1 MPC Industries located in Irvine CA Established

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• MPC Industries, located in Irvine CA, • Established in 1952, MPC Industries is backed by over 50 years experience in polishing much of the world's finestquality sheet for the aerospace industry and precision grinding of alloys. • MPC's beginnings are rooted in the requirements of the aircraft industry. Our earliest work, involved preparation of skins for then-new generation aircraft. And, over the years, our precision grinding capability has expanded to where we now can grind any alloy to meet the requirements for any industry.

• Premier grinding and polishing company serving the international aerospace, medical and various other industries whose customers demand high precision, quality products. • ISO 9001: 2008 and AS 9100 Certified, We provide first quality flat sheet and plate precision grinding and flat sheet and formed parts polishing on time – every time.

3. 1. 2 6 S Visual Workplace Process The purpose of the 6 S visual workplace process is to place ongoing and continuous focus on workplace organization and effectiveness. 6 S VISUAL WORKPLACE PROCESS Areas Addressed Setup Develop Annual 6 S Implementation Plan and schedule Communicate 6 S plan PPT report Preparation Implement Audit Feedback Train all work areas in the 6 S process Work areas schedule and implement 6 S in a series of scheduled work events Monthly audit results go on the work area scorecard Collect feedback and improve process Provide coaching and assistance 6 S Audit results Establish 6 S scorecards in each work area Create incentive program Repeat regularly Repeat annually 3. 1. 2 6 S Visual Workplace Process – How does your organization ensure effective deployment of 6 S Visual Workplace strategies for workplace organization? How are the process flow, production status, employee training status and continuous improvement effort clearly displayed and visible in the office and factory floor? How does your organization ensure that work areas are kept consistently free of dirt and clutter? How are improvements reviewed and recognized? 4

3. 1. 2 Process Worksheet Suppliers Inputs Process Outputs Customers Senior Leadership Team Annual 6 S Implementation Plan and schedule Development of 6 s goals Setup Trained Staff and Employees Departmental and Plant targets. All Staff and Employees 3. 1. 2 Process Champion Training Material Training Events and Schedule Coaching and Assistance Preparation Process Owner Department SME’s Trained Employees Initial 6 s Implementation All Staff and Employees Process Champion Process Owner Sustainment Scorecard Sustainment Process Implement Audit schedule and process Process Owner and Leadership Team Process Owner Monthly Audits Audit Action Plans Leadership Team Employee Input of what's working and opportunities for improvement Feedback Improved Process Owner, Leadership Team 5

3. 1. 2 Work Instructions Inputs Process Instructions Outputs Customers Annual 6 S Implementation Plan and schedule Development of 6 s goals Setup A member of the executive staff will be assigned to assess the realistic value of the current goal and monthly audit schedule. This will be presented during the strategic deployment process. Next Year Goal and schedule All Staff and Employees Training Material Training Events and Schedule Coaching and Assistance Preparation As required the Process Owner will conduct 6 s training using the PPT presentation. And if the opportunity presents itself a an event will be scheduled. Trained Employees All Staff and Employees Sustainment Scorecard Sustainment Process Implement Follow the instructions on the sustainment scorecard. Perform Monthly audits and communicate results. Monthly Audits Process Owner and Leadership Team Monthly Audits Audit Schedule monthly audits with the participating departments. Report scores on departmental Business Plans and post results on communication boards. Completion, communication and accountability for 6 s scores. Report Outs at Monthly and Quarterly meetings. Leadership Team Input of what's working and opportunities for improvement Feedback Quarterly review the 6 s effectively. Using the PDCA process reinforce what is working and identify and implement opportunities for improvement. Improved 6 s Process Owner, Leadership Team 6

1. 1. 1 Training Record Process Participants Certified Trainer Training Date Certification Date Setup Ken Trevino Mario Robles 4/07/09 Preparation Leadership Team Ken Trevino 4/14/09 4/14/04 Training Roster 014 Implement Leadership Team Jorge Quiroz 9/16/2009 Audit Process Owner, and SME’s Ken Trevino 06/02/2010 Feedback Leadership Team Ken Trevino 9/15/2010 7

Q The 6 S’s Q Sort Q Set In Order Q Shine Q Standardize Q Sustain Q Safety 8

Q Sort: When in Doubt Get it Out! Q Set in Order: Place in the work area only materials and tools necessary to do the job. Q Shine: Clean, Paint, Make it look new! Q Standardize: A Place for everything and everything in it’s place. Make it obvious when something is not in it’s proper location. 9

