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SEA Process Owners Forum1.1.4 CI Management

September 13, 2011

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AGENDA1.1.4 CI Mgmt. Process Map

RTC CI Priorities 2011

CI Resources and Tracking

CI Example: Engineering Process Flow

Summary: Review of 1.1.4 CI Mgmt. Process Map

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1.1.4 Continuous Improvement Management

SEA 2011 All Rights Reserved

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1.1.4 Continuous Improvement Management Process – How does your organization select improvement priorities and review progress on improvement initiatives? How are process owners, master trainers, and strategic champions included in this process? How are improvement projects and teams selected and given direction? How is a standard problem-solving model deployed throughout the organization? How are recognition and sharing of key learning accomplished? How are process improvement ideas solicited, reviewed, approved, and implemented? How is a high level of workforce participation ensured? How are improvement suggestions recognized? How are suggestions made visible in work areas?

Preparation Collect Data Reviews Feedback

CONTINUOUS IMPROVEMENT MANAGEMENT

Compile data for each review – secure SEA Quarterly Reporting process feedback

Compile process owners and master trainer reports

Compile Kaizen and project report outs

Prepare the Annual Improvement Plan in 1.1.1

Prepare the Quarterly Report Feedback

Kaizen scheduleProcess maturity listingProcess Owner reportsMaster trainers reportsSEA Examiner Feedback

Conduct reviews and develop action plans

Champion reportsProcess Owner reportsMaster Trainer reports

Collect feedback and improve process

1.1.5Quarter ReportAction Plans

Prioritized Kaizen ScheduleUpdated Process Owner Listing

Purpose: to prioritize and drive improvement efforts, as well as allocate necessary resources.

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Continuous Improvement Priorities 2011Continuous Improvement Priorities 2011

• Engineering Specialization / Process FlowDedicated Prototyping / New Parts Resources

• Integration of new acquisition’s mfg planning system •NDT Failures (Castings & Forgings)

Customer support to improve casting/forging house performanceReceiving Inspection / Rejection by lotAggressive CAR process with casting/forging housesOn-site visits

• General Mill and LatheCell-like disciplines:

SU – Run – Tear-Down Single piece flow without interruption

• On-time Delivery of Materials to Cells• Shop Floor: Improved real-time communication system for team leads and support staff • Paperless Processes

Manufacturing OrdersFinancialsAccounts Receivable: Invoicing/Payment and CollectionQA Files (Job File)Production Sheets

• Overtime Accountability

We develop,

communicate

and publish

our annual

targets.

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Continuous Improvement Opportunities 2011Continuous Improvement Opportunities 2011

Team Leader accountability for production v. standardProcess for closing mfg ordersImprove Wash AreaOperations buy-in/coordination for delivery date changesPRB parts flow: quick turnaround on MRR dispositionsInspection turnaround times for “courtesy checks”Mfg Order package readiness: tool lists, inspection sheets, inspection tools HRIS – select software packageMachine Maintenance visibility / improved unplanned downtime measurementDeburring capability in lathe areaReceipt to ISSUE cycle time monitoringImprove parts handling between buildingsCycle Counting – optimize processReduce shop floor “escapes” to InspectionHigh Speed Machining – investigate new technologiesPrinter in Shop (v. QC)Copy machine for QAOptimize shop floor inspection sampling plansReview QA/Engineering buy-offs at MO printSuggestion Box ProgramStaff Meeting – More Discussion

. . . and

pursue

additional

opportunities.

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Aaron Livera Set-up / Operator 3Aaron Malchose Team Leader 4 2 2 2Adan Perez Operator 2Agustin Lopez Deburrer 3Alejandra Armendariz Assembler

Alejandro Escalona Assembler 2Alejandro Montiel Night Shift Supervisor 3 2 2 2 2 2 2 2 2 2Alejandro Serrano Set-up / Operator 1 3 3 1 2 1 1Alfredo Diaz Set-up / Operator 2 2Angel Cordero Deburrer 1

1 Trainee: has basic knowledge and is training

2 Certified: employee is fully capable of performing job functions independently

3 Qualified: employee has advanced knowledge and performs job functions at a very high level

4 Master Trainer: employee has been certified and is qualified to train others

What human resources are available to support CI ?

