For the NPD Team Engineering Viewpoint….

1. For the NPD Team Engineering Viewpoint…. Engineering is working very hard to produce the very best machines as fast as possible. This is both design and development work. It is impossible to put together timelines because Engineering does not know how long the development cycle will take. Engineering does know that to produce the machines as fast as possible – the parts need to arrive as quickly as possible. Engineering used to have TOP priority at Mokina for all of our parts. Now the parts are taking too long to manufacture. We understand that Production parts are coming before our parts. When we kick off a part – we need the supply chain team to work whatever it takes (overtime included) to make sure the parts are here as soon as possible. Once we kick off a part - Engineering has a good understanding on how long it “should” take to make a parts with the highest priority. Purchasing used to kick off the parts kicked off immediately with $0 priced purchase orders– quoting parts is taking too much time and is delaying our projects. Engineering makes everything a RUSH – so all the parts come in as quickly as possible. Purchasing’s responsibility is to Buy Parts… supply chain should not be loosing focus by being concerned about timelines

2. Engineering is working very hard to product the very best machines as fast as possible…. The supply chain team is just as committed to make sure the NPD team can succeed in all of the new product development activities. Our team and our suppliers are working overtime to make sure we can do all that can be done to ensure success.

3. Sourcing Miracle NPD INITIAL DESIGNS NPD FINAL DESIGNS Eng. needs part quick – ASAP. Per engineering – part should be done in 5 days No agreed to an “Initial Timeline” - no commitments for print completion No agreed to “End Date” Then the parts may be completed in 10 days SO PER ENGINEERING THE PROJECT IS LATE BY 5 DAYS THEN…. Management Team Crisis… Project Late!!! “If only sourcing got the parts in sooner… “ “If only we ordered parts and not lost the xx days for quoting we wouldn’t have the crisis”

4. Sourcing Miracle NPD INITIAL DESIGNS NPD FINAL DESIGNS Example – “NPDmax 5000” March 1st Prints “Sort of” due3/8 April 8th Multiple valid design issues and computer issues Prints Complete 4/8 No original timeline…The end date committed to the project is not renegotiated with management…. Sourcing is asked to “make up the time”… to a timeline that is not defined… then… if sourcing can not… “Project is one month behind… slippage is due to delivery delays in major components… production orders are taking a higher priority over new product development work”

5. Sourcing Miracle NPD INITIAL DESIGNS NPD FINAL DESIGNS • What Sourcing is up against for NPD parts..… • Can not plan when prints are coming • Can not plan capacity at suppliers to be ready for components • Can not communicate how long a part will take to be manufactured to engineering • Has no idea what is the critical path items and thus has to react to ALL parts as emergencies • Have no idea what are the “Critical” NPD parts, the “Critical” Engineering parts (ieNortura, Piston Pump), or which parts are to be considered as the “less important” production parts • Not knowing if price is or isn’t important • Expected to work overtime by the team and at the suppliers to produce as quickly as possible • Being left with “no mater what we do.… the parts will be late”

6. NEW PARADIGM – Project Management Final Launch Design Prototype Sourcing • Using the team approach, Engineering and Sourcing come up with a detail timeline before project beginning • Have set due dates for both prints and parts • The timeline gives adequate time to design AND source… and slack time for the unforeseen issues • THINGS HAPPEN – if Engineering or Sourcing has issues – overtime or a revised timeline has to bedone and reviewed with management…. • Engineering and Sourcing together communicates updates through program management to the organization