GERARDO CHAPA ARREDONDO

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GENERAL MANAGER

TECHNOLOGY - SOPHISTICATED START-UP HIGH GROWTH CORPORATIONS

Versatile management professional with broad ranging experience in manufacturing and leadership of finance and operations.

More than 25 years of hands on management and experience in both start-up operations and high volume with labor intensive.

Successfully in linking accounting and finance to business operations to drive forward organizational development, controls cost

and improve earnings. Strong leadership, lean manufacturing, analytical and decision making. Experience and expertise

includes:

* Budgeting (capital and operation) * New plant construction and start up

* Financial statement * QS-9000 /9002 certification

* Project management * Business Plan

* Maquila and Pitex programs * Lean manufacturing

* 15 years plus in automotive industry * High volume and labor intensive

* MRP /MSSv material & production planning * Demand flow technology

EDUCATION AND TRAINING

ELECTRONIC AND COMMUNICATION ENGENEERING DEGREE

UNIVERSITY OF NUEVO LEÓN, MONTERREY, Mx

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IEM SA DE CV / IINCC --- Monterrey N. L 2005 -- Actual

(Printed Packaging & Display Manufacturing Plant with 80 mill / sales p/yr )

GENERAL MANAGER

IEM SA DE CV,,, Manufacturing Plant subsidiary of IINCC dedicated to the Printed Packaging Business,, the plant is located in

the state of Nuevo Leon in Monterrey, Mexico . we began operations in 2005 with an average of 30,000 boxes per month,,,

currently Plant is manufacturing an average of 350,000 boxes,, 80% sales are for Mexico market and 20% we export to USA.

The plant project was pretty much on extension area from our subsidiary Plant and focus to the Packaging Business,, Plant really

struggle to make money the first couple of years, We start the Plant from practically zero and go through process of developing

Customers and Suppliers as well all other things require for a start up,, currently we are making money and practically self

sufficient,, we are now focusing on new projects and plant growth as well relocating operations to a bigger size facility.

Currently this year we are in the process of relocating to a bigger size and have invested on new equipment to increase Plant

Capacity in order to start support new projects and growth,, Business Plan has been developed to triple sales for the next 12

Months … so we do have a pretty aggressive growth plan .

RESPONSIBILITY:

• Start Up of New Operation

• Develop Customer Base

• Develop Suppliers Base

• Develop Bank line Credit

• Budgeting ( Capital and Operation )

• P&L ( Financial Statement )

• Business Plan

• New Investments

MAIN ACCOMPLISHMENTS:

• Constitution of New Plant ( Government Requirements )

• Develop a Financial Control System ( tax, Inventories, etc )

• Relocate and Start Up of Manufacturing Equipment

• Recruiting and associates training ( Direct & Indirect )

• Develop Procedures and Instructions

• Perform a Profitable Plant Operation on second year

• Accomplish Plant operation to become Self-Sufficient

• Export to USA Customer

• Growth sales Accomplishment almost triple this current year

• Develop bank Line Credit for the second year of Plant Operation

• Develop Line Credit from main suppliers

COLLIS DE MEXICO --- Apodaca N. L 2001 -- 2004

(largest wire shelving manufacturing with 120 mill /dlls sales p/yr )

GENERAL MANAGER

Collis de Mexico,,, has two of the six plants of the company group,, one plant located in the state of Nuevo Leon and the other

one in the state of Guanajuato the first plant in Mexico began operations in 1998 as a distribution center,,, 8 months later the

finishing line was relocated as the first step to continue the relocation of other manufacturing product lines, to achieve a total

production of 3000 pcs/day with a total headcount of 60 associates.

The plant really struggle to make money the first couple of years, I was hired in jan/01 to take over current plant responsibility as

well the future Mexico growth . We had to move fast the first three months to service and improve customer requirements as well

implement immediate corrective actions to assure delivery and quality control,,, and also take care of the plant growth,, we went

from 3000 pcs/day, one plant, one shift to 24,000 pcs/day within six months.

Within first year we had to start looking for land in order to start a second plant near our main customers in the state of Guanajuato,, so by sep/01,,, nine months later we were relocating some manufacturing lines from our current plant due the start up of a new

project, so after 12 months we were running two plants and manufacturing 45,000 pcs/day with a total headcount of 500 plus

associates.

