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Data from (6) Month Review 1.1.1 Strategic Planning Purpose: to define and deploy the most important strategic priorities to drive performance improvement. STRATEGIC PLANNING Data from (6) Month Review Preparation SWOT Planning Session Deployment Meetings 1.1.2- Leadership Communication (Lisa) 1.1.3- Organization Performance (Chuck) 1.1.4- Continuous Improvement (Anthony) 1.1.5- Workforce Development (Kelly) PAC 13 assignments Financial Analysis Operations Analysis Technology Analysis Customer and Markets Analysis Competitive Analysis Standards – AS9100, NADCAP and SEA/LES SWOT Completion From- Customers, Suppliers, and Employee Skills Assessment Customer Interviews/Surveys Employee Interviews/Surveys Supplier Interviews/Surveys SWOT and Business Annual Report Vision Review Mission Review Targets & Objectives Value Stream Mapping (if needed) Review Champions Review Process Owners Review Process Maturity Employee Meetings (4) Supplier Meetings (if needed) Customer Meetings Department and Individual Goals (if needed) Action Plans Recognition Communication (6) Month Review of revised or new “Strategic Planning” Goals, Targets and Objectives. Please read and keep these questions in mind as you complete the attached SPW worksheets. 1.1.1 Strategic Planning Process – How does your organization accomplish its strategic planning? What are the key process steps and who are the participants? How do you ensure that the process addresses strengths, weaknesses, opportunities, and threats; major shifts in technology, markets, and competition? How are standards such as AS9100 integrated into the planning process? What are your key strategic goals and timetables? Page 3

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1.1.1 Strategic Planning- Preparation Preparation will encompass the following information gathering- Financial Analysis Report from the CFO Operations Analysis Report from the COO Technology Analysis Report from the General Manager (are we a “Front Runner”) Competitive Analysis Report (based on surveys below) Review of Standards (QAM)- AS9100 Rev. C NADCAP Specifications for Special Processes SEA/LES Surveys used for information gathering- Customer Interview/Survey (see page 6) This Survey should be sent to customers within the top 5% of the customer base and repeated among selected customers to develop better business trends. Supplier Interview/Survey (see page 7) This Survey should be sent to suppliers within the top 5% of the supplier base and repeated among selected suppliers to develop better business trends. Employee Feedback Forms (see page 8) This Survey should be taken from a random sample of 8 to 10 employees involved in the day to day operation of the company. Leadership Processes Self-Assessment Survey (see page 9) Self-Assessment Survey is to be completed by all members of the Lean Management Team and/or Process Owners. PAC 13 assignments Financial Analysis Operations Analysis Technology Analysis Customer and Markets Analysis Competitive Analysis Standards – AS9100, NADCAP and SEA/LES Page 5

Customer Interview/Survey Customer/Company Name: Date: Customer Contact:   Title: In our continuing efforts to improve our quality system, we would ask you to complete this Customer Survey Form and return it to us within one work week of receipt. Your input will assist us significantly in further improving our product quality and responsiveness to your requirements. PLEASE SELECT THE APPROPRIATE NUMBER, WITH "5" INDICATING "VERY PLEASED" AND "1" INDICATING "VERY DISPLEASED". 1 2 3 4 5 OVERALL QUALITY OF PRODUCT ORDERED OVERALL QUALITY OF PACKING, PACKAGING AND PRESERVATION ON-TIME DELIVERY DOCUMENTATION PROVIDED RESPONSIVENESS TO SHIPPING SCHEDULES AND CHANGES 6 PRICING 7 INVOICING 8 COURTESY OF OUR PERSONNEL 9 RESPONSIVENESS OF OUR REQUEST FOR QUOTES 10 RESPONSIVENESS OF OUR PERSONNEL TO COMPLAINTS WE WOULD WELCOME ANY COMMENTS/SUGGESTIONS OR IMPROVEMENTS YOU WOULD CARE TO MAKE ELABORATING ON ANY OF THE SURVEY ITEMS LISTED ABOVE OR ANY TOPIC YOU FEEL WE HAVE OMITTED. COMMENTS: NAME TITLE DATE THANK YOU IN ADVANCE FOR TAKING TIME TO COMPLETE THIS SURVEY. THIS WILL ASSIST C&H MACHINE IN THE CONTINUOUS IMPROVEMENTS EFFORTS. PLEASE SEND THIS SURVEY BACK TO THE ATTENTION OF C&H MACHINE'S QUALITY DEPARTMENT VIA FAX TO: 760-745-2511 Page 6

