Six Sigma in the Composite Materials Industry

1. Applications of Six Sigma In The Composite Materials Industry 12th IAQG General Assembly Meeting Melbourne April 2007 Cytec Engineered Materials Business Confidential and Proprietary

2. What is Six Sigma? A philosophy: • Scientific methods - bridges education, perspective & experience. • The acquisition and utilization of knowledge driven by Critical Thinking. A goal: • A mathematical expression to describe the process and predict results: Y = f(x) And a methodology: • A multi-phase process, rooted in statistics, for identifying sources of variation, reducing and controlling that variation to ensure improvements stay in place. Six Sigma at Cytec Implementation at CEM • Cytec Corporate Steering Committee • Monthly Leadership Team meetings • Continuous Improvement Leader • 5 master black belts • 65 trained blackbelts • 103 trained greenbelts • All managers trained in Six Signa • External resources used to supplement CEM resources as required. A successful business strategy to drive continuous improvement using a data driven process. Cytec Engineered Materials Business Confidential and Proprietary

3. Progression of a Project • Define problem statement. • Develop thought map. • Develop process map with inputs and outputs. • Develop data acquisition strategies: • Measurement System Evaluation (MSE). • Components of Variation (COV). • Design of Experiments (DOE). • Control key variables and move on to another theory on the thought map. • Develop a mathematical understanding of the problem in terms: • y=ƒ(x1,x2,x3,…xn) • where n<=6 Cytec Engineered Materials Business Confidential and Proprietary

4. Where Are Six Sigma Methods Used? • Measurement System Improvements • Improved, more reliable results leading to better decisions • Elimination or reduction of unnecessary testing • Technical Service Problem Solving • Product Qualifications • Raw Material Resite Qualifications • New Product Development • New Process Development • Operations Problem Solving • Product Variation Reduction • Waste Reduction / Cost Reduction • Productivity Improvements Cytec Engineered Materials Business Confidential and Proprietary

5. Variation Reduction • Six Sigma tools support a multi-phase process for identifying sources of variation in a process, minimizing that variation and establishing control plans to ensure the improvements stay in place. • Sources of variation: • Material - Raw materials and intermediates • Machine - Performance and repeatability • Methods - Instructions and interpretation • Workforce - Person to person, shift to shift • Measurement - Trust those outputs? Gage R&R (MSE) • Environment - Cultural or maybe phase of the moon Variation is the enemy - Six Sigma is a proven process for identifying and reducing sources of variation. Cytec Engineered Materials Business Confidential and Proprietary

6. Variation Off Target LSL USL USL LSL LSL USL On Target Reduced Variation Reducing Variation - The Nature of the Problem LSL = Lower spec limit USL = Upper spec limit Center the Process Reduce the Spread THE STATISTICAL VIEW OF A PROBLEM Cytec Engineered Materials Business Confidential and Proprietary

7. Cost Reduction • It’s not always about statistics • Recent case demonstrated excellent use of Six Sigma “critical thinking” • Thought maps • Process maps • Analysis showed that the water we were discharging was actually cleaner than the water we were receiving from the utility company. • Implementation of a neutralizing unit and recycling resulted in over $250K savings – less than one year payback on project and environmentally friendly. Cytec Engineered Materials Business Confidential and Proprietary

8. Six Sigma / Lean to Drive Productivity Improvements • Six Sigma Improvements • Reduced testing • Improvements in raw materials • Reduced rework • Analysis via thought maps and process maps • Lean Improvements • Value stream mapping • Process Simplification • Set-up Reduction • Standard Work Cytec Engineered Materials Business Confidential and Proprietary

9. Six Sigma / Lean to Drive Productivity Improvements A combination of the approaches makes use of the tools and achieves the greatest results • Examples • CA Product - Through-put increased from 12K lbs./month to 16K lbs./month • Winona Product – Increased production rate from 5 to 32 lbs./hr • Wrexham Product – Increased output from 12 to 33 units/day Cytec Engineered Materials Business Confidential and Proprietary

10. Summary • The widespread adoption of composite materials in aircraft structures makes reduction of variation and costs through continuous improvement critical. • Six Sigma methods are an essential part of the continuous improvement toolbox. • Critical thinking skills required for successful Six Sigma deployment are as, if not more, important that the analytical techniques. • Many examples of variation reduction and productivity improvements within CEM – all ultimately benefiting the customer. Six Sigma Is Critical To The Continuous Improvement Process Essential To Support High Composites Usage In Aircraft Cytec Engineered Materials Business Confidential and Proprietary