Leadership and CultureSEA Managed Process 1.1.4

Continuous Improvement Process Presented May 24, 2010

www.garkenyon.comPhone: 1(203)729-4900

Email: sales@garkenyon.com

• Gar-Kenyon Technologies is a leader in the design and manufacture of hydraulic and pneumatic aerospace components..

• Gar-Kenyon has been designing and manufacturing Aerospace and Defense products for over 50 years.

• Gar-Kenyon’s origins trace back to 1950 when Kenyon Instrument merged with Gar Precision’s Valve Division.

• Military programs initially dominated Gar-Kenyon’s revenues, including the A-6, A-10, F-4, F-14, F-15, F-16, F-18, C-130, C-5 and P-3 aircraft.

• During the 1980’s Gar-Kenyon became more closely affiliated with General Aviation aircraft manufacturers.

• In the 1990’s Gar-Kenyon partnered in the development of components used in various Regional Jet aircraft.

• Gar-Kenyon’s products are designed to meet specific customer requirements. We specialize in hydraulic, pneumatic and

mechanical devices. Including:• Bleed Valves

• Check Valves

• Flow Fuses

• Manifolds

• Master Brake Cylinders

• Parking & Emergency Brakes

• Relief Valves

• Restrictors

• Shimmy Dampers

• Shuttle Valves

• Toe Brakes

• Water Fill Valves

• Flow Gauges

Well Known in Aerospace Industry• Gar-Kenyon has produced products for over

100 different aircraft.• We supply products to many of the major

aircraft and aircraft systems manufacturers.

SEA-LES PRO CESS GRO UPS Process G roups

Champions

A ll n a m e d in SPW -I W o rksh o p

Processes Ow ners (may be same person as Champion)

L e a d e rsh ip & C u ltu re Ow n e rs n a m e d SPW-I w o rksh o p .

1.1 Strategic Planning Peter

1.2 Leadership Communication Jon

1.3 O rganizational Performance Review Jane

1.4 Continuous Improvement Management (usually same as O perational Excellence Champion)

Ken

1. Leadership & Culture

Steve

1.5 Workforce Development Integration (usually same as Workforce Development Champion)

Tom

2. Work-force Development

Tom 1 .1 Job Sk ills & Cross Training Certification G race

1 .1 Kaizen Process Pete

1 .2 6S Visual Workplace Process Ken

1 .3 Q uick changeover/SMED Process Jon

1 .4 Material Management Process Jon

1 .5 Production Planning Process Jon

3. O perational Excellence

Ken

O ptional: Net -Inspect Process n/a

Continuous Improvement Process Description

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? What criteria are used to select priorities for improvement? 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 mistakes and successes accomplished?

Preparation

Confirm Continuous Improvement team members.Obtain:• Strategic plan with goals and targets,• Sea Quarterly Report Improvement Plan. Management Quarterly Report.• Process Maturity Listing.• Process Owner Reports from Monthly Managers Meeting.• AS9100 Quality Manual and procedures.

Set Continuous Improvement Meeting Agenda

Collect Data

Collect:

Balanced Scorecard. Sea Quarterly Report feedback. Process Owner Reports. 6S and Kaizen project reports. Actions from previous Continuous Improvement Meeting.

Reviews

• Conduct Reviews.• Prioritize areas of need.• Determine strategies for improvement (6S, Kaizen, Value Stream Mapping).• Develop action plans and target dates.• Develop goals and measures.

Feedback

• Monitor Progress• Collect Feedback.•Improve Process.

Monthly Review Meeting of Goals, Targets, Action Plans, Champion Reports.

Quarterly Employee Meetingsto review company performance,goal status, and obtain employeefeedback.

1.1.4 Continuous Improvement Process Flow

S trategic P lanning P roc es s S tategic P lan with goals and targets

S E A Quarterly R eportS E A Quarterly R eport Im prov em ent P lan

C ontinuous Im prov em ent M eeting A genda

C ontinuous Im prov em ent Team

M anagem ent Quarterly R eport P roc es s m aturity Lis ting

M anagers M onthly M eeting R eport

P roc es s Owner R eports

A S 9100 Quality m anual and P roc edures

B alanc ed S c orec ard

S trategic P lanning P roc es sS E A Quarterly R eport Feedbac k .P roc es s Owner R eports .

P roc es s Owners 6S and K aizen P rojec t R eports

C ontinouos Im prov em ent Team

A c tions from prev ious C ontinuous Im prov em ent M eetings .

C onduc t R ev iewsP riorit ize areas of needD eterm ine s trategies for im prov em ent

P roc es s Owners

D ev elop ac tion plans and target dates

K aizen Leaders

D ev elop goals and m eas ures

C ontinuous Im prov em ent Team

M onitor proc es s C ollec t Feedbac k

Im prov e P roc es s C us tom ers

E m ployees

G ar-K enyon Technologies S IPO C Process W orksheet

► ►

M anaged Process 1.1.4 C ontinuous Im provem ent

► ►Supplier Input Process

Preparation

Data Collection

Review

Feedback

Output Customer

Agenda for Continuous Improvement Meeting

Objectives of Meeting

Review progress on continuous improvement projects and process maturity efforts.

