manufacturing costs in North America.

CHINA UPDATE – Meet Our China Team!

If we expand globally and are near production sites across the globe, then we can continue to do business in North America.

If we don’t keep up globally (follow the trends and the customer), we jeopardize our standing in North America.

Hector and Shape Mexico quality engineer, Miguel Aguirre, are integral parts of the Shape-NetShape global support network. Their commitment to the region and our customers is essential and outstanding.

Hector enjoys coming to Michigan so he can be face to face with people. Plus, he said there

19 reasons for Global Expansion Wondering about Shape’s expansion around the globe? Follow this quick guide to the reasons behind our international growth.

is no traffic and everyone respects driving rules, whereas in Mexico he said a stop sign is seen as a suggestion, not a law! He finds working in Michigan more relaxing and quiet, and he loves eating the West Michigan lakeshore’s freshwater fish. The only thing he doesn’t like about Michigan is the cold weather.

It has been a very exciting start to 2008 for the Shape-NetShape China Team.

training. Special thanks to this team of Dennis

We have established our entity by securing a business license for a Manufacturing Wholly Owned Foreign Entity in Kunshan, Jiangsu, China. This business license allows us to set up manufacturing operations in Kunshan for injection molding, roll forming and welding. With the license in hand, we then obtained the facility via lease and completed all plant preparations. Our first shipment of equipment cleared customs and is ready for installation. We will have a team from Grand Haven to help with installation and

valuable assistance.

Huntington, Gary Weller, Hank Teasley, Jim Kittle, Amy King, Brian Cooper, John Carr, Chris VanderVelde and Zhou Jing for their Joining me in China are Mark Hemmeke and Cheryl Henderson. Both of them moved to Shanghai on March 15 for their expatriate assignment. Mark will act as the technical director focusing on the plant preparations, equipment installation, maintenance and process engineering. After installation is complete and the team is capable of running the equipment, Mark will focus his attention

Speaking of additions to our team, we have added a number of wonderful people to the Shape family here in China. Obviously, it all started with Michael Wang who has done a fabulous job building our sales in China. Since then we have added (pictured left to right) Zhu Koubao (Security), Amber Zhu (Finance), Mark Hemmeke (Technical), Sabrina Liu (HR AA), Rand Stille (President), Cindy Shen (HR Manager), Larry Li (Program Manager), Lucia Yao (Executive AA), Fores Zhou (Sales), Michael Wang (Sales), Alex Gao (Operations), Nelson Xu (Purchasing), Luo Zhonghua (Facilities Manager) and Li Huaming (Electrical Engineer). As you can see, we have been very busy and the team is growing quickly! This photo is from our first orientation group; since then we have welcomed many new members to our team. With such a strong team in place and the great momentum we have built, we are very excited about the year ahead. We can hardly wait to start production this fall! Thanks again for all of the support we have received from the teams in Grand Haven. We would not be in such a positive position without this support! Sincerely, Rand Stille President, Shape-NetShape China

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shape heroes Associates going above and beyond

CELL 1303—CHRYSLER RT TEAM

CORPORATE FACILITIES, MAINTENANCE AND ROLLFORMING GROUPS

Maintenance & Facilities Group Front row (left to right): Leon Puterbaugh Larry Baker Nick Rasmussen Row 2: Dan Shaw Terry Bosma Mauricio Vazquez Jamie Bosch Dave Duncan Don Bogue Dennis Huntington

DELBERT SMITH

Row 3 : Jeff Borsema Larry Bradford Larry Davis Ton Nelson Jason Doughty Nate Mueller John Carr Row 4: Matt Martin Travis Phillips Andrew Gutierrez Pictured from left to right:

Not only is the team involved in new initiatives, they are highly motivated, full of positive energy and they embrace changes and challenges. The team meets weekly at 6 a.m. so both first and third shifts can be included. Every section of the business unit that is involved in the RT program sends a representative to the meeting. This means one person from all areas—such as roll mill operators, engineers, welders and skilled trades workers—meets and brings issues from their areas to address and reports on progress made from the previous week. If there is any confusion between first and third shifts, it is discussed with everyone and resolved immediately. Then, in the RT front assembly area, a board is updated giving operators their

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tasks and foresight on the plan for the next two weeks. If tasks have not been completed, the operator knows the cell must work overtime, meaning there are fewer surprises for associates. The board also enables operators to understand and own the process and problem. Cell Leader Marvin Kalasz said that this understanding and ownership has increased the morale and success of the team, as they care even more about their jobs and the outcomes. Manufacturing Manager Jason Meyer and Manufacturing Engineer Ed Szymanski, both of the Chrysler Business Unit, agreed that they are not trying to reinvent the wheel when it comes to manufacturing processes. They are giving operators the opportunity to highlight problems, which are then resolved by the team and tweaked to best suit the work area. Of course, there have been struggles with the process, but the team has been very successful at not just abiding by the new initiatives but accepting change and new challenges! Marvin Kalasz said that the team is continually showing improvement in their processes. They are highly motivated, self sufficient, have positive energy and like to experiment with new things. Their teamwork and motivation has made the RT Team Shape Heroes!

