P R O D UCT LEADERS HIP M EANS M ANU FAC T U RING EXC ELLENC E “  My job is to deliver  quality  products. With  me, it’s personal.” 21 Like thousands of employees through- out BorgWarner’s worldwide network of  facilities, Regina Dunagan takes her job  personally. Their commitment to continu- ous improvement translated into a 13%  increase in sales per employee in 2004. A team leader in a cell that makes clutch  packs, Regina’s top priority is assuring  product quality. She knows that manufac- turing is the backbone of the company’s  success and that product leadership  means being the best at what we do. At  the end of her day, she wants to know that  she did her best, and that her fellow work- ers feel the same way. In her 21 years with the company’s trans- mission business, Regina has seen a lot of  changes. The most dramatic is the move  from manual assembly to the flexibility of  today’s automated processes. She works  on products that move all over the world.  Through training, new equipment and  production optimization techniques, out- put of her plant has doubled over the past  few years.  Manufacturing flexibility is key. In the com- petitive auto industry, productivity improve- ments need to outpace cost increases and  low value-added manufacturing processes  are outsourced. Our people know that  better productivity helps secure the future  of the company and that our compensation  systems reward them for their success. Clutch Pack  Assembly Gemini Chain  System 4WD  Transfer Case 20 Team Leader BorgWarner Transmission Systems Bellwood, Illinois, USA Regina Dunagan A disciplined, robust process at BorgWarner tracks such critical metrics as cost, quality and  safety. The process challenges each operation to account for, cover and neutralize all their  costs, both on the positive and negative sides. This process addresses the need to offset  increasing costs for commodities and employee welfare, and price pressures inherent in a  competitive marketplace. Safety Quality Cost Savings BorgWarner GOALS / BENCHMARKS JAN FEB MAR 2004 %