Supplier Interview/Survey   943 S. Andreasen Escondido, Ca. 92029 (760)746-6459 Fax(760)745-2511 Supplier Quality Survey Survey Conducted By Initial Survey False Yes False No Follow-up Survey Company Name: Supplier Address: Sub-contractor City: State: Zip: Phone: Fax: Web: State or City License # List products and services offered List number of employees Production Quality Total Management Name Title Do you have a documented Quality policy that defines objectives and commitment. Are you ISO 9000 and/or AS9100 approved? Yes No Certification Number If so you do not need to complete the questionnaire below. Please submit a copy of your Certification with this form. Other Certifications Does your company allow pre-arranged visits to your facility by our quality rep to review your quality system? If certified to an accredited third party STOP HERE AND SUBMIT copy of certificate Management Please include Section of Manual / Procedure Does your company have a quality system which is overseen by sufficient authority? Is your quality system reviewed and maintained at regular intervals? Does your company have an organizational chart? Do you have a system for conducting internal audits? Are your quality system procedures available for personnel responsible for the requirements? Contract Review Do you have a documented review procedure that ensures all contract obligations can be met? Document and Data Control Do you have a documented procedure that defines the control and maintenance of documents? What is your length for retention? Handling of Customer Supplied Material Do you have a documented procedure that defines the method of proper material handling? Do you have a documented procedure for notification of damaged customer material? QSF 4.02.4 Rev. NC   943 S. Andreasen Escondido, Ca. 92029 (760)746-6459 Fax(760)745-2511 Supplier Quality Survey Survey Conducted By Page 2 of 2 Process Control Are clearly defined work instructions documented? False Yes False No Are documented procedures in place for reviewing, controlling and updating work instructions? Inspection Are in process inspections and tests performed in accordance to documented procedures? Are the personnel adequately trained who perform functions related to quality? Inspection Measuring and Test Equipment Is measuring and test equipment controlled, calibrated and traceable to NIST? Are documented procedures in place for the identification and calibration of test equipment? Corrective Action Are documented procedures in place that establish requirements for corrective action? Does this procedure define the verification of affectivity? Training Are training records maintained to show personnel have been adequately trained? Print Name of Person Completing Survey: Title: Signature: Date: Office Use Only Does the inquiry and attachments satisfy criteria for approval? Comments Approval Title QSF 4.02.4 Rev. NC Page 7

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Leadership Processes Assessment Page 9

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1.1.1 Strategic Planning- SWOT SWOT will utilize the following gathered information- Financial Analysis Report from the CFO Operations Analysis Report from the COO Technology Analysis Report from the General Manager (are we a “Front Runner”?) Competitive Analysis Report (based on surveys below) Review of Standards- AS9100 Rev. C NADCAP Specifications for Special Processes SEA/LES Surveys gathered- Customer Interview/Survey (see page 6) 5 (Min.) Completed This Survey should be sent to customers within the top 5% of the customer base and repeated among selected customers to develop better business trends. Supplier Interview/Survey (see page 7) 5 (Min.) Completed This Survey should be sent to suppliers within the top 5% of the supplier base and repeated among selected suppliers to develop better business trends. Employee Feedback Forms (see page 8) 8 (Min.) Completed This Survey should be taken from a random sample of 8 to 10 employees involved in the day to day operation of the company. Leadership Processes Self-Assessment Survey (see page 9) 1 per Process Owner Self-Assessment Survey is to be completed by all members of the Lean Management Team and/or Process Owners. SWOT Completion From- Financial Analysis Report Operations Analysis Report Technology Analysis Report Competitive Analysis Report Review of Standards Customer Interviews/Surveys Employee Interviews/Surveys Supplier Interviews/Surveys Leadership Processes Self-Assessment Page 11