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Who owns these processes and are the natural leaders for CI?

Process Type Managed Process Process Owner Champion Master Trainer SME'sProcess Maturity Count

Level 5: 0SEA 1.1.1 Strategic Planning BJ Brad BJ BJ 4SEA 1.1.2 Leadership Communication Alexis BJ Alexis Alexis 4SEA 1.1.3 Organizational Performance Review BJ Brad BJ BJ 4SEA 1.1.4 Continuous Improvement Management BJ Brad BJ BJ 4SEA 1.1.5 Workforce Development Integration Nancy BJ Alexis Alexis 4SEA 3.1.1 Kaizen Process Alexis BJ Eric Eric 4SEA 3.1.5 Production Planning Process S. Smuck B. Hart S. Smuck S. Smuck 4Company Accounts Payable Connie Elizabeth Elizabeth Elizabeth 4Company Accounts Receivable Rose Elizabeth Nancy Nancy 4 Level 4Company Certification Packages Jared Judd Mark Mark 4 26Company Material Testing Juan Judd Judd Judd 4 57%Company Planning S. Smuck B. Hart S. Smuck S. Smuck 4Company Purchasing - Outside Processing Juan Brad Alexis Juan 4Company Purchasing - Raw Material Ron Brad Alexis Ron 4Company Purchasing - Tooling Neal Bill Alexis Neal 4AS9100 QAP-001 Contract Review Alexis BJ Alexis Ron / Joe / Koger 4AS9100 QAP-003 Control of Documents Judd Judd Alexis Judd 4AS9100 QAP-004 Control of Records Judd Judd Alexis Judd 4AS9100 QAP-005 Receiving Juan BJ Alexis Juan 4AS9100 QAP-012 Corrective Action Judd Judd Judd Judd 4AS9100 QAP-014 Internal Quality Audits Alexis Elizabeth Alexis Alexis 4AS9100 QAP-015 Control of Monitoring and Measurement Devices Mark Judd Judd Judd 4AS9100 QAP-017 Human Resources Nancy BJ Nancy Nancy 4AS9100 QAP-018 Infastructure and Work Environment Bill Bill Bill Bill 4Company Shipping Juan BJ Alexis Juan 4Company Tool Ordering Processes Neal Bill Alexis Neal 4SEA 2.1.1 Job Skills & Cross Training Certification Nancy BJ Alexis Alexis 3 Level 3SEA 3.1.2 6s Pat BJ Pat Pat 3 14SEA 3.1.3 Quick Changeover / Setup Steven S. Smuck Steven Steven 3 30%SEA 3.1.4 Material Management Ron / Juan BJ Alexis Ron 3Company Customer Returned Goods Alexis Judd Alexis Alexis 3AS9100 QAP-002 Control of Stamps Mark Judd Judd Judd 3AS9100 QAP-006 Inspection Mark Judd Judd Judd / Mark 3AS9100 QAP-007 Supplier Selection Judd Judd Judd S. Smuck 3AS9100 QAP-008 Purchasing Ron BJ Alexis Ron 3AS9100 QAP-011 Control of Non Conforming Material Mark Judd Judd Judd / Pat 3AS9100 QAP-013 Preventive Action S. Smuck BJ Judd Judd 3AS9100 QAP-016 Handling, Packaging and Storage Juan BJ Juan Juan 3AS9100 QAP-019 Management Review Judd BJ Judd Judd 3AS9100 QAP-020 Computer Backup Todd Bill Bill Todd / Chris 3Company Employee Quality Orientation Nancy BJ Nancy Nancy 2 Level 2