Sustain Q In all my experience in this activity the sustain is above all the most difficult. Q Key Learnings: Q Managers can be measured but the operators must sustain their work area. Q Use a scorecard 10

Date: Auditor: Area Coordinator: 0 1 2 3 4 5 N/ A/C A /I Comments Intent/Scope of Category Sort / Select : clearly distinguish needed items from unneeded items and eliminate the latter. 1 Is everything in the area used on a daily/weekly basis (ask people in the area)? I/A 2 Are the walls and corners clear of leaning objects? I/A 3 Are shared common areas identified and organized? Is everything in the area used on a regular basis (ask people in the area)? I/C Is there excess/duplicate material, office supplies or tools in the area? (no personal tool boxes) Get rid of excess equipment so it can be used by others if they require it. Make sure that everything has a place and that the material is either back in its designated location or it is dispositioned, moved to an appropriate storage area or disposed of properly. Are the Common Area identified/owned and kept clean? The common areas may be identified on the area maps. Common areas are Mail Stops, Printers, Storage areas and DTF( Shop floor) Set in order : keep needed items in the correct place to allow for ease and immediate retrieval. 4 Are all required hand tools and equipment; - Labeled/Identified? (i. e. Owner /Station/ Area/ Location) - Is there a designated location (shadow boards/ labeled tool drawers) - Are hand tools in their designated location (unless being used)? A Are the tools & equipment identified to a location and stored in a dedicated location for easy retrieval? 11

16 Is ESD policy being followed? (Check for Posting ) - Look or ask if people are wearing ESD shoes or straps - There should be no food/ Styrofoam material in an ESD area - Randomly check to see that tables and carts are not past due for calibration. A 17 Did this audit area have a corrective action request from the previous month? 0 - If they had a corrective action request and haven't addressed the issue. A Has this area help another area improve on their 5 S score, or have they taken the initiative to clean-up an unassigned area. This category is Bo worth an additional 0. 20 if the area score is nu over 4. 50 s Does it look like people in the area are taking the ESD policy seriously and are they following it if it applies to the area? Make sure that all people have ESD protection on when in an ESD area. A 5 - If they didn't or if they did and have improved the score on that category. The area would need to participate in another areas major cleanup/organization effort directed at 5 S or focus on improving a low score that they received or take an unassigned area and clean it up. Proof needs to be evident that this occurred Column Totals Score Key 0 - No evidence found, Corrective action required 1 - Approx 1/5 th of the area is in compliance, Corrective action required 2 - Approx 2/5 th of the area is in compliance, Corrective action required 3 - Approx 3/5 th of the area is in compliance 4 - Approx 4/5 th of the area is in compliance 5 - Complete, (100%) no exceptions Total Area Points Total Points Final Area 5 S Score Number items audited 12

First Scorecard Q Q Q Subjective Unsustainable Confusing Knowledge Intensive Selective 13

So Lets Look At This Again. . 3. 1. 2 6 S Visual Workplace Process – How does your organization ensure effective deployment of 6 S Visual Workplace strategies for workplace organization? How are the process flow, production status, employee training status and continuous improvement effort clearly displayed and visible in the office and factory floor? How does your organization ensure that work areas are kept consistently free of dirt and clutter? How are improvements reviewed and recognized? 14 Hello!!! I think we need to get more VISUAL

Key Learnings Q Keep Q Improving Q Sustainability Q Simple 15

6 S+SAFETY "CHECKLIST" ZONE: Grinding SHIFT: 1 st OWNER: Rogelio Montoya # DATE: 12/11/2010 DESCRIPTION YES 1 Are the aisles free from clutter with racks, bins, etc. ? 2 Is the floor swept free of trash and debris? (Aisle ways and work areas) X X 3 Are workbenches, tables, equipment and racks free from trash or debris? X 4 Is the area dusted? (Lights, racks, tables and equipment, Walls) 5 All personal protection identified for storage as well as cleaning or disposal? (Gloves, arm guards, aprons, goggles, rags etc. 6 Are all tools, racks, tables, and equipment identified and 6 S controlled? (Labeled and stored) X 7 Are all hazardous materials properly identified? 8 Are all fire extinguishers and eye wash up to date and not discharged? 9 Is the 5 s floor tape in good condition? 10 Are all extra parts removed from the area and returned to appropriate areas? X X 11 Are all incomplete products identified and stored in a work in process holding area? X 12 There are NO existing safety hazards? (blocked fire extinguishers, razor blades lying around, worker not wearing all required safety gear) 13 Have all members of the department turned in an acceptable safety suggestion form to the Safety Suggestion Box? 14 Are all containers properly identified with labels, as well as directions on what to do in case of a spill or accident? Final Score: Walk the area and answer YES or NO to the questions above Take a picture of any non-conforming condition. Add the total number of YES's and fill in the FINAL SCORE box Write comments or suggestions to improve each of the NO answers Add comments and suggestion to the ACTION ITEM MATRIX NO X X X 11 EXCELLENT: 14 VERY GOOD: 9 -13 GOOD: 7 -8 AVERAGE: 5 -6 POOR: 0 -4 # 3 6 13 COMMENTS AND SUGGESTIONS Some racks have debris and other RATS on them. Numerous tools and equipment are not labeled and have no specifically designated area for storage. Not ALL members have turned in a Safety Suggestion. 16

