DANA SPICER OFF-HIGHWAY PRODUCTS DIVISION NAMED FINALIST IN OPERATIONS RESEARCH AND MANAGEMENT SCIENCE AWARD COMPETITION (May 17, 1999)

"We're very proud of the fine efforts of our Brugge, Belgium facility in advancing so far in this very prestigious competition," said Nick Cole, president, Dana Off-Highway Systems Group. "It is an excellent reflection of our group's team approach to ongoing improvement of product quality and performance."

The management team of Nicolas DeSchuyter, director of operations, Spicer Off-Highway Products Division, Brugge, Belgium, and Rony Cremmery, materials and MIS manager, Spicer Off-Highway Products Division, Brugge, Belgium, teamed with Professor Nico Vandaele, University of Antwerp, and Professor Marc Lambrecht, K.U. Leuven, Belgium, to submit a research paper entitled "Improved Lead Time and Scheduling Performance at Spicer Off-Highway Products Division - Brugge, Belgium".

The research paper details how in 1993 the facility (then known as Clark-Hurth Components) began to improve its operations. Today, as Spicer Off-Highway Products Division of Dana Corporation, the operation has greatly expanded.

By using the analytical tools of operations research the division became more efficient and cost effective. Results of this effort included a 27% increase in productivity, a reduction factor of two to three in manufacturing lead times, and a workforce reduction of 42%. Operating costs were reduced and the division is now profitable.

"The results proved that the right combination of operations research tools creates a distinct competitive advantage," said Rony Cremmery, manager materials and MIS, Spicer Off-Highway Products Division, Brugge, Belgium. "Additionally, the insights we gained from this process are applicable to a wide range of manufacturing organizations."

Since 1971 the Franz Edelman Award Competition has rewarded operations research and management sciences projects that resulted in significant, verifiable, and quantifiable impact on the client organization.

Spicer Off-Highway Products Division, Dana Corporation, was one of seven Franz Edelman Award finalists that included: Ford Visteon, U.S. Department of Energy at Pantex, British Telecommunications, AT&T, IBM, and Towers Perrin. All finalists presented their work on May 2, 1999 in Cincinnati, Ohio, at a special meeting of the competition's sponser, the Institute for Operations Research and the Management Sciences (INFORMS).

IBM was named winner of the 1999 Franz Edelman Award for their research entitled "Extended Enterprise Supply Chain Management at IBM Personal Systems Group and Other Divisions". They received a $10,000 first prize.

INFORMS serves the scientific and professional needs of operations research and management science professionals, and the institutions and organizations they serve, by publishing journals desribing the latest methods and applications and by organizing professional conferences designed to advance the development and dissemination of this information.

Dana Off-Highway Overview
Dana's Off-Highway Systems Group is composed of Spicer Off-Highway Products Division, Spicer Agricultural Axle Division, Spicer Specialty Axle Division, Spicer Off-Highway Axle Division, Spicer Outdoor Power Equipment Components Division, Spicer Off-Highway Products Division - South America, and the Gresen Hydraulics Divisions in North and South America.

The Off-Highway Systems Group consists of 15 manufacturing operations serving 30 countries and two global distribution centers and 20 authorized service centers serving 117 countries. Products include a diverse mix of Spicer® off-highway and on-off- highway axles and brakes, powershift transmissions, transaxles, electronic controls, torque converters, and replacement parts and service. Additionally, the group manufactures a variety of Gresen® fluid power components, including pumps, motors, control valves, filters, and electronic controls.

The Group's product offering, along with driveshafts, hose and fittings, and additional components from other Dana units, provides unparalleled capability to design complete mechanical and hydraulic systems for off-highway and on-off-highway vehicles. Market segments served include construction, agriculture, mining, forestry, material handling, specialty chassis, outdoor power equipment, and leisure/utility vehicles. Off-Highway Systems Group sales in 1998 approached $1 billion.

Dana Corporation is one of the world's largest independent suppliers to vehicle manufacturers and the aftermarket. Founded in 1904 and based in Toledo, Ohio, the company operates some 330 major facilities in 32 countries and employs more than 86,000 people. The company reported sales of $12.5 billion in 1998. Dana's Internet address is http://www.dana.com.

The Institute for Operations Research and the Management Sciences (INFORMS) is an international scientific society with 12,000 members, including Nobel Prize laureates, dedicated to applying scientific methods to help improve decision-making, management, and operations. Members of INFORMS work primarily in business, government, and academia. They are represented in fields as diverse as airlines, health care, law enforcement, the military, the stock market, and telecommunications.