FixLine Process Presentation

Symach S.r.l.

Via Bazzane, 69 Calderara di Reno 40012 Bologna - Italy

www.symach.com info@symach.com

Phone +39 (0)51 963161

FIXLINE PROCESS PRESENTATION

TABLE OF CONTENTS 4

1.

Introduction

5

2.

Drytronic Technology and “SPAP” Symach Paint Application Process

6

3.

Segmentation of Damages

7

4.

First Process is for “1P - One Panel Damage (small repairs)”

8

5.

Second Process is for “2.3Panels - 2 and 3 Panels Damage (medium repairs)”

9

6.

Third Process is for “4+P - More Than 4 Panels Damage (large repairs)”

10

7.

How Symach Designs a New Body Shop

11

8.

Layout and Process Description

14

9.

Advantages

15

10.

Products

1. INTRODUCTION Symach was established in 2001. The Italian-based company is known for producing high-quality equipment and developed the FixLine system. Since 2011, Symach has constructed body shops worldwide using this innovative process. When combined with its Drytronic technology and SPAP (Symach Paint Application Process), which will be discussed later in this presentation, there is a substantial increase in productivity for shops.

FixLine is based on the Lean concept, in which an organization seeks to continually improve its processes in order to become more efficient and maintain quality. It also uses an industrial organization concept to repair cars rather than an Artisan family-type company, which is currently used in the body shop sector.

The FixLine process not only utilizes specific equipment and tools in a new way, but it is incorporated into all phases of the repair, using a different drying technology, equipment and layout in the body shop.

Symach uses a new methodology that organizes the various repair phases and includes daily planning for shops, spare parts and training staff.

The first question is: Why haven’t body shops done this in the past?

The answer - Symach’s Drytronic drying technology helps make this new process possible.

Over the years, many body shop consultants have tried to introduce a different type of organization in shops to change the process and help make these businesses more industrialized. Most times after being implemented, there was minimum to no change for the majority of the shops.

Just to avoid any possible confusion, the Symach drying technology is the key that makes it possible to change how body shops operate.

The Drytronic technology dries paint in just a few seconds. For example, it can dry one door in one minute and 30 seconds, which allows continuous workflow during each phase. Damaged cars can be repaired without any interruption. Another benefit is that a technician doesn’t handle three or more different cars during the working process, like they do today.

One of the main reasons consultants in the past didn’t achieve the expected results was because of the continuous interruption during the repair phases. With the application and drying time for body filler, primer, waterborne and clear, it doesn’t permit technicians to work continuously on the same car. Instead, if often produces confusion and inefficiency and doesn’t allow the repair phases to be organized.

Considering that the current time to repair a damaged vehicle is 12 to 14 hours, it requires about eight days. Although the car is inside the repair shop for these eight days, there are less than two days of actual work. During this time, the car may be moved inside and outside of the shop seven to eight different times. Not only does this take up space, but it is costly.

In conclusion, we want to share information about a new process that is made possible due to the “Symach Drying technology,” which dries one panel in less than two minutes. This permits every technician to work on his phase of the reparation, on the same vehicle, from beginning to end.

4

2.

DRYTRONIC TECHNOLOGY AND “SPAP” SYMACH PAINT APPLICATION PROCESS

“ For this topic, Symach has a specific brochure you can download from our website (www.symach.com). Video coverage is

also available on our YouTube channel (www.youtube.com/user/symachsrl). The following is a brief presentation of the technology

”

In the introduction, I mentioned the reason why it is possible to change the process in body shops. It is due to Symach’s use of a different technology to dry paint. It is also because of a different paint process that is used, which is faster than a conventional one. Every brand and every paint work with this Symach technology.

In 2001, Symach developed and patented a new technology to dry paint called Drytronic (electromagnetic wave technology). With this European technology, it takes 50 seconds to dry clear. Two years later, the company developed a specific paint process called “SPAP,” Symach Paint Application Process. It saves 60% of the application time compared to the conventional paint process.

The Drytronic technology, combined with the SPAP paint process, allows technicians to work during the preparing and painting phases without waiting for flash off time and drying time. This is because the drying happens in few seconds.

The technology and process are used for body filler, primer, waterborne and clear.

Symach is one of the first companies worldwide to have produced a robot, in several different models, for drying paint.

