Separable Assembly Flow Line

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Dresser-Rand Confidential - Not for Redistribution.

Separable Assembly Flow Line

December 7, 2012

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Dresser-Rand Confidential - Not for Redistribution.2

Safe Harbor Disclosure

Some of the information contained in this document contains "forward-looking statements". In many cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. These forward-looking statements are only predictions and as such inherently included risks and uncertainties. Actual events or results may differ materially as a result of risks facing Dresser-Rand Company (D-R) or actual results differing from the assumptions underlying such statements. These forward-looking statements are made only as of the date of this presentation, and D-R undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in D-R's annual, quarterly and special reports, proxy statements and other public filings with the Securities and Exchange Commission and other factors not known to D-R. Your decision to remain and receive the information about to be presented to you shall constitute your unconditional acceptance to the foregoing.

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Confidential & Proprietary

Any person allowing themselves to directly or indirectly receive the information contained in this presentation (the "Receiver") agrees that this presentation and all information contained herein and/or in any way distributed to the Receiver with respect to the same (verbal or otherwise) is the confidential and proprietary property of Dresser-Rand Company and is being provided to and received by the Receiver in confidence. Receiver agrees not to divulge the contents hereof to any third party without the prior written approval of Dresser-Rand’s duly authorized representative. Receiver shall advise any permitted recipient of the confidential information of the nature of the same and obtain their agreement to be bound to these terms before such confidential information is disclosed to them. Receiver on behalf of its principal, representatives, employees and themselves individually to hereby unconditionally agree to the terms hereof and agree to defend, indemnify, and hold Dresser-Rand harmless from and against any and all damages that result from Receiver’s failure to strictly comply with these terms. Receiver further agrees that failure to comply with these terms will cause Dresser-Rand to suffer irreparable harm. Your decision to remain and receive the information about to be presented to you shall constitute your unconditional acceptance to the foregoing.

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Objective

To develop an assembly process design that

achieves at least 95% OTD and 200 units per year. Design must be:

Safe and ergonomic Effective and efficient ( meeting SQCDP targets) Flexible (no monuments created) Continuously Improving Cost effective

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Planned Process Improvements

Parameter Current Target Proposed Countermeasures

Volume 80 Units 200 Units Shop 6 Flow Line

OTD 35% >95% Dedicated teamLimited product options (stocking)FIFO ScheduleSimple, visual planning

Margin 0 – 35% 26% • Process Stability (No go until all material on hand)

• POU Material, POU Tooling• Dedicated assembly stations • Limited product options

Problems Hidden Visible • POU Material• Dedicated Inventory

Locations

Problem Solving

“fire fighting” (point solutions)

Process stability via relentless root cause analysis

STAR boards, waste tracking pareto, A3 Problem Solving

Process Stability

Chaos: “Heroes”, “chasing” parts, expediting, e-mail, frustration.

Results through exceptional Process performance

Simple, visual processes with standard work

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DR Separable Market Share

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Separable Product Families VIP – sell less than 5 per year. Has a unique frame and cylinders. 2 years

ago we were obsoleting this line-up. AVIP – new market opportunity, not sure if its in our scope?? BVIP – not in scope of project CVIP – new market opportunity, in the scope of this project DVIP – not in scope of project

MOS – New compressor, has some features similar to HOS, some similar to VIP. The new flow line will initially focus on this product family, more of a “standard” product in the market.

HOS – sell 50-60 per year, product is 20 years old HOSS – sell 20 units per year, product is 4 years old BOS –only sold 5 ever, not in scope of assignment

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New MOS Compressor

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Current Separable Footprint

9

Build

Future Flow Line

The

Mov

e

TestPaint

Wash

Inventory

Inventory

Ship

Sub-Assy

Inventory

Inventory

Inventory

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Flow Line Layout - Concept

10

Test

Crankshaft Conn Rod

Hang Rods

Frame

Crossheads CylindersOil Pump

He = 7.00

∑ Dc = 0.82

S = 1.00

Takt = 8.54

ATw = 5.99

Resources (L) = 0.70

Resources (M) = -

ShipAssembly

He = 7.00

∑ Dc = 0.82

S = 1.00

Takt = 8.54

ATw = 2.18


Resources (M) = -

He = 7.00

∑ Dc = 3.14

S = 1.00

Takt = 2.23

ATw = 0.25


Resources (M) = -

He = 7.00

∑ Dc = 3.14

S = 1.00

Takt = 2.23

ATw = 1.00


Resources (M) = -

He = 7.00

∑ Dc = 0.82

S = 1.00

Takt = 8.54

ATw = 1.45


Resources (M) = -

He = 7.00

∑ Dc = 3.14

S = 1.00

Takt = 2.23

ATw = 0.66


Resources (M) = -

He = 7.00

∑ Dc = 3.14

S = 1.00

Takt = 2.23

ATw = 11.85


Resources (M) = -

He = 7.00

∑ Dc = 0.82

S = 1.00

Takt = 8.54

ATw = -


Resources (M) = 1.35

He = 7.00

∑ Dc = 0.82

S = 1.00

Takt = 8.54

ATw = -


Resources (M) = -

He = 7.00

∑ Dc = 0.82

S = 1.00

Takt = 8.54

ATw = -


Resources (M) = -

Mixed-Model Product Sync

Export Box

He = 7.00

∑ Dc =

S = 1.00

Takt =

ATw =

Resources (L) =

Resources (M) = -

He = 7.00

∑ Dc = 3.14

S = 1.00

Takt = 2.23

ATw = 2.23


Resources (M) = 0.50

Piston & Rod

He = 7.00

∑ Dc = 3.14

S = 1.00

Takt = 8.54

ATw = 0.96


Resources (M) = -

Nameplates

Frame Asm Bed Crank

Cross Head Inst.

Pump &

DriveTubing Hang

Cyls

Test 2

Test 1

Paint Ship

Export box

Cyl 1

Cyl 2

Cyl 3

Cyl 4

Cyl 5

Nameplate Hang Rods

Con RodsCrank

Piston & Rod

Cross Heads Oil Pump

XX X X

X X

X

X

X

X

X

Cyl 6

XX X

Assembly

S

S

S

S

Conceptual Kanban Design (Micro)

= Material Sequencing Point= Material Kanbans

S

Audit & Close 1

Audit & Close 2

X = In-Process Kanban (IPK)

XX

X X

X

X

X

= Service KanbanX

Conceptual Kanban Design (Macro)

18 Stockroom VMI 21 SEP

Supplier

In-House Machining K

K

K

K

K KK

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Flow Line Video

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Separable Assembly Flow Line