Management Review Maurice Fitz-Gerald President-Sales Manager Terri Gaquerel General Manager Adam Hunt Financial Officer Danny Pike Engineering Manager Steve Williford Q.A. Manager

The System

NACCI’s QUALITY POLICY

ISO 9000:2008 CERTIFICATION

OUR QUALITY OBJECTIVES A.) Quality/Manufacturing: Zero defects at customer, Goal:0% B.) Sales: 100% Sales to Budget, Goal:100% C.) Administration: Customer Average Days to Pay, Goal:55 days D.) Manufacturing: % of Weekly Production Schedule, Goal:100% E.) Manufacturing/Quality: Casting Production Scrap, Goal:<8% F.) Administration/Manufacturing: On Time Delivery, Goal:100%

NACCI uses several software packages in monitoring the quality system JobBoss is used to Graph Such Items as: Scrap, Delivery, Metal Usage, Customer Complaints As well as Customer Returns. (All items from JobBoss are reported directly to production floor daily thru an electronic bulletin board) GagePack is used for Calibration of Gauging Equipment QTK is used for recording NC’s, RMA’s, PA, & Verification of any and all Quality Issues

The Process

All Raw Materials Must Be Processed through a Receiving Inspection for Verification and Color Code Marking conducted by Quality Control.

Once a Job is scheduled it is communicated to the production staff through the JobBoss- ShopProd system and to the operators thru the electronic board and the Traveler (see next slide). A traveler provide all necessary information to the operator who will run the casting machine. The Traveler also provides added instructions to the inspection process including previous Quality Alerts.

Add Traveller-elec board

training

CASTING PRODUCTION SCRAP

CUSTOMER RETURNS Zero DEFECTS

CORRECTIVE ACTIONS CARs FOR NON-CONFORMING PRODUCT ARE REVIEWED, AT A MINIMUM BY THE QA MANAGER, ENGINEERING MANAGER TO ALLOW FOR CAPTURING THE ASSOCIATED QUALITY COSTS IN THE JOB. CARs FOR CUSTOMER COMPLAINTS REQUIRE AN INITIAL RESPONSE TO THE CUSTOMER WITHIN 48 HOURS OF RECEIVING THE COMPLAINT. We had 18 CARs recorded January 1 st through June 30 th and are broken down as: Manufacturing defects 11 Vendor defects 02 Written Customer Complaints 03 Internal Audit Findings 02

PREVENTIVE ACTIONS PREVENTIVE ACTIONS ARE TO DEAL WITH POTENTIAL NONCONFORMITIES. PARs ARE REVIEWED, AT A MINIMUM BY THE QA MANAGER, ENGINEERING MANAGER TO ALLOW FOR CAPTURING THE ASSOCIATED QUALITY COSTS. PREVENTIVE ACTIONS MAY BE INITIATED AT THE DESCRETION OF THE EXECUTIVE COMMITTEE, DEPARTMENT MANAGERS, & SUPERVISORS. We had 9 PARs recorded January 1 st through June 30 TH and are broken down as: Fixture01 Spreader wear with Concoa casting die was repaired. Internal Audit Finding02 Form revision date did not match Control Document Master List. No CT-01 forms on file with engineering to proof procedure followed. Policy00 Process01 Torque Wrench setting to Newton vs FT LBS. Instructions to check and set added to traveler. Procedure00 Tooling01 Under size chamfer on small bonnet die repaired eliminating burr being left at the CNC tapping operation.

North American Casting Corporation, Inc. Organization Chart President/Sales Manager Maurice FitzGerald General Manager Terri Gaquerel Quality Manager Steve Williford Quality Auditor Financial Officer Adam Hunt Plant Manager Doug FitzGerald Casting Manager Lionel Gaquerel Engineering Manager Danny Pike Maintenance Manager Rick Cooper Shipping & Receiving Casting SetupDie Shop/Machinist Associates Secondary Secondary Associates Casting Associates