The FixLine process uses the robots for body filler, the preparation of primer and for waterborne and clear inside of the spray booth.

In addition to acting as a consultant, Symach will assist with preparing a business plan, designing the layout of a shop, installing equipment and training all of the technicians and managers.

5

3. SEGMENTATION OF DAMAGES The FixLine process uses the segmentation of damage to repair cars, utilizing three different processes, based on the number of panels involved in the accident.

The three processes are for: - One panel damage – (1P) - Two to three panels damaged – (2.3P) - Four or more panels damaged, including a non-drivable car – (4+P) This segmentation takes place only when the quantity of repairs in one group justifies the individual process. When the number of repairs in one of the three groups is insufficient to justify the segmentation, they will be repaired in the closer group.

Why utilize the segmentation of damage?

I like to answer this question with another question: Why does FedEx use a small van to deliver mail inside the city and a trailer to move 10 tons of goods?

It is evident that repairing cosmetic damage to one panel versus more severe damage where the chassis and six panels are involved, are two totally different jobs. To repair them with efficiency, skill and the best tools, three different processes are needed.

This makes it possible to optimize each phase of repair, the skills of the technicians and the equipment. In addition, it maximizes quality, efficiency and production.

6

4.

FIRST PROCESS IS FOR “1P - ONE PANEL DAMAGE (SMALL REPAIRS)”

Why is it more convenient to repair 1Panel separately from the other repairs?

“1Panel,” is roughly 20% of the total market of damages; the key to key required is same-day delivery and that the cost of the reparation must be reasonable. These two targets are nearly impossible to meet using the conventional process.

The repair process for the “1Panel” is quite simple. It can involve replacing or repairing the panel, the body filler, primer and the painting. It is evident that the repair of one panel doesn’t need a high level of skill and doesn’t need sophisticated equipment.

The graph below shows the benchmark and the amount of work for every phase of repair for the 1Panel repairs: BENCHMARK STATISTICS REPAIRS PER CATEGORY

% OF REPAIRS

ONE PANEL

23,0%

PANEL DEPARTMENT PANEL REPAIRED

PANEL NEW

n. panel per repair

n. panel per repair

0,68

0,33

PAINT DEPARTMENT BODY FILLER

PRIMER

n. panel per repair n. panel per repair

0,63

0,78

WET ON WET SEALER

n. panel per repair

BLANDING

PAINTING

n. panel per repair n. panel per repair

0,33

0,28

1,28

For this type of repair, the “FixLine process” uses a “FixStation” where one technician with multiple skills repairs the damage in every phase, without sharing the job with other technicians.

FixStation can be utilized by one or two technicians. When there is only one technician, the production is approximately four repairs per day. When there are two technicians, the production per day is around eight repairs.

FixStation is a booth and a workstation at the same time, equipped with a Flydry robot for drying, body filler, primer, waterborne and clear, and also a paint mixing room, all in one box. It is available in two possible layouts: ̵​̵ 1st layout: one FixStation and one technician with multiple skills to produce four repairs per day. ̵​̵ 2nd layout: one FixStation and one work stall outside of the booth, connected with CarMover and side pneumatic door, where two technicians, one for the preparation working in the work stall outside and the other for the painting inside FixStation, can produce eight jobs per day.

In conclusion, repairing “1Panel” separately from the rest of the repairs makes it possible to reduce the labour cost per repair. This is because the efficiency improves to 20 jobs per technician per week. Consequently, it drastically reduces the cost of the reparation and the key-to-key time is half a day because the repairing takes no longer than two hours on average from start to finish. This process also reduces confusion and many cars being relocated in the shop.

A brief of FixStation + work stall:

7

5.

SECOND PROCESS IS FOR “2.3PANELS - 2 AND 3 PANELS DAMAGE (MEDIUM REPAIRS)”

Why is it beneficial to repair “2.3Panels” separately from the repairs of four or more panels?

The “2.3Panels” are roughly 60% of the total market of damage. These repairs normally don’t involve frame or pull work.

They also involve limited cutting and welding parts; the time for the reparation is quite similar for every repair and so it’s easy to plan.

This size of repairs regularizes and maximizes the daily production inside the shop because the gap in time between repairs is limited. It is well-known that one of the most important aspects of daily production is having regular flow and it is impossible to improve production and efficiency when there is a hiccup. One example is whether shops receive one car in the paint department every hour or five cars in one hour; the efficiency is totally different.