Complete as Tentative SWOT Analysis Prior to Planning Session. SWOT Analysis 20XX/20XX Strengths (Internal) Weakness (Internal) 1) Versatile Technology (20XX) 1) Divided Location / Team (20XX) 2) Capacity Level (20XX) 2) Lack of Communication (20XX) 3) Service to Customers (20XX) 3) Lack of Training (20XX)   4) Non-standardized Processes (20XX) Opportunities (Internal and External) Threats (Internal and External) 1) New Sales (20XX) 1) Competition (20XX) 2) New Equipment (20XX) 2) Economy (20XX) 3) New Technology (20XX) 3) Inefficiency (20XX) 4) Better Working Environment (20XX) 4) Healthcare Cost (20XX) 5) Increase in Workforce (20XX) 5) Environmental Impact (20XX) Consider the current conditions within C&H Machine, changes in customer requirements, competition and technology. Does the pre-existing SWOT Analysis still apply to calendar year 20XX? Summary of Analysis: What strengths can we build on that would help us to capture the "Opportunities" or deal with the "Threats"? A) B) C) What weaknesses are there to minimize that would enable C&H Machine to capture the "Opportunities" or deal with the "Threats"? Complete as Tentative SWOT Analysis Prior to Planning Session. Page 16

Complete as Tentative Strategic Goals Prior to Planning Session. Page 17

Complete as Tentative Strategic Goal Planning Prior to Planning Session. Page 18

Use as it applies to the SWOT and Planning Session Preparation Page 21

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1.1.1 Strategic Planning- Planning Session Deployment Meetings 1.1.1 Strategic Planning- Planning Session SWOT and Business Annual Report Vision Review Mission Review Targets & Objectives Value Stream Mapping (if needed) Review Champions Review Process Owners Review Process Maturity Employee Meetings (4) Supplier Meetings (if needed) Customer Meetings (if needed) Department and Individual Goals (if needed) Action Plans Recognition Communication Go over SWOT and Annual Business Report (open discussion after report). Review Company Mission (open discussion after review) Review Mission (open discussion after review) Review Targets and Objectives (open discussion after review) Review Champions (open discussion after review) Review Process Owners (open discussion after review) Review Process Maturity (open discussion after review) Create a value stream of any problem area (if needed) If needed, discuss any matters or issues that arise in deployment. Address these matters or issues and how they relate to (1) thru (6). Revise Goals for Deployment Meetings Page 23

Example Use and Format Only Process Worksheet Example Date 10.14.XX 1.              Name of the Process ___Box Assembly Sub-process of Manufacturing Value Stream Owner Joe P. 2.      Customer Requirements - what each customer or segment needs/expects from your process: Shipping: Quality boxes in batches of 50. with complete paperwork; adhering to shipping schedule; Accounting: Accurate complete traveler 3.      Business Requirements - things the business demands of the process: Within budget, adhering to schedule, no scrap, safety 4.      What triggers the start of the process: Receipt of order from Production Control End of process: Acceptance of completed batches of 50 boxes to Shipping 5. Measures of process effectiveness or efficiency are: Assembly cycle time: $ value of scrapped materials; labor costs Example Use and Format Only 6. SUPPLIERS' SPECIFIC INPUTS Internal or external suppliers' specific inputs -materials, labor,, equipment, software, info. 7. PROCESS STEPS Current steps or tasks involved in the process and job roles. List in sequence, then develop flowchart. 8. PRODUCT / SERVICE OUTPUTS All products and service outputs given to internal or external customers Supplier Names Specific Inputs Steps 1. Review traveler 2. Layout cardboard pieces according to template 3. Select appropriate size tape 4. Sharpen scissors 5. Tape each joint in specified sequence 6. Fold each joint 7. Stack completed boxes in basket, up to 50 per basket 8. Fill in items 6-8 on traveler and sign 9. Place on cart 10. Email shipping re: batch completion 11. Record shift results on work log and email to accounting 12. Receive acceptance reply from accounting Job Role Line/cell lead Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Line lead Line/cell lead Customers Shipping & Accounting Shipping Specific Outputs Completed traveler Batches of 50 boxes in baskets Email Notification Accurate measurement logs each shift Production Control Traveler with box size and color specifications Cardboard sheets Clear adhesive |" tape or 1" tape depending upon box size Scissors Baskets Template Work instructions Purchasing Accounting Quality Dept. Dept. Manager...           Page 24 Managing Process Improvement I