Participants: Continuous Improvement Team and Process Champions.

Preparation: Meeting Owner to send out agenda to participants 5 days prior to meeting. Request Process Owners and CI Team have current progress updates on actions. Obtain Strategic Plan, SEA Quarterly Report Improvement Plan, Management Quarterly, Process Maturity Listing, Process Owners Reports from Monthly Meetings.

(continued)

Agenda Continued1. Review of prior meeting action items

2. Review progress roadmap and managed processes.• Review current process maturity levels.• Review results from recent process improvement projects.• Identify and prioritize new process improvement projects.• Set new process maturity goals for roadmap and managed processes.

3. Leadership Recognition and Communication• Identify employees and teams that should be recognized for successes, and plan recognition.•Identify communication needs and update communication plan.

4. Summarize and evaluate actions from the meeting• Ensure one owner per item with clear measures and deadlines.

GAR-KENYON STRATEGIC PLAN FY2010

Vision StatementWe will increase revenue 50% by 2012 using lean processes company wide to become the preferred source

for custom engineered fluid power aerospace components

On Time DeliveryChampion: Metrics: Cust. OTD Chart

Actions1. Establish Metric Methodology 2. Implement Reporting 3. Analyze 10 latest each month using Root Cause Analysis, Trends, Actions4. Level Load Assy & Test Kaizen 5. Overhaul & Repair Kaizen 6. Develop labor reporting plan

Eliminate EscapesChampion: Metrics: Escapes, DPMO

Actions

1. Establish Metric Definitions & Methodology

2. Implement reporting

3. Analyze root cause and corrective actions for 3Q & 4Q escapes

4. Plan for Standard Work and Training

New Business Development

Champion: Metrics: RFQ's / Proposals

Actions

1. Establish Metric Methodology

2. Implement Metric Reporting

3. Develop Strategic Marketing Plan

4. Kaizen PMA Process

S.E.A .Stage 1 Certification

Champion: Metrics: S.E.A Metrics

Actions

1. Self Assessment (Current State)

2. Establish Action Plans

3. Employee Site Visits

4. Submit New Change Management Plan to S.E.A. For Comment

Monthly Management Review on 2nd Monday of Each MonthAgenda 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. Kaizen reports and newspapers as required.

STRATEGIC GOALS

CO N TINUOUS IMPRO VEMENT

(Contact MR) CI Project Number:

O riginator: Date: / /

Department O riginator Signature

T h is f o rm is t o b e f ille d u p b y t h e o r ig in a t o r w h o w ill c o-o rd in a t e a ll t h e a c t iv it ie s t o c o m p le t e t h is p ro je c t . If in s u f f ic ie n t s p a c e u s e o t h e r s id e .

Describe the issue or Area for Improvement: ( Id e n t if y w h a t t h e p ro b le m is , w h a t h a s g o n e w ro n g o r w h a t m a y g o w ro n g)

T he Im provem ent re la tes to one or m ore of the fo llow ing: Qu a lity S a fe ty E n viro n m e n t

In te rn a l Au d it C o m p la in t P ro ce ss P ro b le m Su p p lie r P ro b le m C o n fid e n tia l

Reason for taking up this improvement project: ( In d ic a t e t h e re a s o n t o c a rry o u t t h e im p ro v e m e n t )

Project Start Date: / / Project Completion Date: / /

Documents Affected: ( In d ic a t e a n d d e t a il d o c u m e n t a t io n )

Procedure :

Work Instruction:

Form or Other:

Action Plan : (P re p a re t h e a c t io n p la n f o r c o m p le t in g t h e p ro je c t )

Description of Action to be taken Responsibility Target Date

/ /

/ /

/ /

/ /

/ /

Approval by Concerned Head: (P le a s e co m m e n t o n t h e S u g g e s t io n o r Im p ro v e m e n t ) Agree D isagree

Na m e S ig n D ate / / .

Evaluation: (D id t h e a c t io n re s o lv e t h e is su e o r le a d t o im p ro v e m e n t s ? if n o , w h a t is yo u r p ro p o s e d f u rt h e r a c t io n p la n ? )

Na m e S ig n D ate / / .

Forward to Management Representative

Status: C los e out / H o ld

Na m e S ig n D ate / / .

Management Acknow ledgement and Sign -off:

Co m m e n ts

Na m e S ig n D ate / / . C opy to Or ig inator

Employee Review Agenda

Strategic ObjectivesPerformance ScorecardSEA ActivityContinuous Improvement

Activity QualityEmployee FeedbackClosing Comments

THE END