December 2013

Operations / Engineering Presentation to Sales meeting

Sales Meeting ObjectivesCommunication Channels MTC

Organisational structure MTCSales & Operations PlanningInteraction between Sales & Engineering / Operations MTCEngineering / Operations Strategy SU / MTCProduct Rationalisation SU

Overview of Woking Presentation – Relative to Operations / Engineering

Request from Acteon, Level sales in 2014, Increase in EBITDA to 22%. Overheads tasking required.Pulse strategy:

Maintain Rental Delivery, Offer quick & guaranteed responseIncrease efficiencies / Drive Up MarginsContinuous review of Make / Buy in production & Engineering. Investigate further scope for OutsourcingRisk Assessments – Review & Re-categoriseUse JSA cards – OffshoreToolbox talks for all Operations

Sales meetingCommunication ChannelsOrganisational structureInteraction between Sales & Engineering / Operations

QHSE

Develop KPI’s that are aligned to Shareholder / Customer expectations covering:

QualityDeliveryFactory / Overhead Costs

Health & SafetyRecruit QHSE Manager (Action Complete)Review and update all Risk assessments, Train all staff on use and implicationsCreate HSE policy document defining responsibilitiesImplement JSA (Job Safety Analysis) form and train all staff on use (RK, Q4 13)

Field failuresCreate fast response team to perform route cause analysis on field failures, and respond efficiently to client

Project Management

Project Management to take full ownership of Quality, Delivery, Cost (MTC)

Develop hand over process between Sales & PM (MTC, Q1 14)

PM to consider acceptance of QDC at handoverConcerns / issues to be raised at earliest point

Training on project Cost Module (DK/BP, Q1 2014)

Prioritise QDC over “Hands On” (Project managers, Q1 2014)

Project Engineers transferred to Engineering to facilitate hands off PM (Action Complete)

Project Engineer training to improve support from Engineering (SU Q1, 2014)

Project Management

Sales & PM training on Contract Law (MTC, Q2 14)

Intent to avoid unnecessary risk with Customer Contracts

Project controls / gates (MTC, Q2 14)

Rules relating to Type / Qty of work with no contract / LOI

Financial targets (MTC, Q2 14)

Payment milestonesVariation Order opportunitiesKick back / Back to back terms on suppliersForecasted cost to complete for all projects every month

PM’s to be held accountable for contract financial performance

Project Management

Delivery performance / Workload (MTC, DK, BP, Q1 14)

Define roles / responsibilities and reporting structure of Program Manager and Technical Manager (Sharing of Project managers and Off Shore Support Team) Create Process for Program Management that considers capacity & capabilities of PM’s

Project Control (MTC Q3 2014)

Investigate opportunity to focus individual PM’s on market segmentsDevelop tools to assess PM ability to manage multiple projectsInvestigate opportunity to use “Top Solutions” as integrated PM tool

Supply Chain

Visit, assess and discuss partnership sourcing with Strategic Suppliers (MTC, EZ Q2 2014)

Draft and agree non-compete / non disclosure contract for suppliers and seek Acteon approvalUpdate Purchase T&C to consider extended payment terms, LD’s, etc (MTC, EZ Q4 2013)

Assess if existing supply base is able to support PSM growthIdentify new suppliers, develop strong partnerships aimed at improving working capital, total costs, ownership of Quality and sharing workload (design capabilities)Consider kanban supply tools for stock controlChallenge make / buy decisions on Design and Production (Ongoing)

Supply Chain

Fasteners / High Volume / Low Value productsEnter into agreement with suppliers for breadman (bin filling) system – Linked with rationalisation of fasteners – See engineering

Low labour Cost Countries (MTC, Low priority)

Explore opportunities and risks associated with LLCCConsider China / Mexico production to support Asia and North / South America growth, and reduce shipping costsPCB , Machining, Fabrication, Design Expertise to be considered

Production

Conduct Training on Lean Manufacturing (MTC, Q1 2014)

Conduct 5S exercise in Prod’n and FAT areas (MS, Q1.2014)

Shadow BoardsA place for everything, everything in its’ place

Stabilise Designs (SU / MTC, Ongoing through 2014)

Address quality issues in TIU, hardwired loggers, INTEGRIstick, Mk 2 Loggers (Cross Calibration) Create user friendly work instructions

Investigate / improve Goods In / Goods Out process

ProductionProductionProduction

Production

Lean manufacturing (SU / MTC, Through 2014)

Automate calibration / Documentation (Birth Certs) processStart Design for Manufacture / Calibration processConduct Lean / Quality Kaizen events including stakeholders ERP

Implement ERP system for Supply Chain and ProductionEstablish Part Number protocol for all partsUse MRPII for creation and management of Item Masters and BOM

ProductionProduction

Production

Dashboard (MS Q1 2014)

Create Dashboards in production showing KPI’s, workload and performance metrics

Investigate fit for purpose on production / calibration equipment.Toolbox Talks (MS, Ongoing)

Regular toolbox talks with all personnel, covering HSE, Customer satisfaction, workload, lean

R&D / Engineering

Design for ManufactureDevelop Modular concept on Mk3 Loggers to offer bespoke feel for minimal costs

Make / Buy design activities through Sub-Contract baseAre sub-contractors able to share design burden for minimal costs?Get PCB contractors to FAT & deliver 100% quality

Environmentally test all standard equipment for compliance with ISO13628 Subsea EquipmentProduct Rationalisation Plan

R&D / Engineering

Develop design protocol that uses agreed / reduced range of standard fasteners and productsInvestigate process for configuration and revision control (as built drawings, Solid Works revision control)CE approval / Other International specifications. Review of legal compliance and develop a plan to meet regulations?

Other

Move to new factoryConsider increased costs & Acteon requirement for 2014 BPConsider 5 Year growth planAre we able to short term sub-let?Consider quiet room / Do Not Disturb offices to allow personnel under pressure to concentrate

PersonnelInvestigate new contract terms with temporary contractor agencies – Tender to different agencies for competitive costs Request free transfer from temp to perm after set period Establish skills matrix and training plan to improve competency and interest within the teamSite survey training for offshore technicians

2014 business plan Assumptions

Drilling market (Predominantly rental) increase will utilise existing rental fleet so growth of 55% will not impact Production Capacity Production market reducing by 45%, will reduce Engineering and PM workload. Subsea Infrastructure

Thank Youwww.pulse-monitoring.com