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3. 1.1.1 Strategic Planning Purpose: to define and deploy the most important strategic priorities to drive performance improvement. STRATEGIC PLANNING Data from (6) Month Review SWOT Deployment Meetings Planning Session Preparation 1.1.2- Leadership Communication (Lisa) 1.1.3- Organization Performance (Chuck) 1.1.4- Continuous Improvement (Anthony) 1.1.5- Workforce Development (Kelly) (6) Month Review of revised or new “Strategic Planning” Goals, Targets and Objectives. Employee Meetings (4) Supplier Meetings (if needed) Customer Meetings Department and Individual Goals (if needed) Action Plans Recognition Communication PAC 13 assignments Financial Analysis Operations Analysis Technology Analysis Customer and Markets Analysis Competitive Analysis Standards – AS9100, NADCAP and SEA/LES SWOT Completion From- Customers, Suppliers, and Employee Skills Assessment Customer Interviews/Surveys Employee Interviews/Surveys Supplier Interviews/Surveys SWOT and Business Annual Report Vision Review Mission Review Targets & Objectives Value Stream Mapping (if needed) Review Champions Review Process Owners Review Process Maturity Please read and keep these questions in mind as you complete the attached SPW worksheets. 1.1.1 Strategic Planning Process – How does your organization accomplish its strategic planning? What are the key process steps and who are the participants? How do you ensure that the process addresses strengths, weaknesses, opportunities, and threats; major shifts in technology, markets, and competition? How are standards such as AS9100 integrated into the planning process? What are your key strategic goals and timetables? Page 3

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5. 1.1.1 Strategic Planning- Preparation • Preparation will encompass the following information gathering- • Financial Analysis Report from the CFO • Operations Analysis Report from the COO • Technology Analysis Report from the General Manager (are we a “Front Runner”) • Competitive Analysis Report (based on surveys below) • Review of Standards (QAM)- • AS9100 Rev. C • NADCAP Specifications for Special Processes • SEA/LES • Surveys used for information gathering- • Customer Interview/Survey (see page 6) • This Survey should be sent to customers within the top 5% of the customer base and repeated among selected customers to develop better business trends. • Supplier Interview/Survey (see page 7) • This Survey should be sent to suppliers within the top 5% of the supplier base and repeated among selected suppliers to develop better business trends. • Employee Feedback Forms (see page 8) • This Survey should be taken from a random sample of 8 to 10 employees involved in the day to day operation of the company. • Leadership Processes Self-Assessment Survey (see page 9) • Self-Assessment Survey is to be completed by all members of the Lean Management Team and/or Process Owners. PAC 13 assignments Financial Analysis Operations Analysis Technology Analysis Customer and Markets Analysis Competitive Analysis Standards – AS9100, NADCAP and SEA/LES Page 5

6. Customer Interview/Survey Page 6

7. Supplier Interview/Survey Page 7

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9. Leadership Processes Assessment Page 9

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11. 1.1.1 Strategic Planning- SWOT • SWOT will utilize the following gathered information- • Financial Analysis Report from the CFO • Operations Analysis Report from the COO • Technology Analysis Report from the General Manager (are we a “Front Runner”?) • Competitive Analysis Report (based on surveys below) • Review of Standards- • AS9100 Rev. C • NADCAP Specifications for Special Processes • SEA/LES • Surveys gathered- • Customer Interview/Survey (see page 6) 5 (Min.)Completed • This Survey should be sent to customers within the top 5% of the customer base and repeated among selected customers to develop better business trends. • Supplier Interview/Survey (see page 7) 5 (Min.)Completed • This Survey should be sent to suppliers within the top 5% of the supplier base and repeated among selected suppliers to develop better business trends. • Employee Feedback Forms (see page 8) 8 (Min.)Completed • This Survey should be taken from a random sample of 8 to 10 employees involved in the day to day operation of the company. • Leadership Processes Self-Assessment Survey (see page 9) 1 per Process Owner • Self-Assessment Survey is to be completed by all members of the Lean Management Team and/or Process Owners. SWOT Completion From- Financial Analysis Report Operations Analysis Report Technology Analysis Report Competitive Analysis Report Review of Standards Customer Interviews/Surveys Employee Interviews/Surveys Supplier Interviews/Surveys Leadership Processes Self-Assessment Page 11

12. Complete as Tentative SWOT Analysis Prior to Planning Session. Page 16

13. Complete as Tentative Strategic Goals Prior to Planning Session. Page 17

14. Complete as Tentative Strategic Goal Planning Prior to Planning Session. Page 18

15. Use as it applies to the SWOT and Planning Session Preparation Page 21

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17. 1.1.1 Strategic Planning- Planning Session Planning Session Deployment Meetings 1.1.1 Strategic Planning- Planning Session SWOT and Business Annual Report Vision Review Mission Review Targets & Objectives Value Stream Mapping (if needed) Review Champions Review Process Owners Review Process Maturity Employee Meetings (4) Supplier Meetings (if needed) Customer Meetings (if needed) Department and Individual Goals (if needed) Action Plans Recognition Communication Go over SWOT and Annual Business Report (open discussion after report). Review Company Mission (open discussion after review) Review Mission (open discussion after review) Review Targets and Objectives (open discussion after review) Review Champions (open discussion after review) Review Process Owners (open discussion after review) Review Process Maturity (open discussion after review) Create a value stream of any problem area (if needed) If needed, discuss any matters or issues that arise in deployment. Address these matters or issues and how they relate to (1) thru (6). Revise Goals for Deployment Meetings Page 23

