Delta Industries…

1. Delta Industries… AS9103 Implementation & Benefits Presentation for I.A.Q.G. October 7, 2005 Dave Wentworth - C.I. manager

2. Facilities • 75,000 Square Foot Climate Controlled • Current census 110 employees • ISO 9001:2000 Registered / AS 9100 Rev A Compliant • NADCAP Accredited (Welding, Brazing, NDT) • FAA Repair Station # NA1R341K • Network of 125 Sub-tiers

3. Product Sample Installation of Vane Assembly Fabricated Band Resistance Welded to case Cast Vanes Welded into Assembly Fabricated Ring Manifold Welded to Casting Sheet Metal Fabrication Cast Bosses Welded to Ring Forged and Machined Ring

4. Delta’s Continuous Improvement Journey • 2004 • 4th Large Machining & Turn Cells • Process Certification • UTC Value Stream Mapping • Achieve P&W Gold Supplier World Class C.I. Culture • 2002 • T.P.M. • Cutter Grind • Develop Root Cause database • 2003 • Implement team processing & reprocessing approach • 2000 • Initial Large Machining & Fabrication cells • Fabrication cell • Reprocessing for flow in cells • P&W A.C.E. • 2001 • 3rd Large Machining cell • Only Product specific cell • 1999 • Co-founded A.C.M, Aggressive Benchmarking • All Employees Trained in lean concepts • First Pull System, extraordinary success with Kanban • Pilot cell, Design & build for small processes • 1998 • Establish CI Dept. • Six Sigma training • Various CI Projects • 1997 • Top Level Commitment • Strategic Planning of Culture Change Origin of C.I. Culture Delta Industries Proprietary

6. Prior Culture Delta 1990’s

7. 1998 Pre-Cell TURN DEPT MILL DEPT Delta Industries Proprietary

8. Machine Foundations Removing Walls

9. Work in process

10. 5 Year Transformation to Present 2001 2000 2004 1999 2001 2000 Delta Industries Proprietary

11. Present Culture

12. Why 9103 Now? Customer Driven – Clear objectives & milestones (Total Involvement) Timing – Fit into our culture of continuous improvement (We were ready)

13. Key Implementation Steps • Data Collection • (Establish method and location) • Measurement System Analysis • (Create / Achieve / React)

14. Example

15. Key Implementation Steps • Key Process Inputs • (Select & determine control method) • Control Plan • (Development / Implement / Refine)

16. Some Benefits From 9103 • Addressing of irritating issues • Remove the “it’s good enough attitude” • Focus on upstream processes • (Plan for success) • Documentation of expert knowledge • (Best Practices)

17. Machining Example Issue - In order to produce a blueprint part a smaller size must be targeted and at times operator would have to creep up to the finish cut

18. Machining Example Performance - Maximum CPK obtained = .9

19. Machining Example Before After Groove cut after top dia. Groove cut before top dia. Root Cause = Sequence of turning Corrective Action = Turn groove first Result = Sustainable CPK of 2 +

20. What’s The Real Benefit? Time – Eliminate “creeping up on” re-cuts (Rework / Yield) Flexibility – Operator experience a non-factor (Better operator utilization) Standardization – Lessons learned (Implement standard changes to all programs)

21. Welding Example Before process control – Upstream processes were manufactured to blueprint requirements After process control – Upstream processes controlled to enhance the welding processes Detailed mapping of process is critical to visually understand key inputs

22. Plan for Success Issue - At contract award notified that manual weld process had high M.R.B. activity related to material thinning (KPC) Preemptive Root Cause - Grain structure variation of details being welded Corrective Action - Upstream process controlled (Material thickness tolerance tightened to high side) Result – Sustainable C.P.K. of 1.5

23. Best Practices Learned Before 9103 – Replacing tungsten in torch was based on operator experience • After 9103 – Control plan states • Replace tungsten immediately if: • Oxidation occurs • Wire contacts tungsten • Or any other sign of contamination

24. Best Practices Learned Before 9103 – Changing inserts was based primarily on operator interpretation of need CNC programs had “check insert” points After 9103 – Control plan dictates tool change points in CNC program During debugging & approval process of programs experienced operators determine tool change points

25. Summary • Process control perceived as labor intensive • (A large company initiative) • A balanced diet of customer interaction & flexibility • (Appropriate characteristic selection) • Suppliers need to discover the benefits • (Positive payback)