Use as it applies to either the Planning Session or Deployment Meeting(s) Page 25

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1.1.1 Strategic Planning- Deployment Meeting(s) Planning Session Deployment Meetings 1.1.1 Strategic Planning- Deployment Meeting(s) SWOT and Business Annual Report Vision Review Mission Review Targets & Objectives Value Stream Mapping (if needed) Review Champions Review Process Owners Review Process Maturity Employee Meetings (4) Supplier Meetings (if needed) Customer Meetings Department and Individual Goals (if needed) Action Plans Recognition Communication Through the Deployment Meeting(s) share “Improvements” based on- SWOT and Annual Business Report Company Mission Review Targets and Objectives Review of Champions Review of Process Owners Review of Process Maturity Note- The Deployment Meeting(s) can be a further outlet for ideas that may help to refine the goals of the Planning Session. If needed, a Planning Session shall be reconvened to consider these ideas to see how they dovetail into the goals of the coming year. A new abbreviated Deployment Meeting(s) will be schedule to share the goal change(s). Page 27

Process Worksheet Example Date 10.14.XX 1.              Name of the Process ___Box Assembly Sub-process of Manufacturing Value Stream Owner Joe P. 2.      Customer Requirements - what each customer or segment needs/expects from your process: Shipping: Quality boxes in batches of 50. with complete paperwork; adhering to shipping schedule; Accounting: Accurate complete traveler 3.      Business Requirements - things the business demands of the process: Within budget, adhering to schedule, no scrap, safety 4.      What triggers the start of the process: Receipt of order from Production Control End of process: Acceptance of completed batches of 50 boxes to Shipping 5. Measures of process effectiveness or efficiency are: Assembly cycle time: $ value of scrapped materials; labor costs Revise Process Worksheet- based on new ideas discussed on Deployment Meeting(s). 6. SUPPLIERS' SPECIFIC INPUTS Internal or external suppliers' specific inputs -materials, labor,, equipment, software, info. 7. PROCESS STEPS Current steps or tasks involved in the process and job roles. List in sequence, then develop flowchart. 8. PRODUCT / SERVICE OUTPUTS All products and service outputs given to internal or external customers Supplier Names Specific Inputs Steps 1. Review traveler 2. Layout cardboard pieces according to template 3. Select appropriate size tape 4. Sharpen scissors 5. Tape each joint in specified sequence 6. Fold each joint 7. Stack completed boxes in basket, up to 50 per basket 8. Fill in items 6-8 on traveler and sign 9. Place on cart 10. Email shipping re: batch completion 11. Record shift results on work log and email to accounting 12. Receive acceptance reply from accounting Job Role Line/cell lead Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Assembler Line lead Line/cell lead Customers Shipping & Accounting Shipping Specific Outputs Completed traveler Batches of 50 boxes in baskets Email Notification Accurate measurement logs each shift Production Control Traveler with box size and color specifications Cardboard sheets Clear adhesive |" tape or 1" tape depending upon box size Scissors Baskets Template Work instructions Purchasing Accounting Quality Dept. Dept. Manager...           Page 28 Managing Process Improvement I