Project GEM at a Glance

1. Project GEM at a Glance Part of Platform Strategies Presenter: Brandon Volner/Norman Cheung Date: February 2013

2. Heil’s Integrated Platforming • Expected Heil Benefits • Hard Savings • 20% Productivity Gain • 5% Direct Material Savings • 25% - 40% Inventory Reduction • Velocity Benefits • 30% Lead-time Reduction • 50% Reduction Time To Market • Complexity Benefits • 28 RCV Models to 6? • 1 Control Architecture • 40+% Reduction Part Numbers? • Reduced Fixed Costs From Scheduling Procurement Testing NPD Doc control Simplification • Warranty Reduction (?) + GUIDED SELLING TO PRECLUDE INCOMING UNFUNDED COMPLEXITY

3. Original Objectives • Back in April/May 2012 the birth of Project GEM started with the following objectives in mind: • Phase 1: Technical PoC Validate SAP, JDE, Endeavor Commerce and PTC integrate with each other, while receiving best practices and direction to scope out Phase 2. • Phase 2: HalfPack 28 Yard PoC Create a limited, but complete process from Pro- E/Configurator through production with a confined option set for the 28 yard HalfPack. • Phase 3: Complete FEL Product family Create a limited, but complete process from Pro- E/Configurator through production with a confined option set for the 28 yard HalfPack.

4. Leading Action Items(Conceptual - bypass ECO release process) • Engineering Bill of Material (BOM) Restructure: • Break down existing HalfPack 28YD Eject BOM structure into “modules” • Eliminate Drop/Add items (require both redesign and restructure) • Re-order/reshuffle components based on new restructure modules • Create new restructured modules in 3D/ProE • Re-order/reshuffle components based on new restructure modules • Define an absolute reference point for consistent module orientation and placement (and to set up for Skeleton model) • JD Edwards (JDE) BOM Restructure: • Create BOMs for new restructured modules • Eliminate Drop/Add items • Replace Phantoms with “Make” where ever applicable • Redefine Stocking Type, G/L Class, Line Type • Potentially eliminate NRM items • Configure a “Production-grade” Proof of Concept (PoC) Truck • Generate PoC Work Order • Eliminate Drop/Add • Redefine or eliminate Sales Part Numbers (SPNs)

5. The Original PoC Quote • Non-CUSTOM dealer Commercial FEL Half Pack • 28 cubic yard body • Mack LEU chassis • Mack diesel engine with Allison transmission • Front mounted single pump • Optional 24” toolbox and 60 gallon washout tank

6. The Break-down (PoC Picklist) • As result of joint effort among the Half Pack production line, at least 65 (and counting) standard modules were defined based on floor experience and potential variability of options within each module • Note there are more optional modules than standard modules • For more detail go to PoC Picklist spreadsheet PocPicklist

7. BOM Structure Hierarchy - Today • Refer to 28YD HP Eject BOM spreadsheet

8. BOM Structure Hierarchy - Tomorrow • Refer to 28YD HP Eject BOM spreadsheet • Advantages versus Today’s BOM Structure: • More flexible (add-on modular approach) • More accurate “real” cost • More streamlined work orders • More effective “real” time

9. PoC 3D/ProE with Restructured Assembly Tree • Refer to video on exploded FEL Master

10. Moving Target • During project GEM restructuring progress the following events have or will have been taken place: • Product rationalization nullified • CNG restructured into sub modules in various matrices • Electrical restructured into modules • Side Saddle (Streetwise) hydraulics to be implemented • New FEL matrices introduced • Next generation AFL to be “platformed” • New modeling and assembly standards to be introduced • Updated start parts with datum nomenclature and layering schemes • ModelCheck to drive model consistency • Skeleton models and Simplified Representations to be created at top level assemblies • Platforming Strategies workshop and meetings • Essentially a 28YD Half Pack configured today is structured quite differently compared to the original PoC quote in April/May 2012

11. Development Plan Revisited Due to the dynamic nature of ongoing changes the following items originally identified by team GEM may have to be redefined to include Platform Strategies and Modeling/Assembly Standards • Development of a plan for implementing 28 ydHalfPackPoC that includes: • Scope • Project Timeline • Resource requirements • Budgeting requirements

12. Thank You!

13. Current Production vs GEM BOM28YD HP Comm Eject w/ Mack LEU Diesel & Front Mounted Pump for Dealers For more details refer to JDE GEM.xlsx spreadsheet

14. What’s Left to Do • To build a 28YD HP Comm Eject w/ Mack LEU Diesel & Front Mounted Pump for Dealers and not keep up with changes: • Engineering 3D Restructure • ProE BOM restructure (roughly 10% left, mainly body breakup) • Create new drawings for new BOM structures (100% left, approx 66 modules) • JDE BOM Restructure¥ • Create new p/ns in ItemMaster • Create new BOMs in Mfr BOM (no routing and labor/time study) • Configurator Restructure¥ • Manually create SO from Poc quote • Manually generate WO from PoC quote ¥Note downstream effects from Engineering to other departments

15. Example of What to Restructure:Oil Tank Assembly 020-2474 • 5 levels deep under SPN • 49 line items • Eliminate Level 1 Phantom • Eliminate NRM • 3 new parts and 3 new BOMs (including converting 2 Phantoms) • GEM = 3 levels deep (cf to 6)

16. Example of What to Restructure:Mack LEU Cab Kit 254-4794-103 • 2 levels deep under SPN • 36 line items • 7 new parts and 7 new BOMs (including converting 6 Phantoms) • GEM = 2 levels deep (cf to 3)

17. Challenges • How to overcome on-the-fly BOM changes? • How to validate WO from JDE?