18. 6. SUPPLIERS' SPECIFIC INPUTS Internal or external suppliers' specific inputs -materials, labor,, equipment, software, info. 7. PROCESS STEPS Current steps or tasks involved in the process and job roles. List in sequence, then develop flowchart. 8. PRODUCT / SERVICE OUTPUTS All products and service outputs given to internal or external customers Supplier Names Specific Inputs Steps 1. Review traveler 2. Layout cardboard pieces according to template 3. Select appropriate size tape 4. Sharpen scissors 5. Tape each joint in specified sequence 6. Fold each joint 7. Stack completed boxes in basket, up to 50 per basket 8. Fill in items 6-8 on traveler and sign 9. Place on cart 10. Email shipping re: batch completion 11. Record shift results on work log and email to accounting 12. Receive acceptance reply from accounting Job Role Line/cell lead Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Line lead Line/cell lead CustomersShipping &Accounting Shipping Specific Outputs Completed traveler Batches of 50 boxes in baskets Email Notification Accurate measurement logs each shift ProductionControl Traveler with box size and color specifications Cardboard sheets Clear adhesive |" tape or 1" tape depending upon box size Scissors Baskets Template Work instructions Purchasing Accounting Quality Dept. Dept. Manager... Process Worksheet Example Date 10.14.XX 1.Name of the Process ___Box Assembly Sub-process of Manufacturing Value Stream Owner Joe P. 2.Customer Requirements - what each customer or segment needs/expects from your process: Shipping: Quality boxes in batches of 50. with complete paperwork; adhering to shipping schedule; Accounting: Accurate complete traveler 3.Business Requirements - things the business demands of the process: Within budget, adhering to schedule, no scrap, safety 4.What triggers the start of the process: Receipt of order from Production Control End of process: Acceptance of completed batches of 50 boxes to Shipping 5. Measures of process effectiveness or efficiency are: Assembly cycle time: $ value of scrapped materials; labor costs Example Use and Format Only Page 24 Managing Process Improvement I

19. Use as it applies to either the Planning Session or Deployment Meeting(s) Page 25

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21. 1.1.1 Strategic Planning- Deployment Meeting(s) Planning Session Deployment Meetings 1.1.1 Strategic Planning- Deployment Meeting(s) SWOT and Business Annual Report Vision Review Mission Review Targets & Objectives Value Stream Mapping (if needed) Review Champions Review Process Owners Review Process Maturity Employee Meetings (4) Supplier Meetings (if needed) Customer Meetings Department and Individual Goals (if needed) Action Plans Recognition Communication • Through the Deployment Meeting(s) share “Improvements” based on- • SWOT and Annual Business Report • Company Mission Review • Targets and Objectives • Review of Champions • Review of Process Owners • Review of Process Maturity • Note- • The Deployment Meeting(s) can be a further outlet for ideas that may help to refine the goals of the Planning Session. If needed, a Planning Session shall be reconvened to consider these ideas to see how they dovetail into the goals of the coming year. • A new abbreviated Deployment Meeting(s) will be schedule to share the goal change(s). Page 27

22. 6. SUPPLIERS' SPECIFIC INPUTS Internal or external suppliers' specific inputs -materials, labor,, equipment, software, info. 7. PROCESS STEPS Current steps or tasks involved in the process and job roles. List in sequence, then develop flowchart. 8. PRODUCT / SERVICE OUTPUTS All products and service outputs given to internal or external customers Supplier Names Specific Inputs Steps 1. Review traveler 2. Layout cardboard pieces according to template 3. Select appropriate size tape 4. Sharpen scissors 5. Tape each joint in specified sequence 6. Fold each joint 7. Stack completed boxes in basket, up to 50 per basket 8. Fill in items 6-8 on traveler and sign 9. Place on cart 10. Email shipping re: batch completion 11. Record shift results on work log and email to accounting 12. Receive acceptance reply from accounting Job Role Line/cell lead Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Line lead Line/cell lead CustomersShipping &Accounting Shipping Specific Outputs Completed traveler Batches of 50 boxes in baskets Email Notification Accurate measurement logs each shift ProductionControl Traveler with box size and color specifications Cardboard sheets Clear adhesive |" tape or 1" tape depending upon box size Scissors Baskets Template Work instructions Purchasing Accounting Quality Dept. Dept. Manager... Process Worksheet Example Date 10.14.XX 1.Name of the Process ___Box Assembly Sub-process of Manufacturing Value Stream Owner Joe P. 2.Customer Requirements - what each customer or segment needs/expects from your process: Shipping: Quality boxes in batches of 50. with complete paperwork; adhering to shipping schedule; Accounting: Accurate complete traveler 3.Business Requirements - things the business demands of the process: Within budget, adhering to schedule, no scrap, safety 4.What triggers the start of the process: Receipt of order from Production Control End of process: Acceptance of completed batches of 50 boxes to Shipping 5. Measures of process effectiveness or efficiency are: Assembly cycle time: $ value of scrapped materials; labor costs Revise Process Worksheet- based on new ideas discussed on Deployment Meeting(s). Page 28 Managing Process Improvement I