1 Delta Industries… AS9103 Implementation & Benefits Presentation for I.A.Q.G. October 7, 2005 Dave Wentworth - C.I. manager

2 Facilities 75,000 Square Foot Climate Controlled75,000 Square Foot Climate Controlled Current census 110 employeesCurrent census 110 employees ISO 9001:2000 Registered / AS 9100 Rev A CompliantISO 9001:2000 Registered / AS 9100 Rev A Compliant NADCAP Accredited (Welding, Brazing, NDT)NADCAP Accredited (Welding, Brazing, NDT) FAA Repair Station #FAA Repair Station # NA1R341K Network of 125 Sub-tiers

3 Product Sample Fabricated Ring Manifold Welded to Casting Sheet Metal Fabrication Forged and Machined Ring Cast Bosses Welded to Ring Fabricated Band Resistance Welded to case Installation of Vane Assembly Cast Vanes Welded into Assembly

4 Delta’s Continuous Improvement Journey Origin of C.I. Culture 2003 Implement team processing & reprocessing approach 2002 T.P.M. Cutter Grind Develop Root Cause database 2000 Initial Large Machining & Fabrication cells Fabrication cell Reprocessing for flow in cells P&W A.C.E Establish CI Dept. Six Sigma training Various CI Projects 1997 Top Level Commitment Strategic Planning of Culture Change rd Large Machining cell Only Product specific cell World Class C.I. Culture th Large Machining & Turn Cells Process Certification UTC Value Stream Mapping Achieve P&W Gold Supplier 1999 Co-founded A.C.M, Aggressive Benchmarking All Employees Trained in lean concepts First Pull System, extraordinary success with Kanban Pilot cell, Design & build for small processes Delta Industries Proprietary

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6 Delta 1990’s Prior Culture

Pre-Cell TURN DEPT MILL DEPT Delta Industries Proprietary

8 Machine Foundations Removing Walls

9 Work in process

10 5 Year Transformation to Present Delta Industries Proprietary

11 Present Culture

12 Why 9103 Now? Customer Driven – Clear objectives & milestones (Total Involvement) Timing – Fit into our culture of continuous improvement (We were ready)

13 Key Implementation Steps Data Collection (Establish method and location) Measurement System Analysis (Create / Achieve / React)

14 Example

15 Key Implementation Steps Key Process Inputs (Select & determine control method) Control Plan (Development / Implement / Refine)

16 Some Benefits From 9103 Addressing of irritating issues Remove the “it’s good enough attitude” Focus on upstream processes (Plan for success) Documentation of expert knowledge (Best Practices)

17 Issue - In order to produce a blueprint part a smaller size must be targeted and at times operator would have to creep up to the finish cut Machining Example

18 Performance - Maximum CPK obtained =.9 Machining Example

19 Root Cause = Sequence of turning Corrective Action = Turn groove first BeforeAfter Groove cut after top dia. Groove cut before top dia. Result = Sustainable CPK of 2 + Machining Example

20 What’s The Real Benefit? Time – Eliminate “creeping up on” re-cuts (Rework / Yield) Flexibility – Operator experience a non-factor (Better operator utilization) Standardization – Lessons learned (Implement standard changes to all programs)

21 Before process control – Upstream processes were manufactured to blueprint requirements After process control – Upstream processes controlled to enhance the welding processes Detailed mapping of process is critical to visually understand key inputs Welding Example

22 Preemptive Root Cause - Grain structure variation of details being welded Corrective Action - Upstream process controlled (Material thickness tolerance tightened to high side) Result – Sustainable C.P.K. of 1.5 Issue - At contract award notified that manual weld process had high M.R.B. activity related to material thinning (KPC) Plan for Success

23 Before 9103 – Replacing tungsten in torch was based on operator experience After 9103 – Control plan states Replace tungsten immediately if: 1)Oxidation occurs 2)Wire contacts tungsten 3)Or any other sign of contamination Best Practices Learned

24 Before 9103 – Changing inserts was based primarily on operator interpretation of need CNC programs had “check insert” points After 9103 – Control plan dictates tool change points in CNC program During debugging & approval process of programs experienced operators determine tool change points Best Practices Learned

25 Process control perceived as labor intensive (A large company initiative) A balanced diet of customer interaction & flexibility (Appropriate characteristic selection) Suppliers need to discover the benefits (Positive payback) Summary