The graph below shows the benchmark and includes the amount of work for every phase of repair for the 2 to 3 Panels: BENCHMARK STATISTICS REPAIRS PER CATEGORY

% OF REPAIRS

2-3 PANELS

57,5%

PANEL DEPARTMENT PANEL REPAIRED

PANEL NEW

n. panel per repair

n. panel per repair

1,29

1,01

PAINT DEPARTMENT BODY FILLER

PRIMER

n. panel per repair n. panel per repair

1,28

1,43

WET ON WET SEALER

n. panel per repair

1,01

BLANDING

PAINTING

n. panel per repair n. panel per repair

0,40

2,70

For repairs of this size, the FixLine process uses only three steps to repair cars: • First step: the stalls for disassembling and panel repair. These two phases are done by one or two technicians (it changes from country to country); the cars remain in the same stall for both phases.

• Second step: the FixLine Conveyor is the phase in which the process for body filler takes place and includes: primer, masking, painting and drying, unmasking and polishing (this is only in the European model because it is the one who prepares the car with primer).

• Third step: the stalls for reassembling.

Note: the stalls used for disassembling, panel repair and assembling the 2.3Panels, are not the same stalls used for larger 4+Panel repairs.

The FixLine Conveyor, depending on the volume of repairs in the shop, could be used for 2.3Panels as well as for more than 4+Panels. When the business plan doesn’t justify two FixLine Conveyors due to volume, only one can repair both types.

This encompasses working with a group of repairs with 2.3 panels and 4+Panels together with one FixLine.

A brief of FixLine Conveyor KombiTron:

8

6.

THIRD PROCESS IS FOR “4+P - MORE THAN 4 PANELS DAMAGE (LARGE REPAIRS)”

The “4+Panels” are roughly 20% of the total market of damage. These repairs normally involve frame or pull machine work. They have multiple panels that need cuttings and welding and the time for the reparation is long with a big gap between every repair, so it is quite impossible to have a regular flow in production.

The graph below shows the benchmark and includes the amount of work for every phase of repair for the “4+Panel”: BENCHMARK STATISTICS REPAIRS PER CATEGORY

% OF REPAIRS

4 AND MORE PANELS

19,5%

PANEL DEPARTMENT PANEL REPAIRED

PANEL NEW

n. panel per repair

n. panel per repair

2,56

2,56

PAINT DEPARTMENT BODY FILLER

PRIMER

n. panel per repair n. panel per repair

2,41

2,91

WET ON WET SEALER

n. panel per repair

2,56

BLANDING

PAINTING

n. panel per repair n. panel per repair

0,97

6,09

The process used for 4+Panels is in three steps, similar to the process used for the repairs of “2.3Panels,” but the stalls and the technicians are different from those used in 2.3panels. The reason is that the two jobs are completely different when it comes to time, skills, tools and equipment, and organization.

A brief showing the stalls for 4+Panels:

9

7. HOW SYMACH DESIGNS A NEW BODY SHOP Every body shop has the same focus-repairing vehicles. However, because the mix of repairs is different with 1Panel, 2.3Panels, and 4+Panels, every project must be suited to the specific body shop because each warehouse is different and the number of repairs per day varies.

To help understand this concept, let’s say the first body shop is spending eight hours on average per repair in body work because of a higher percentage of larger repairs. A second shop has mostly smaller repairs and spends an average of two hours in body work per job. Suppose that the target for the first shop is 10 jobs per day, so 10 stalls and 10 technicians are needed. The second shop only needs 2.5 stalls and 2.5 technicians to produce the same number of repairs per day.

For this reason, Symach determines the current data of the body shop and prepares an analysis with the company’s software, “LBP” (Layout and Business Plan). It automatically determines a new target for repairs; establishes a business plan; the number of stalls divided per phase; the number of technicians divided per role; the new working time divided per phase of repairs; the new cost in labour divided per phase; and the return on investment.