RESPONSIBILITY:

• three plants ( two in Mexico and one in USA )

• budgeting ( capital and operation )

• P&L (financial statement )

• Business plan

• 4 mill /dlls sales per month

• Mexico operation

MAIN ACCOMPLISHMENTS:

• Re-design and change process plant layout within three months

• Implement Lean manufacturing within three months

• Implement a total kanban system including customers and suppliers

• Reduce scrap from $100k dlls/mth to $10k dlls/mth

• Improve plant productivity from 45% to 85 % within six months

• Reduce overall inventory from 12 weeks to 2 weeks (implement Bpcs)

• Reduce wip to no more than 4 hours

• Improve ppm levels from 20,000 plus to 500 ppm average

• Obtain ISO-9000 certification as well ISO-9002 re-certification

• Make a profitable operation within three months

• Accomplish Mexico operation to become self-sufficient

• Accomplish a total of 20% sales company with 40% profit participation

• Lead and support all USA plants toward Lean Manufacturing implementation

• Start – up a second facility in the state of Guanajuato (220,000 sq-ft,, 400 assoc )

• Take over a USA plant responsibility within my first year (forth smith)

VEGE DE MÉXICO Escobedo N. L. 2000 --- 2001

(Second largest re-manufacture engines in the world with 100 mill/sales)

OPERATIONS MANAGER

Vege de México is the largest engine remanufacture plant in the group, two other plants are located in Holland ( Europe ) one in Túnez

(Europe ) and one in Kentucky (USA ) . The México plant currently remanufactures 150 engines per day with a total headcount of 485

employees, the plant started operations in 1988,,, The plant started remanufacturing 5 engines per day back in 1988 and grew up in a time

frame of 8 years to 120 engines per day, with excellent operation performance, even do the last 4 years the plant has experienced all kind of

problems and no growth at all.

Joined company as an operations manager to help turn around four years of poor plant performance. Report direct to general manager and

manage 10 direct reports and 400 indirect. Plant started-up 13 years ago, with very good results up to 1996, even does the last 4 years plant

performance has been very poor. The results of some of the key indicators such as quality, efficiency, training, cost control, inventory levels,

overhead, indirect, customer claims costs, poor processes, very bad manufacturing habits, union relationship, etc are all out of control and

have caused plant earnings to go dramatically down.

RESPONSIBILITY:

Operation responsibility includes Quality, Production, Maintenance, Manufacturing engineering, Product engineering, Production Control,

Purchasing, Import / Export, Training, Laredo Warehouse, Core center Warehouse Job objective is to improve operation performance

as son as possible, the following actions and achievements were accomplished :

MAIN ACCOMPLISHMENTS:

• Reduce inventory 1,000,000 dollars.

• Reduce wip from six weeks to one wk

• Reduce trailers to be unload from 48 to 8 (between Laredo and Monterrey)

• Implement kanban system to control production and wip

• Increase 30 % space utilization (avoid 1,000,000 dlls plant expansion investment)

• Re-define organization and job responsibility.

• Increase production from 140 engines/day to 180 engines/day.

• Implement quality & operator certification program.

• Floor instructors (training)

• Improve production & purchase planning.

• Reduce by 10 % direct labor

• Eliminate uncompleted engines from 60/80 day to zero.

• Implement the total Visual Management System

• Establish a master production schedule

• Improve material handling, housekeeping, and discipline

• re-organize production from 20 line supv to 6 area supv.

All actions begun to show better trend and results towards the desire direction in order to work achieve a world class operation.

PARKER AUTOMOTIVE DE MÉXICO Apodaca N. L. 1994 -- 1999

(Automotive Connector Division manufacturing A/C Hoses)

PLANT MANAGER

Parker Automotive de México is one of the largest automotive connectors manufactures, is part of Parker Hannifin Corporation and

the Climate and Industrial Control Group. Parker Automotive de México started back in 1994 manufacturing 100 hoses per day with a

workforce of 70 employees in the first year of operations with one main customer, General Motors.

Four US citizens move to Monterrey, Mx to help the plant start up, joined the company as the Assistance Plant Manager to take over

the plant responsibility after time, after 18 months I took over Plant Manager Responsibility.,,, Over the next 4 years the plant growth

went from 5 mill/dlls sales to 42 mill/sales, during this time the main challenges and responsibilities includes:

RESPONSIBILITY:

• Two plants and five parker divisions and also the service parts plant.

• All staff manager’s direct report (finance, human resources, production, quality, engineering, maintenance, materials, and

import/export)

• 40 salary indirect

• 600 operators hourly indirect

• 20,000 A/C hoses manufacture per day.

• 4.5 mill/dlls per month sales.

• Mexican sales report indirectly.

• Laredo Warehouse (raw material & finish goods)

• Plant start up constitution (maquila program, government permits, etc)

• Land location and start-up of new plant (50,000 sq-ft)

MAIN ACCOPMLISHMENTS:

• Sales plant growth from 5 mill/dlls to 42 mill/dlls in 5 years

• Obtain the national supplier permit for Mexican sales.

