Panel Discussion 2

1. .) Panel Discussion 2 Sturm Ruger- Mike Butler Pryer Machine and Tool - CaylaBrumble New Hampshire Ball Bearings - Donna Cadrette & Sheila O'Brien toolingu.com

2. .) Sturm, Ruger & Co., Inc. Tooling U User Group Discussion Las Vegas September 12, 2011 toolingu.com

3. Sturm, Ruger & Co., Inc. • Sturm, Ruger, Co., Inc. – Made in America Manufacturer of Fine Quality Sporting Firearms • Mike Butler, SPHR, Director of Human Resources • Responsible for the Direction and Administration of all HR (Benefits, Compliance, Employee Relations, Organizational Development and HRIS) Environmental, Safety, Health & Security • Ruger Firearms- Locations • Corporate HQ- Southport, CT • Manufacturing Locations- Newport, NH, 890 Associates, Revolvers & Long Guns • Prescott, AZ- 550 Associates, Auto Loading Pistols

4. Sturm, Ruger & Co., Inc. • Ruger Financial results, then and now • 2006 • Gross Sales 167MM • Operating Income- (280,000) • Net Income (after income tax)- break even • 2010 • Gross Sales- 255.1MM • Operating Income- 43.4MM • Net Income (after income tax)- 28.2MM • 2011 (first 6 months) • Gross Sales- 155.1MM • Operating Income- 29.5MM • Net income (after income tax)- 18.7MM

5. Sturm, Ruger & Co., Inc. • HOW’D WE DO THAT??????? • 2006 Operating Philosophy • Management driven, large batch, push, piecework production system had created a culture where learning and associate engagement was not valued. • 2007 Lean Transformation Journey Begins • Kanban (pull), Single piece flow, participative, Lean (super cell) production system • Learning culture development- Associate engagement and participation, processes require folks to actually “know” the operations. Tooling U System and Leadership Development • Key Business Objectives • 100% fill on time • 20% operating profit

6. Sturm, Ruger & Co., Inc. • 12X year inventory turns • 33% sales from profits on products launched within 2 years • New Product introductions • New product platform- 6 months • New product, concept to box- 12 months • Key considerations for Tooling U online training • No classroom instructor, no actual classroom time • Less time out of the workplace • No seminar type environment • Training could be done at home • Could apply technical knowledge in the workplace immediately • Good real time reportable, record keeping of all training and rate of success

7. Sturm, Ruger & Co., Inc. Regular monthly reporting of utilization data User access able reporting on utilization information as required. Design and Implementation of Tooling U training system Developed new labor classification system for all positions Classes based upon duties and accountabilities Developed a mandatory and elective curriculum for each classification Assigned each individual into the appropriate classification Uploaded all assignments into each Tooling U to appropriate curriculum Assigned a minimum number of courses successfully completed by each individual each month Conducted regular monthly and special ad hoc audits regarding utilization

8. Sturm, Ruger & Co., Inc. Learning Objectives and Desired Outcomes Technical Knowledge of CNC machining skills learned Compliance issues learned and documented Group and Team Leader leadership training Trades knowledge learning Other training enhancements Extensive on the job training using JI Some classroom training- Programming offsets, programming CMM, Gauging Lessons Learned from the Tooling U implementation Take implementation a step at a time, no multiple implementations simultaneously Develop a system of agreed upon accountabilities prior to implementation.

9. .) Tooling U User Group Discussion Las Vegas September 12, 2011 toolingu.com

10. Welcome • Cayla Brumble - Director of Training • Established in 1965, PRYER is a privately held corporation • Manufacture parts for business, commercial, military planes and the space program. • Fabricate aerospace components - composite, sheet metal and machined parts. • We are vertically integrated. • 120 employees with two plant locations in Oklahoma

11. In Aerospace we are held to a high level of training and verification of training. • FAA (Federal Aviation Administration) guidelines and audits • Customer audits with required training verification • Industry certifications with audits and proof of required training • Our training program was designed based on our company need for skilled employees. • We combined online training, instructor-led training, and hands-on knowledge. Our motivation for blended learning was to get our unskilled employees up to speed faster and cross train current skilled employees in other production areas.

12. We opted for Tooling U it helped us solved an immediate challenge of two locations and two shifts. • In 2008 we rolled out Tooling U. • Rollout of Tooling U - Our roll out team, consisted of production employees. They were trained first and we uncovered a few challenges before training other employees. • Employees with no computer skills • Employees with English as second language

13. We have set up a Tooling U computer room, our production employees are able to go and take their classes. • Headphones for employees who learn with audio • Vocabulary words were printed, laminated and kept in the lab • Some employees complete classes at home or on mobile devices, while at their children’s sporting events. • All Tooling U classes were purchased for each employee. With our focus on Production, Planning, Contract Review, Inspection, and Maintenance. This is a positive benefit with our hiring candidates when they ask about our training program.

14. Our talented employees have completed over 7,000 Tooling U classes. • We will continue to invest time and resources to train our employees.