A brief of business plan:

FIXLINE CONVEYOR Every size of repair

NEW BODY SHOP CONFIGURATION

% OF REPAIRS

FixLine Regular & Large repair Paint department

PHASES OF REPAIR

100,0%

NUMBER OF REPAIRS PER DAY

10,0

NEW WORKSHIFT PER DAY

8:30

WINDOW TIME PER REPAIR

0:51

Total time per day for all repairs

45:17

1 PANEL REPAIRS REGULAR REPAIRS TIME PER PHASES TIME PER PHASES

LARGE REPAIRS TIME PER PHASES

AVERAGE TIME PER REPAIR

Total repairs per day

2,3

5,7

2,0

PERCENTAGE OF REPAIRS PER DAY

23,0%

57,5%

19,5%

BODY FILLER

0:34

1:07

2:01

1:10

PRIMER

0:38

1:06

2:08

MASKING

0:10

0:30

PAINTING

0:39

POLISHING

0:08

Total average time per repair and number of technicians

KPI PER WEEK

10

10,0

02:09

NUMBER OF TECHNICIAN NEEDED

NUMBER OF STALLS NEEDED

LAYOUT INDEX

NEW LABOR COST PER REPAIR COST PER PHASES

1,38

2

2

$

40,34

1:12

1,41

2

3

$

41,26

0:40

0:27

0,54

1

4

$

15,64

0:52

1:11

0:53

1,04

1

5

$

30,36

0:21

0:48

0:23

7

REGULAR REPAIRS

LARGE REPAIRS

0,46 TOTAL TECHNICIANS

1

TOTAL AVERAGE TIME PER REPAIR

TOTAL STALLS

$ 13,52 TOTAL COST PER REPAIR

03:58

06:49

04:06

5,0

7,0

Number of jobs per technician per week

$

141,11

8. LAYOUT AND PROCESS DESCRIPTION Symach will prepare a 3D layout, based on the data coming from the company’s software—LBP. The layout includes every phase of the repair process and the number of stalls are based on the number of repairs and the needs of a specific body shop.

Example of the layout in 3D:

In the layout above, the body shop can repair 20 repairs per day with FixStation (12); the repairs of 1Panel and the FixLine Conveyor KombiTron are marked from 2 to 7.

11

The Layout and Process

a) Step 0 Estimate stalls

The process begins from estimating stalls marked “0E,” where the car is estimated. For certain estimates, it might be necessary for the car to be disassembled. After this phase, the car is moved to the “stand by parking” area, to wait for the spare parts.

After the spare parts have arrived on-site, the cars are introduced as part of the daily planning, to be repaired the following day.

There are three different planning choices: one for the repair of 1Panel, one for the repair of 2.3Panels and another for the repair of 4+Panels.

b) Step X for: 1Panel

The repairs of 1Panel are planned to be repaired inside FixStation and all of the phases are carried out by only one technician with multiple skills.

c) Step 1 for: 2.3Panels and 4+Panels

The repairs of 2.3Panels are done in stalls marked 1A; the repairs of 4+Panels are done in stalls marked 1B.

This process doesn’t require changing the roles of the technicians, which is nearly impossible due to the time it takes to learn the appropriate skills.

In the stalls marked 1 (A and B), based on the amount of damage, the phases are: Disassembling (in case it wasn’t already done in the estimating stalls); Repairing panels; Body filler, (it could be done in stalls marked 1 or in FixLine stalls marked 2. It depends if it’s like the European model, where the “prep” applies body filler or if it’s like the Anglo-Saxon model, where the “body-tech” applies body filler).

When the body filler is applied in stalls marked 1, these are equipped with the Flydry robot. This permits the technician to work continuously on the same car because the body filler dries in less than two minutes and the application time is also reduced 60% because the technician uses the SPAP process.

Just to avoid a misunderstanding, in order for the body shop to cover the three phases of repairs, it can use one or two technicians with different skills. It is not necessary to change the current roles of the technicians. What is necessary is not having to move the car to a different stall because it is easier and more cost-effective to relocate the technician.

d) Step 2: The FixLine Conveyor KombiTron or SprayTron

There are two models of the FixLine Conveyor: - The first model has the capability to produce 10 repairs per day and includes one spray booth, model SprayTron, and one robot; it is for one painter.

- The second model can produce 20 repairs per day and includes one spray booth and one oven combined, model KombiTron, and two robots; it is for two painters.

12

The FixLine Conveyor (shown in the 3D image above) includes: the stalls for body filler, marked 2 (only in European model); the stalls for primer, marked 3; the stall for masking, marked 4; the spray booth SprayTron for painting, marked 5; the oven KombiTron for drying, marked 6; and the stall for unmasking and polishing, marked 7.