AS9100 QAP-010 Configuration Management / Production Control S. Smuck B. Hart S. Smuck S. Smuck 2 3Company Import/Export Compliance (ITAR/EAR) Nancy BJ Alexis Kellie 2 7%Company Preventative Maintenance Frank Bill Frank Frank 1AS9100 QAP-009 Splits Jose Bill Alexis Juan / Jose 1 Level 1/0

Company Quoting BJ Brad BJJoe/Paul/Koger/ BJ/Ron/ Brad 1 3

7%Number of Processes: 46

Roberts Tool Company / Cliffdale Manufacturing

Process Matrix

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How do we make activities transparent and accessible to all?

Folders on “company”

Meeting Agendas

2011

CI

Engineering Process Flow-Team Charter - Reports- VSM - Metrics- Agendas / Actions

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Project Pending Planning Actions Improve CompleteEngineering SpecializationEngineering Process FlowClean-up LLC MO'sNDT FailuresGeneral Mill and LatheOTD of Material to CellsShop Floor Real-Time Parts StatusPaperless Processes MO's Financials Accounts Receivable QA Files Production SheetsOvertime Accountability

- - - -Cancelled - - - -

Roberts Tool / CliffdaleMajor CI Priorities: Status

August 2011

We track our progress . . .

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. . . and report the results.

SEA SUPPLIER QUARTERLY REPORT Supplier Name: Roberts Tool Company, Inc. Report Date: 08/03/2011 Contact Name: BJ Schramm Contact Phone Number: 818-407-0291 Email Address: bjschramm@robertstool.net DUNS Number: Reporting Period Q1 Q2 Q3 Q4 Fiscal Year Starting Month: SEA Certification Level Pre-Certification Stage1 Stage 2 Stage 3 Business Results Q1 Q2 Q3 Q4 On-time Delivery 95% 96%

Inventory Turns 10 10

Sales per Employee $58,200 $52,041

DPMO PPM 2,100 13,415

Processes at Level 3 or above 40 40

Annual Improvement Plan % Complete 75% 30%

Development Hours calculations on next page

Hours completed: 1772 Percent available hours: 3% Breakdown: L&C 806 WFD 339 OE 407 VS 220

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TEAM CHARTERThe Champion uses this form to charter improvement teams.

Process Name: Engineering ProcessCurrent Process Maturity Level (0 – 5) 0

Process Owner / Team Leader TBD

ChampionBJ

Facilitator / Consultant BJ

Team MembersS. Smuck, S. Nguyen, F. Reyes, J. Stump, D. Simpson

Problem Statement (as it is currently understood, in measurable, fact-based terms)Engineering capacity is one of, if not the, primary constraint to company growth.How can we change the process to reduce the total cycle time for new PN’s from Contract Review Approval through FAI acceptance?

Desired State (Measurable Results Desired from the Team’s Efforts)50% Reduction in Total Cycle Time

Start of the Process (what triggers the first step)Contract Review Approval

End of the Process (what signals the process is complete)FAI Acceptance (Internal)

Project ScopeIncludes: All PN’s which hit the Readiness ReportExcludes: Repeat PN’s which flow directly from Contract Review to MO Release.

Requested Improvement Completion DateTBD

How do we initiate a CI Project or Kaizen?

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ContractReview

Mfg Plan

Programming

Tooling

Control Plans

Release

1-5 Days

2-4 Weeks 8 hrs – 40 hrs

1-2 Weeks 8 hrs – 40 hrs [QC; Cutter / Fixture Design]

1-2 Weeks 8 hrs – 80 hrs [Fabrication] Sub-plates by hand; standardize? Special Tooling – long lead; ordered early? 2wks

1-2 WeeksLack of feedback to Engineering?Data analysis / ensure good partsMfg standards – feedback?