Assigned To: Nonconformance # 1 Time Clock no longer being used. Recommend removing. START DATE: COMPLETION DATE:

Time clock was removed and area was given fresh paint as well as 6 S Board. Before After

Assigned To: Nonconformance # 2 ND IDENTIFY Need proper storage for broom. Metal needs to be identified or removed. Area needs taping. Rolls impede access to fire Extinguisher. START DATE: COMPLETION DATE:

Roll, broom and other materials have been removed. Before After

Nonconformance # 3 Assigned To: Area needs re-painting. Roll of paper should be stored properly. Items should be removed from a red -painted area. START DATE: COMPLETION DATE:

Items have been removed from red-painted area. Floor tape has been laid down to establish an area for rolls of paper. Before After

Communication Boards Information posted Include: • Work Hours • Quality Scores • Delivery Scores All Scorecards and Picture action plans are posted on Departmental Message Boards. 23

Sample Business Plan NOTES BUSINESS RESULTS Project Status Owner Priority /Goal Oct. Nov. Dec. Jan. Feb Mar Apr May Jun Jul Aug Sep 1 MAINTAIN 379 SQ/HR javier A XXX XXX 2 100 % DELIIVERY REDUCE THE CHANGE OVER 3 BY 50 % (SMED) javier A XXX XXX javier A 4 6 S Score Polishing javier A ON-GOING REPORTING DAILY 100 % DELIIVERY FOR OCT. , NOV. , DEC. XX 11 9 9 10 Not Started TREND IMPROVING 5 6 7 8 9 10 11 12 Monthly Scores are recorded on Manager’s Business Plan 24

6 s Score Polishing 6 S Goal Polishing 6 S 11 11 11 Sep Aug Jul Jun May As Scores are recorded the information is automatically Graphed in Preparation for Quarterly report 11 Apr Mar Feb Jan. Dec. Nov. Oct. 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 25

Safety Q Safety Team Organization: Q Safety Program Owner: Member of Staff Q Safety Team Leader: Production Supervisor Q Safety Team Members: Department Lead-persons or Volunteers. Q All Team Members have been cross-trained in 6 s Q A team member assists with every 6 s audit. Although they do not audit their own area. 26

Safety Communication Chain Q The Friday staff meetings at MPC are Topical: Q 1 st week: Quality System Review Q 2 nd week: Safety Steering Committee Q 3 rd week: Project Calendar Review Q 4 th week: Sales, Customers, Marketing Update Q 5 th week: Management Review 27

Safety Communication Chain Each Topic Has a Standardized Agenda, for Safety it is: Week 2, Safety Steering Committee, ( ) = SEA Criteria • Review Action Item List • Safety 1. Safety Team Report Luis a. General Report b. Safety Suggestion Report (Luis) c. Safety AIM (Maintenance Report) 2. Safety Topic of the Month • (3. 1. 2) 6 s visual workplace process • General Update • Review Scorecard Status by Department 1. Rewards and Recognition (Safety and 6 s) a. Business Plan a. Review “Safety” and “ 6 s” under “Quality, Delivery and Operational Excellence” section b. Review new action items 28

Safety Communication Chain Q The following week the Safety Team Meets. During this meeting a similar agenda is followed. Q The next day the Safety Team Members, at their Daily Start of Shift Meeting, communicate to their teams: Q General Update Q Scorecard Status Q Safety Topic of the Month, with handout. 29

Questions, Requests for Further Information or Copies of Templates, Contact: Cameron Tabbert, Continuous Improvement Coordinator Cameron@MPCIndustries. com Or, Ken Trevino, Dir. Tech. Services Ken@MPCIndustries. com 30