In the FixLine Conveyor, the car is loaded on a CarMover in the first stall marked 2 for the European model or in the first stall marked 3 in the Anglo-Saxon model (there are plates for moving the car on the rails). From this point, the car is moved stall after stall, pushing the car onto the CarMover, easily in about two seconds.

Working with the FixLine, the priority is to transfer the cars to the spray booth on time. For this reason, based on the amount of damage, multiple technicians can work on the same car. It is a teamwork system, rather than an individual one.

With the FixLine Conveyor system, the stalls for body filler (when the body filler is in the line) and primer are equipped with two independent Flydry robots. These robots permit the technician to work continuously on the same car because drying time is less than two minutes per panel. Also, by using the SPAP process, application time is reduced by 60%.

There are two robots, one inside the SprayTron for drying waterborne and the second one inside the KombiTron for drying clear. This allows two painters to complete one paint job every 20-30 minutes.

e) Step 3: Reassembling

The repair of 2.3Panels are assembled in the stalls marked 8A; the repairs of 4+Panels are assembled in the stalls marked 8B. For the assembling phase, as in step 1, the stalls for the repairs of 2.3Panels and repairs for 4+Panels are different. In this case, the reason is because the assembling time for the repairs of 2.3Panels is quite regular and it can guarantee a homogeneous flow for daily production; the repairs of 4+Panels have a big gap in time between one to the other.

f) Different Stalls in the Layout

The layout also includes additional stalls such as a carwash, detailing, aluminium booth, PDR, mechanic, and others, depending on the customer’s request.

A brief of FixLine Conveyor KombiTron:

13

9. ADVANTAGES In conclusion, there are numerous advantages working with the FixLine process: The Drytronic technology dries body filler, primer, waterborne and clear in less than two minutes per panel length.

The quality of drying is 100% finished immediately after the passage of the robot, permitting the car to be polished without waiting time.

The SPAP (Symach Paint Application Process) allows a reduction of more than 60% for application time for body filler, primer, waterborne and clear.

This process requires fewer painters. One painter using the spray booth SprayTron and robot can complete 10 jobs per day.

The drying robots permit the technician to work continuously on the same car without any interruption for flash off and drying.

The cost of drying in energy (gas and electricity) drops 70 to 90% compared to a conventional spray booth.

The FixLine Conveyor offers the ability to work with regular flow all day every day, using a limited number of technicians, compared to the conventional process.

The average key-to-key time is less than two days because it is only half a day for 1Panel; one day for 2.3Panels and three days on average for 4+Panel repairs.

The cost of repairs in labour can be reduced three to four hours because it takes less time to prepare and paint the car. In addition, the time to move the cars is reduced 80% because of the ability to work continuously and there are only three steps necessary for the entire process.

The total number of technicians is approximately 30% less than a conventional body shop to produce the same number of cars per day.

The total return on investment is normally about 18 months, when only considering the saving costs in labour, compared to a conventional body shop.

The shop requires at least 30% less area compared to a conventional layout to produce an equal amount of cars per day.

14

15

FLYDRY - DRYING ROBOT FOR PREPARATION BAY

ROBODRY - DRYING ROBOT FOR SPRAY BOOTH

DRYTRON - SMALL REPAIR AND POLISHING

EASYDRY - DRYING ROBOT FOR SPRAY BOOTH

SPRAYTRON - SPRAY BOOTH 16

KOMBITRON - SPRAY BOOTH PLUS OVEN

FIXSTATION - BOOTH AND WORKSTATION

CAR WASH AND DETAILING

CARMOVER - QUICKLY MOVING CAR

ALUMINUM BOOTH - PERFECT ALUMINIUM REPAIR

DRYBOX - THE FAST OVEN FOR PARTS ON STANDS

BASETRON - PREPARATION BAY 17

SHOPLINE / LIGHTS SYSTEM / PAINT MIXING ROOM

WHEEL STATION - SOLUTION FOR RIM REPAIR

VACUUM SANDING SYSTEM - A NEW EXTRACTION UNIT

CAR LIFT

MULTI BOX - ONE SOLUTION FOR ALL SERVICES

LIFT & PULL

18

Thank you for the time you spent learning about the FixLine process.

19