1 Day

Lead Time:5-10 Weeks

We develop a VSM for the process to be improved:

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ContractReview

Mfg Plan

Programming

Tooling

Control Plans

Release

1-5 Days

2-4 Weeks

1-2 Weeks

1-2 Weeks

1-2 Weeks

1 Day

Lead Time:5-10 Weeks

ContractReview

Mfg Plan Programming Tooling Procurement

Final Review& Release

Lead Time:3-5 Weeks

1-3 Days

Control Plans 2-3 Days

We envision the future state:

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We get into the details:

BRAINSTORMINGPARETO ANALYSIS

FISHBONE DIAGRAMS

AGENDAS – ACTION ITEMS –

PARKING LOT - FOLLOW-UP

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Key Parking Lot Issues (Out of Scope)

• QC Cycle time to process FAI• FAI process

– 1st time setup on floor– Debug programming– Refine tooling– Adjust operations– QC buy-off

• Contract Review – what does each reviewer look for?

• Gate managing funnel of priorities into Engineering – committee? Individual manager?

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Line # Type Part Number Housing Change to Rev. C Cutomer/ProgramQty. (first ship/total)

ORDER DATE ORDER #

PO Date / Del Date P.O. # Machining

Mfg. Plan-Due Date

1 NEW 27044 REV NC Parker HSD 14 5/5/2011 7816 8/25/11 N02768 Kitamura JS - Finished

2 NEW 27050 Rev NC Parker HSD 14 5/5/2011 7814 8/25/11 N02767 PCC2 JS - Finished

3 NEW 27046 Rev NC Parker HSD 14 5/5/2011 7815 8/25/11 N02769 Kitamura Steve Finished

LUCAN

4 NEW 5-86524 Collar Assy LSI 71 04/27/11 268 & 269 11/11/11 RTC Boyd

5 NEW MBEU 148694 REV C1 HOUSING TELEDYNE 67 5/11/2011 272 8/1/11 PMS4704-01 RTC Steve

SMUCK

6 NEW 229702 BODY ASSEMBLY MEGGIT 119 04/27/11 7801 11/22/11 146316OS RTC Steve

7 NEW 0711480-215 Housing Machined Arkwin 449 6/15/2011 7877 10/15/11 306552 PCC2 Steve

8 NEW 5060C156-1 GUIDE, WIRE Skurka 35 6/15/2011 7876 9/20/11 P111641 RTC Steve

9 NEW 5060C157-1 GUIDE, WIRE Skurka 35 6/15/2011 7876 9/20/11 P111641 RTC Steve

10 NEW 5060D115-3 IMPELLER, PUMP Skurka 38 6/21/2011 7880 9/9/11 P111776 ? Steve- complete

11 NEW 2813258-101 HOUSING PARKER A&F 14 6/22/2011 7885 10/15/11 M504271121 RTC Steve

12 NEW 350008 HOUSING ASSEMBLY, MACHINING MEGGIT 30 7/11/2011 7900 8/30/11 150342OS RTC Steve N.

13 REV 00-848653 yoke EATON 25 7/20/2011 7907 2/27/12 P401274 RTC Steve

14 REV 960035-1 LATCH CONAX 900 7/21/2011 7910 9/2/11 95300 lean solutions Steve

15 REV O855407 PORT -CAP PARKER HSD 11 7/22/2011 7914 12/15/11 L10869 OSV Steve

16 NEW 2813258-101 HOUSING PARKER AIR & FUEL 7 7/25/2011 7916 10/16/11 M504278731 RTC Steve

17 REV 3042100-7 - MANIFOLD PARKER HSD 25 8/5/2011 7936 11/23/11 L10870 RTC Steve

18 NEW R20298-2 - HOUSING Barry Controls 10 8/10/2011 7942 10/7/11 110973 RTC Steve

19 NEW 09-9527-01 - BRACKET Barry Controls 12 8/10/2011 7942 10/7/11 110973 Steve

20 NEW 18807-5 - DIAPHRAM SHOCK STRUT LSI 221 8/4/2011 280 1/13/12 Y85H-1HFE7-B099 OSV Boyd

21 NEW 09-9663-01 BRACKET,MTG (MACH) Barry Controls 100 8/10/2011 7942 10/3/11 110973 RTC Steve

