Maintaining a Passion for Continuous Improvement

LORD CORPORATION

WILL HINKSTON

• Founded in 1924

• Privately-held company with sales approaching $1 Billion

• World Headquarters in Cary, NC; Regional Headquarters: Geneva, Hong

Kong

• 3,000 employees, 16 manufacturing facilities (8 countries) and 8 R&D centers

worldwide

• 9% of revenue is spent on technology, resulting in 1 new product per week

• Exports are 4x more than imports

• Equal distribution of process and discreet manufacturing comprised of 10,000

different products

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Introduction to LORD Corporation

Oil & Gas

and Industrial

Equipment

Automotive,

Industrial and

Electronic

Assembly

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Unique Offerings Across Diverse Industries

Aerospace

& Defense

1. Metrics

2. Incentives

3. Collaboration &

Innovation

4. Leadership

Essentials for Sustained Continuous

Improvement

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A TRUE STORY ABOUT DELIVERY PERFORMANCE

• 97% - Current Promise Date

• 85% - Original Promise Date

• 70% - Customer Request Date ($)

• 60% - Customer Request Date (quantity)

• 50% - Customer Request Date (line item)

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Metrics

• Utilize measures that

incentivize the desired

behavior

• Must be easily understood

by all and have ability to

impact results

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Metrics

• Emphasize broad, cross-functional measures to foster teamwork

and broaden perspectives (i.e. value add ratios)

• Target year over year improvements / Avoid competition between

plants

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Essentials for Sustained Continuous

Improvement

1. Metrics

2. Incentives

3. Collaboration &

Innovation

4. Leadership

• Achievement of total corporate results

• 50% is net income

• 30% is operating cash flow

• 20% is sales growth

• “Spot” awards are available

• Production employees earn 5.5% of W-2 earnings if enterprise

goals are achieved

• Education and training strongly encouraged

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Incentives

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Essentials for Sustained Continuous

Improvement

1. Metrics

2. Incentives

3. Collaboration &

Innovation

4. Leadership

• Establish processes for sharing best

practices

• Set stretch goals that require new

approaches

• Engage the technical organization

• Provide capital/process funding to

improvement teams

• Learn from mistakes/celebrate

successes

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Collaboration & Innovation

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Essentials for Sustained Continuous

Improvement

1. Metrics

2. Incentives

3. Collaboration &

Innovation

4. Leadership

• Employee Engagement

• Establish Need for Change

• Be Ambitious for the Company

• Accessible – keep the personal ego in check

• Exude Enthusiasm and Resilience

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Leadership

It’s a race without a finish line…

13 | © 2014 LORD Corporation