Nominated by Jason Meyer

Delbert Smith’s (manufacturing technician, 1820) persistence in reducing scrap has paid off for the GM team. Cell 1507, which produces door beams for the Chevy HHR, has exceeded their goal for reducing scrap. Four parts were scrapped during each shift as part of the team’s daily Green Tag Check. Delbert turned in ideas to reduce scrap caused by this process, followed up and kept pursing the issue of scrap reduction. After implementing Delbert’s idea, the frequency of destruction tests, or Green Tag Checks, has been reduced. Delbert’s persistence and great ideas for scrap reduction make him a Shape Hero! Nominated by Mitch Buikema

Over the past several years, corporate maintenance and the rollforming group have saved all the scrap metal they get from machines they repair or update. Scrap wire, used brass fittings— anything that can be scrapped is saved. Two or three times a year, they turn in the scrap to Padnos Iron and Metal Company, which gives them money for their used metal. This means scrap doesn’t fill up Shape dumpsters or go to waste in a landfill.

The money they make from the scrap is donated to the Helping Hand fund. Over the past year, these groups donated over $20,000 to the Helping Hand committee. The committee helps Shape associates dealing with medical issues or illness pay their bills. They also serve healthy meals at the quarterly meetings.

Not pictured: Everett Scott William Morrell Warren Crandall Bob Cowan

Way to go corporate maintenance and rollforming group for your initiative to help others and the environment!

Left to right: Ted Wright Dave Flickema Dwayne Brott Not pictured: Wes Griffes

Nominated by Nate Mueller

Rollforming Group

AMY KOLKEMA Amy Kolkema, administrative assistant to Diversified Vice President Jim Rosasco, is a long-time Shape associate who deserves recognition for her years of hard work. Here’s why Jim thinks she is a Shape hero. Amy is one of those quiet, behind-the-scenes associates that makes everyone’s life run smoother. She has an appetite for helping people and eliminating waste that never seems to be satisfied. Amy would rather help than receive recognition for a job well done. She sends friendly reminders to people when things are due and has this sixth sense because she knows when people need a reminder. I spoke to Andy Tanner (manufacturing engineer, International) who has diabetes, which requires him to keep a close eye on his sugar level. Recently, his sugar dropped so low that an ambulance was called. Andy is fine, but I bring this up because when he worked at 1900, Amy always kept an eye on him and reminded him to check his blood sugar when she thought

he needed it. Andy said, “I don’t know how she was able to tell, but every time she told me to check my blood sugar, it was low.”

shape heroes SUMMER 2008

shape heroes SUMMER 2008

These Shape Heroes don’t just show up and work—they get involved! The RT Team (Cell 1303)—which makes front and rear bumpers for a Chrysler minivan—is trying out new ideas and adapting quickly to changes during their continuous journey in Shape Production Systems (SPS). SPS is Shape’s lean initiative to make operations more efficient and less wasteful. This cell produces the Chrysler BU’s highest volume product as well as the most technically challenging.

Patrick Darke Ben Higgins Jim Jones Aaron Becher Dave Hill Harold Miller Adam Carnell Jesse White Jeff Lynn Regina Reed Chris Vetter Casey Butcher Matt Harter Dan Gardner Derek Kempker Gale Pavlin Jim Larson Patrick VanOtteren Donna Larabee Kendra Best Tanya Bowers Bill Morehouse Tammey Brown Tom Cooper Ed Szymanski Marvin Kalasz Shawn Jasman Don Hackenberg Jason Meyer Not pictured: Guy Ignafol Jason Supinger Todd Thompson Bryan Gould Eric Hoover Rob Essenberg Rick Smith Steve Hackney Jeff Moore

Some Shape Heroes help the environment. Some help others in the Shape family. Corporate maintenance at 1900 and the rollforming group at 1835 help both!