• Coordinate the start-up of the existing facility and new plant (Montemorelos)

• Obtain the QS-9000 certification in the second year of operation

• Zero customer complaints and 60 ppm 6 months average -

• Become self sufficient within 2 years (tooling & equipment)

• Hire and train 4 Mexicans to implement the kanban worldwide (parker plants)

• Increase 33% sales with 26 % headcount reduction and 20 % less space.

• Design and build equipment / tooling to export to other parker plants.

• Teach & implement our quality programs to other parker plants

• Identify and development of local suppliers (approx 1,000,000 dlls cost reduction)

• Build samples for new business.

• Become the model plant with approx 1000 visitors per year.

• Establish a lean manufacturing operation

COMPAÑÍA DE MOTORES DOMÉSTICOS Apodaca N. L. 1988 - 1993

(Emerson electric division manufactures 1 hp electrical motors for a/c units)

PRODUCTION & QUALITY ASSURANCE MANAGER

Compañía de motores domésticos was one of the first plants that started operations under the maquila program in the Monterrey area

back in 1997. the plant was supported in the start up by a sister plant (Motors US ) next door to the facility and also transferred some

experience people from various levels during start up.,,, A couple of US Citizens were move to México for three years to help the start

up of the operation, I was hire after eight months of plant start-up as the Quality Assurance Manager and after 3 years promoted to

the Production Manager position.,,During the time I worked for Emerson the plant growth went from 3000 motors per day to 14000

motors per day with a workforce of 700 employees, the following responsibilities and main achievements were accomplished:

RESPONSIBILITY:

PRODUCTION MANAGER: (1992 - 1993)

• 14000 motors per day assembly

• 5 Head department supervisors direct report

• 1 General Supervisor (second shift)

• 43 Line supervisors indirect report

• 550 Operators hourly indirect

• Assistance plant manager functions

QUALITY & ASSURANCE MANAGER: (1988 -1991)

• Quality Assurance System Development

• Receiving and Inspection area

• Gage & Calibration Control Program

• Focus Customer Contact Program

• Statistical Process Control Implementation

• 5 Supervisors & 23 Auditors.

MAIN ACCOMPLISHMENTS:

• Lead and never fail any of the 8 customer quality surveys

• Achieve second place of Nuevo Leon quality award.

• Achieve 2 years of zero quality customer complaints.

• World Record Quality Rating (93.5) first time quality survey by Carrier.

• Participate in the start up and implementation of the total quality system.

DELCO - ELECTRONICS Matamoros, MX / Reynosa, Mx 1982 - 1987

(Deltronicos de matamoros and delnosa en Reynosa a General Motors Subsidiary)

QUALITY AND PRODUCTION GENERAL SUPERVISOR

Delnosa in Reynosa, Mx started operations in 1985 a group of five people were selected from Deltronicos de Matamoros plant

located in Matamoros, Mx to support start-up. The facility has two plants of 200,000 sq-ft each and assembles all kind of different

automotive electronic products .( assembly, testing & plastic injection ) I was promoted from Deltronicos de Matamoros plant to

become the production and quality general supervisor for the a/c controls plant and relocated to the new plant Delnosa in

Reynosa.

The plant is located in Reynosa border towns from McAllen, TX, US Citizens also were relocated from US Plants to help the start

up; the main responsibilities during this time were the following:

RESPONSIBILITY:

DELNOSA : QUALITY & PRODUCTION GEN SUPERVISOR ( 1985 -1987)

• Production department

• Quality Control Department

• Hourly training program

• 16,000 a/c controls per day

• 8 Supervisors direct report

• 250 Hourly indirect labor

• 16 technicians

DELTRONICOS: SOFTWARE ANALYST ( 1984 )

• Development and implementation of software package for import export in order to handle more than 6000 part

numbers for the maquila requirements (permits, pediments, cancellations, invoices, etc)

DELTRONICOS: --- TEST EQUIPMENT ENGINEER (1982 -1983)

• Maintain hardware and software of a modular test system for process control in order to perform functional test of

20,000 ignition modules per day with 8 test stations.

MAIN ACCOMPLISHMENTS:

• Participate on start up of both plants ( Matamoros & Reynosa

• Development and implementation of the import/export software

• Development and Implementation of the quality Improvement teams.

• Certify Instructor to teach the Philip Crosby Quality System.

• Development & Implementation of the Zero Defect Program.

• Reach and maintain 500 Ppm in line quality

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