Presented by: Mike Khavar Manager, Quality & Continuous Improvements

1. Supplier Excellence Alliance (SEA)Process Owner Forum 2.1.1 Job Skills & Cross-Training Certification Process August 1, 2011 Presented by: Mike Khavar Manager, Quality & Continuous Improvements Certified Lean Expert & Master Black Belt mikek@warmelin.com

2. Warmelin Precision Products is committed to providing the highest value to our customers. This is achieved by proactively investing into: Continuous Improvement Efforts, Sharing of Cost Reductions, Implementation of Cellular Manufacturing Systems, and Total Quality Management Philosophies. Company Vision: • Privately held organization • Established 1968 • 90+ employees • Annual sales $12.5 M • AS9100B, ISO9001-2008 Certified • ITAR / DDTC Certified & Compliant • SEA performing company since 2009 ( @ Phase 3 )

3. Warmelin Precision Products • Total Manufacturing Area: 25,000 SF • In the process of adding an additional 10,000 SF • Present Manufacturing Capabilities • Precision Milling • Precision Turning • ID/OD Grinding • Mechanical Assembly – Clean Room

4. Our Simple Philosophy DELIVER QUALITY PRODUCTS ON TIME PROVIDE VALUE FOR THE CUSTOMER INFRASTRUCTURE CONTINUOUS IMPROVEMENT CELLULAR MFG RELATIONSHIPS INVEST IN THE FUTURE APPLY SIMPLE MODELS TO COMPLEX SITUATIONS

5. Our Commitment to Relationships • Business of Developing and Fostering Relationships • Customers • Suppliers • Employees • PROMOTES MUTUAL SUCCESS

6. Our Infrastructure SEEK & INVEST IN HIGHLY MOTIVATED PEOPLE AGGRESSIVE TRAINING PROGRAMS PROMOTING • COMMITMENT • ACCOUNTABILITY • QUALITY PROCESS DRIVEN ORGANIZATION UTILIZING CONTROL SYSTEMS FOCUS ON GOALS & RESULTS

7. SEA Roadmap 2011 Certification Level Bronze OTD 90-94.9%, PPM <15,000 Silver OTD 95-98.9%, PPM <10,000 Gold OTD 99-100%, PPM <2,500

8. 2.1.1 Job Skills & Cross Training Certification Process • How is job skills training and certification accomplished at WPP? • How does WPP ensure that processes selected are linked to key priorities for improvement? • How is cross-training accomplished at WPP? • How is the team of master trainers maintained and expanded at WPP? • How is the training and cross-training program reviewed at WPP?

9. WPP STRATEGIC PLAN FY2011 Vision Statement We will increase revenue 20% by 2012 using lean processes company wide to become the preferred source for Complex machined parts in the aerospace industry STRATEGIC GOALS On Time Delivery Champion: Dan Bohannon Metrics: Cust. OTD Chart Actions 1. Analyze 10 latest each month using Root Cause Analysis, Trends, Actions • Eliminate Escapes • Champion: Mike Khavar • Metrics: Escapes, PPM • Actions • Establish Metric Definitions & Methodology • Analyze root cause and corrective actions for each escapes • S.E.A Certification • Champion: Mike Khavar • Metrics: S.E.A Metrics • Actions • Establish Action Plans • Employee Site Visits • 3. Submit New Change to Management Plan to S.E.A. For Comment Monthly Management Review on 2nd Tuesday of Each Month Chair: Doug Horton & Ron Bohannon Attendee's: Mike Khavar, Dan Bohannon, Arturo Sanchez, Sherri Henkel, Nelia Avelino, Rue Segovia Agenda to be distributed 5 business days prior to meeting. Agenda to include: Goal Reports by each Goal Champion including metrics, analysis & root cause, status against action plans. Performance Improvement Plan review. Customer Scorecard review. Communications Plan and Training Plan. And other actions as required.

10. 2.1.1 Job Skills & Cross-Training Certification Process

12. 2.1.1 Job Skills & Cross - Training Certification Process • Reviews • Review training, cross-training, and certification progress and feedback. • Review Master Trainer status. • Compare training objectives to training activities. • Review course outlines • Review process metrics and process owner feedback. • Review Strategic Plan goals • Preparation • Obtain: • Annual Workforce Development Plan created in 1.1.5 • Job Skills Objectives (WI 7.7A) • Training Records • Monthly MRM • Process Maturity Listing. • Strategic Plan • Champions • Process Owners • Master Trainers • Collect Data • Compile data for review • Training Objectives • Process Analysis • Process Owner feedback • Feedback • Collect Feedback. • Improve Process. Training Plans Monthly All-Hands Employee Meetings to review company performance, goal status, training progress and obtain employee feedback. Monthly Management Review Meetings of Goals, Targets, Action Plans, Champion Reports and training updates.

13. All-Hands Employee Review Agenda • Strategic Objectives • Performance Scorecard • SEA Certification Progress • Continuous Improvement Activities (Kaizens, 6S) • Training Activities • Performance Incentive Plan (PIP) • Employee Suggestion Box • AS9100C conversion Progress • Employee of the Month Award • Open Q & A

14. Short & Long Term Goals Near-Term (12 mos.) • Achieve 94 OTD for all value streams • Reduce PPM on all value streams to < 3000 • Continue lean implementation - achieve inventory turns of 5.4 • Achieve a 20% growth • Achieve $220,000 Sales per employee • Achieve a quick ratio of 1.4 Medium-Term (12-24 mos.) • Achieve 95 OTD for all value streams • Reduce PPM on all value streams to < 2500 • Continue lean implementation - achieve inventory turns of 5.5 • Achieve a 20% growth • Achieve $223,000 Sales per employee • Achieve a quick ratio of 1.5 Long-Term (24+ mos.) • Achieve 96 OTD for all value streams • Reduce PPM on all value streams to < 2000 • Continue lean implementation - achieve inventory turns of 5.6 • Achieve a 20% growth • Achieve $225,000 Sales per employee • Achieve a quick ratio of 1.6

15. WPP Employee Training menu curriculum • MANUFACTURING SKILLS • Lathe CNC Machining operations skills • Mill CNC Machining operations skills • Grinding skills • Bench, Assembly & Deburr skills • M2M (Enterprise Resource Planning) system skills • Production Control planning skills • Shipping/Receiving operations skills • QA inspection/auditing skills • CMM programming skills • Safety related skills • General MFG practices skills

16. WPP Employee Training menu curriculum • CONTINUOUS IMPROVEMENTS • Production Operations/Workflow/Process Improvements • Quality Management Systems – AS9100 / ISO9001 • Certified Operator (CO) skills • Change Leadership skills • Six Sigma methodology skills • SPC Process Capability skills • Lean/Kaizen/6S’s skills • Certified Internal Auditor (CIA) skills • Total Productive Maintenance (TPM) skills • SMED/OEE skills • GD&T skills • APQP/PCPX/PPAP skills

17. WPP Employee Training menu curriculum • BUSINESS SKILLS • Project Management skills • Business Performance Skills (Accounting, Financial Controls, Inventory) • Material Management skills

21. Cross-Training Matrix

22. Training Room

23. M easure E verything T hat R esults Customer Centric I n C ustomer S atisfaction

24. Thank You THE END