Amy is always willing to do what it takes to help out. In addition to her countless responsibilities, she picked up the work load of another position, the administrative assistant to the manufacturing manager. She also took the initiative to learn the planning process so she could fill in for planners when they are on vacation. Amy has been a real blessing to the Diversified business unit and is a key factor in our success. She is a person that makes Shape a great place to work. On behalf of the Diversified business unit and Shape Corporation, thanks for all you do, Amy. You are the best!

Nominated by Jim Rosasco

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scrambling for golf SHAPE FAMILY SUMMER 2008

What could be better than a round of golf on a brisk spring morning? The annual Fitness Factory Golf Scramble was held on Saturday, May 17, 2008 at the Grand Haven Golf Club. Teams of four, made up of Shape

Corp. and sister company associates and spouses, competed against each other for the top prizes. Congratulations to the winning team of Kreg Wierenga, Toby Jacobson, Casey Turner and Bill Beland!

ACKNOWLEDGEMENTS Thanks to everyone who made this issue of Shape on the Roll possible! Bob Bradley Mitch Buikema Sandy Charon Alexis Crandell-Blackmer Darla Crouse Tom DeVoursney

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Rob Fuller Jorri Heil Marvin Kalasz Pete Klahorst Mary Kotecki Jason Meyer

Nate Mueller Dan Partenio Doug Peterson Jeff Piper Jim Rosasco Jack Russell

Bob Salmon Danni Schertzing Dave Shafer Vern Simmers Mike Smith Rand Stille

Ed Szymanski Char VanderStel Gary Verplank Morey Wagenmaker Rob Weykamp Adrian Winesett

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After Hours shows Shape associates and those important to them doing what they love. Whether it’s a hobby, volunteering, organization membership or achievement, anything that adds happiness and meaning to the lives of associates and their families is what After Hours is all about! AFTER HOURS SUMMER 2008

VOLUNTEER WORK Gary Sluis (electrician, Stampings) took time off from work to go to San Luis Potosi, Mexico, but he didn’t go on a vacation. He worked! Along with five men from his church, Gary travelled to Mexico to work at a children’s home. The home houses about 20 kids whose parents cannot provide basic necessities. Gary upgraded overloaded circuits, replaced outlets and light switches, added lights and much more. The other volunteers built closets and

PHOTOGRAPHY Eric Whitlow (machine repair, 1900) has been taking pictures since he was 12 years old, but in the last two years, he has pursued the hobby of photography. He enjoys photographing birds and animals, and he likes to take close-up images of just about anything. Photography has become his passion because he likes the technical challenges it poses. He must use

TREASURED MEMORIES Kamika Wilson (mfg. tech, 172nd) believes that memories are treasures to cherish, and she loves to be creative, which is why she started making scrapbooks for her niece and nephews. For a year now, Kamika has gathered photos of her niece and nephews and collected mementos, like the footprints taken when

WHAT’S YOUR FAVORITE SUMMER ACTIVITY?

WHAT’S YOUR FAVORITE ICE CREAM FLAVOR?

Swimming

25%

Chocolate

22%

Muskegon Summer Celebration, Muskegon, MI

44%

Camping

21%

Mint Chocolate Chip

22%

Rothbury Music Festival, Rothbury, MI

18%

Working in the yard

17%

Moose Tracks

21%

Unity Christian Music Festival, Muskegon, MI

15%

Going to the beach

12%

Butter Pecan

13%

B93 Birthday Bash, Ionia, MI

8%

Boating

12%

Superman

10%

Blues on the Mall, Grand Rapids, MI

8%

Biking

7%

Vanilla

7%

Walking

6%

Cookies and cream

5%

Lollapaloza, Chicago, IL; Rock the Coast, Muskegon, MI; Muskegon Irish Music Festival, Muskegon, MI

2% each

results from survey posted on ShapeWeb (125 results collected)

PERFECT SCORE

fixed things, including window screens and the hot water heater. This was his second mission trip to Mexico, and he hopes to go back next year. “It was a wonderful experience,” he said. He emphasized that the most rewarding part was developing a relationship with the children and the home’s managers. They lodged at the same facility the children were at and even stayed up late Friday night playing board games with the kids. Gary said, “It was probably the best five days off in a long time.”

the correct aperture and shutter speed, and he must pay attention to the composition in order for a photograph to look good! When he’s not shooting photos, Eric enjoys biking. He’s been doing it for the last two years and likes the exercise he gets. When he rides on Saturday mornings, he makes sure he goes at least 20 miles!

Rich Beckley (mfg. tech, GM) has his bowling swing perfected. On March 27, 2008, Rich scored his second 300-point game at Sherman Bowling Center in Muskegon. A score of 300 means he bowled strikes the entire game! In 2002, he bowled his first 300 game, and for each feat he is awarded a championship ring. He also recently won first place in the Muskegon Heights Eagles League championship.

