Kaizen Report Out RTS - New Part Number Creation 2/23/16 – 2/25/16 –

New Part Number Creation (RTS) The Leadership team realized a lot of issues that inhibit flow of Customer orders. It was decided that the PO booking & RTS process was loaded with waste and non value added steps that caused delays and extra resources to book the Purchase Orders into the system and confirm to the customer. This Kaizen is focused on creating a new PO booking & RTS process that will get the Customer PO booked in 48 hours. Keys to the improvements; Create a “As Is” & “To Be” Process Map - streamlining the execution process - customer order to load into SAP ready for release to production. Defining roles and responsibilities – All that touch the process Create the deployment actions to transform to the To Be Process. Develop a PIM process which includes Leader Standard Work and improved visual management for key lead metrics. Establish an escalation process for lead metrics (early warning) that are not to target. (Regular Cadence)

Preparations 3 Benefits of Improving the Process: Reduce Lead time of the process to increase Customer Satisfaction and potentially market share PO acknowledgment to Customer in 48 hours Clarify roles and responsibilities Standardize the Process Customers of the Process: Final end Customer Customer Service Manufacturing Outputs: Part Number with Lead time Confirmed delivery date to Customer SAP Pricing / Cost BOM / Routing 3

Preparations 4 Clarify the Assumptions: Customer Pending PO or Customer order part setup Only part # release or reactivation process Global PE streamlining Part # creation may effect in future Establish Boundaries: Start : Receive Customer PPO End : Order booked & confirmed(step 1), RTS complete (step 2) Functional Areas: Customer Service Product Engineering Materials Master Team Mfg Engineering Customer Master Data Team Cost Accounting Purchasing Material Planning Customer Product Management Industrial Engineering Quality 4

“AS IS” PO booking & RTS Process 20 Kaizen Bursts – OpportunityFor Improvement Best Case Lead Time 6 days 4 hrs Average Lead Time 13 days 7 hrs Worse Case Lead Time 49 days 11 hrs

Opportunities Identified

“TO BE” PO booking & RTS Process RTS Post PO booking Process PO Booking Process PO Booking Process < 48 hours RTS Process (if needed) < 10 days Goal of “New Process” - 90% of orders book in less than 48 hours. Goal of “RTS new part creation is – 90% done in 10 days or less.

“TO BE” PO booking & RTS Process Best Case Lead Time – 4.5 days Worse Case Lead Time – 13 days Average Lead Time – 7 days 47% Reduction 74% Reduction