15. .) New Hampshire Ball Bearings, Inc. Tooling U User Group Discussion Las Vegas September 12, 2011 toolingu.com

16. New HampshireBall Bearings, Inc. • Introduction Acknowledgement • Our names Donna Cadrette and Sheila O’Brien • Our role Divisional Trainers • Company overview New Hampshire Ball Bearings, Inc. (NHBB) NHBB is part of the Minebea Group family of companies headquartered in Tokyo, Japan The world’s largest producer of miniature ball bearings and a world class manufacturer of precision bearings and assemblies for the aerospace, defense, medical/dental, and high technology markets The Minebea Group comprises: 60 subsidiaries and affiliates in 17 countries employing approximately 40,000 people • Locations: Astro Division – Laconia, NH - Union Shop - Donna HiTech Division – Peterborough, NH - Sheila Precision Division – Chatsworth, CA NHBB operates three highly specialized precision manufacturing facilities in the United States • Astro and HiTech are within the top 10 largest employers in NH – over 1000 Employees

17. New HampshireBall Bearings, Inc. • Overview of need for training • Improved productivity, organizational growth, maintaining a competitive advantage Our workforce paradox--the need for skilled machinists and technically-competent production workers continues to dramatically increase while the prevalence of these desired skills among the workforce continues to rapidly decrease overall In response, we MUST accelerate our training and development programs • Key business objectives • Reduce scrap, increase productivity, improve on-time delivery to the customer through an empowered workforce dedicated to continuous improvement. • Key considerations for designing our training program • A formalized, consistent program to enhance current skills, production time and self-investment programs • Limited Trainer resources • Why we opted for Tooling U • Unique on-line MFG adult learning, self-paced Targeted to key business metrics • Variety of subjectsConvenient – accessible 24/7

18. New HampshireBall Bearings, Inc. • Overview of how we designed the Tooling U program ASTRO Division • In-House Program – Access to Computer Lab, 1:1 with Trainer, 2 hours during work week. • Volunteer Home Program – classes are completed outside of normal work hours. HITECH Division In-House Program – Access to Computer Lab, 3:1 with Trainer, 2 hours during work week. • Desired outcomes • Improve skills and competency • Improve cross training & job transferability • Improve employee moral and bolster promotable potential • Key training/learning objectives • Move beyond basic machine skills • Refine ‘shop skills” such as math, gaging, blueprint reading, etc. • Overview of how we implemented and rolled out to workforce • It took time to gain go-forward support for TU so our first year enrollment was essentially on an individual approval basis. Later, government grant funds became available which defrayed some cost so we transitioned to an open enrollment.

19. New HampshireBall Bearings, Inc. Continued overview of how we implemented and rolled out to workforce • Presentation and demo for supvs/mgrs • Trial accounts setup for supvs/mgrs to explore • Arrange for space and computers to conduct training • Solicit managers/supervisors as to who should participate • Administer pre-assessments and develop course curriculum relative to job function • Briefing session for students and supvs (show TU website & 8 min video) • Create a schedule for classes • Prepare instruction booklets and materials needed--headsets • On-going training provided from in-house Trainer • Celebrate success Key Tooling U pieces/functionality for supporting our objectives • Access 24/7 - Audio option • Pre & post assessments - Quizzes and labs • Administrative capability - Ability to set our own requirements • Reporting system - TU service support • Transcripts shows only highest score (all about learning)

20. How long have you been live with Tooling U ASTRO – July, 2009 HITECH - July, 2010 Other critical pieces of program, i.e. shop floor, classroom, etc. Tutors, On-the-job training, Professional Development Planning, Computer classes For whom? Line Leaders, Supervisors, Machinists, Quality Inspectors, Technicians, Engineers, Sales, Administrators, Maintenance How many? 15-20 students per 3-month session Summary of outcomes and results ASTRO 124 employees - 3,912 hours – 4,763 classes HITECH 45 employees – 705 hours – 1,237 classes In partnership with other various aspects, we reduced scrap, increased productivity and increased on-time deliveries at both divisions New HampshireBall Bearings, Inc.

21. New HampshireBall Bearings, Inc. • Summary of ongoing progress • New Terms start October, 2011 • ASTRO 11 students, HITECH 18 students • Continuous Improvement culture • “Learning Organization” - NHBB company value • Implement new TU features • Ongoing challenges • Training funds in a business environment are always being scrutinized for the value added so matching grants make it a certainty. • Both Divisions will apply for a Government Grant as they become available • A settled and quiet location for on-line training (HITECH moved 3 times) • Pulling production workers off the mfg floor for 2-hr training • Helping students who are inexperienced with computer technology overcome fear and anxiety

22. New HampshireBall Bearings, Inc. • Key lessons learned • Need quiet space • Set a fixed schedule for training (allow flexibility to re-schedule time) • In-House Trainer guidance at least during the first 4-5 weeks of training • Good study skills will help students progress further • Be prepared to support students with generational differences The company investment is valued and appreciated by employees and in turn the Company has realized productivity gains - Win/Win

23. .) toolingu.com