Katie, daughter of Michelle Potter (business analyst, 172nd), is an accomplished vocal performer. Along with singing in a church choir, she takes private voice lessons and sings with the Grand Haven Chamber Choir and with the Grand Haven Choral Ensemble (the top members of Chamber Choir). The GH Chamber Choir placed first in a state-wide choral competition and performed at the Youth Arts Festival at Western Michigan University in May. It’s a huge honor for the group, and they’re thrilled!

Lydia’s team from Griffin Elementary School

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BIRTHDAY SURPRISE Toshiya Murase and Yuji Maeta, Shape Japan associates, gave Jason Bricker (sales engineer, 172nd) a surprise while he was working in Japan on his birthday. They took him golfing, which is something he loves! Or should we say they took him as close to golfing as he could get in Japan. Toshiya and Yuji took Jason to a driving range high up in the mountains outside of Tokyo after a long day of work. In Japan, there are only a few golf courses because of the limited space to build. This means a round of golf costs about $500, and the driving ranges are packed. Yuji had never swung a golf club before and was amazed at Jason’s powerful drive!

DECORATING TREATS DYNAMIC DUO

Lydia VanDoorne, daughter of Randy VanDoorne (programmer, 172nd), participated in the “Obstacles, Of Course!” Destination ImagiNation competition in March at Reeths-Puffer High School in Muskegon. Destination ImagiNation, Inc. inspires participants in all of its programs to learn the process, art and skill associated with problem solving. Teams of five to seven members work together to apply creativity, critical thinking and their particular talents to solve a team challenge.

His bowling swing also helps him with his summer sport— horseshoes. Both sports require the same motion of an underhand pitch and a follow through. Rich is a two-time state champion horseshoe player. Congratulations, Rich!

BEAUTIFUL MUSIC

they were born or wrappers from their favorite candy, and compiled them into scrapbooks. In every book, she includes a family tree and pages for special events like the first day of school and Halloween. She loves mixing color and texture to achieve beautiful pages! Kamika is now working on scrapbooks for her own children.

IMAGINATION AT WORK

WHICH SUMMER MUSIC FESTIVAL ARE YOU MOST LIKELY TO ATTEND?

took first place in the regional tournament. (Lydia VanDoorne is second from the right). The Griffin squad was one of three Grand Haven teams that will advance to the state tournament where they will compete against teams from five other regions in Michigan. Tournament officials said more than 250,000 students in elementary, middle and high schools in all 50 states and 47 other countries are participating in the D.I. competition this year. Winners in the state tournament will advance to the Global Finals in Knoxville, Tenn.

John Mekins (instructional designer, 1820) and Mike Yonan (manufacturing engineer, stampings) each have a son that plays for the Wings, a team in the Tri-Cities Soccer Club’s five-to six-year-old category. John’s son, Christopher, has played soccer for two years. Mike’s son Tommy has played for one year. Tommy is one of the leading goal scorers on the team, and Christopher scored six goals in the last fall game. With this pair on the team, no wonder they have such a great record! Their team finished the fall season with a 5-1 record. They are together again for the spring season, and John is assisting with coaching!

Merissa Navarre, wife of Scott Navarre (product development engineer, 172nd), has decorated cakes for just over two years but is already getting recognition for her talent. Last fall, she entered a contest judged by celebrity cake baker Duff Goldman from the Food Network’s “Ace of Cakes” show. The scarecrow cake (pictured) was an original idea. Merissa said she was, “excited enough to have Duff Golfman gaze upon one of my cakes.” She had a reason to be even more excited, though, after her cake received an honorable mention (3rd place)! Merissa’s favorite aspect of cake decorating is making 3D or sculpted cakes, like the scarecrow she made for the contest. “I love to turn a slab of cake into something that looks nothing like cake.” Merissa hopes to start a cake decorating business in the future. You can see more of her work at www.freewebs. com/springlakecake.

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STAY TUNED! Shape’s summer party returns as part of the Muskegon Summer Celebration!

Watch for more details soon Muskegon Summer Celebration June 26-July 6, 2008

ideas

1900 Hayes St. Grand Haven, MI 49417

Do you have a story or idea that you think would make a great addition to Shape on the Roll? Contact Alexis Crandell-Blackmer at 616.850.3681 or [email protected].

see page 20 for DETAILS

PRSRT STD US Postage Paid Permit No. 1 Grand Rapids, MI