22 NEW 70106-08100-046 UH60 damper assy AMCOM existing PO Boyd, JH

23 NEW 57908 PORT CAP PARKER HSD 5 8/24/2011 7966 1/11/12 L10871 Steve

NEW PART

24 NEW AS5179W02 NUT W & G 775 8/29/2011 282 8/19/11 0013001-00

25 NEW AS51990-106P RING, LOCK W & G 6200 8/29/2011 283 8/19/11 0013004-00

26 NEW AS51989-206-16 STUD W & G 6200 8/29/2011 284 12/9/11 0013002-00

27 REV 65106-11123-101 SPRING W & G 1550 8/29/2011 285 9/30/11 0013000-00

28 NEW 7-311511159Y3 DRIVE ARM W & G 500 8/29/2011 288 9/30/11 0013074-00

29 NEW 70106-08100Y046 DAMPER ASSY W & G 750 8/29/2011 289 8/17/11 0013079-00

30 NEW 70106-08001Y042 CYLINDER ASSY W & G 750 8/29/2011 290 10/14/11 0013080-00

31 NEW 70106-08003Y042 PISTON ASSY W & G 750 8/29/2011 291 10/14/11 0013082-00

32 REV 2711122-1 BODY PARKER HSD 40 8/29/2011 7548 4/19/12 SPD01646

33 REV 2002038-1 BAR, LOCKING CONAX 350 8/31/2011 7973 10/20/11 95658

34 REV 98174515-1 DRS 19 8/31/2011 11592 10/4/11 503486

35 REV 98174515-1 DRS 18 8/31/2011 11593 10/4/11 503485

36 REV 98174515-1 DRS 45 8/31/2011 11594 3/15/12 503562

37 NEW 622243-1 HIGH PRESSURE CYLINDER PARKER HSD 22 8/12/2011 7946 12/15/11 SPN02802 ?

38 NEW 622143-1 HIGH PRESSURE CYLINDER PARKER HSD 20 8/12/2011 7948 12/15/11 SPN02801 ?

NEW PN'sMilestones (Dates)

Fourth – we develop tracking and measurement tools

Fifth – we do it and make improvements

Sixth – we close out the project - Recognition - Close-out the Team Charter

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1.1.4 Continuous Improvement Management

SEA 2011 All Rights Reserved

17

1.1.4 Continuous Improvement Management Process – How does your organization select improvement priorities and review progress on improvement initiatives? How are process owners, master trainers, and strategic champions included in this process? How are improvement projects and teams selected and given direction? How is a standard problem-solving model deployed throughout the organization? How are recognition and sharing of key learning accomplished? How are process improvement ideas solicited, reviewed, approved, and implemented? How is a high level of workforce participation ensured? How are improvement suggestions recognized? How are suggestions made visible in work areas?

Preparation Collect Data Reviews Feedback

CONTINUOUS IMPROVEMENT MANAGEMENT

Compile data for each review – secure SEA Quarterly Reporting process feedback

Compile process owners and master trainer reports

Compile Kaizen and project report outs

Prepare the Annual Improvement Plan in 1.1.1

Prepare the Quarterly Report Feedback

Kaizen scheduleProcess maturity listingProcess Owner reportsMaster trainers reportsSEA Examiner Feedback

Conduct reviews and develop action plans

Champion reportsProcess Owner reportsMaster Trainer reports

Collect feedback and improve process

1.1.5Quarter ReportAction Plans

Prioritized Kaizen ScheduleUpdated Process Owner Listing

Purpose: to prioritize and drive improvement efforts, as well as allocate necessary resources.

Area

s Ad

dres

sed