Strategic Planning Process - 1.1.1 04/02/12 Nick Sykes Lean Six Sigma Black Belt

Company Overview Hixson has been servicing the military, aerospace, and commercial aircraft industry for over 50 years. 130 Full-time Employees SEA Stage 1 Certified (2010) Nadcap Accredited AS9100/AS9110/ ISO9001 Certified Awarded SEA’s Leadership & Culture, Leadership Excellence, Supply Chain Innovation, and Operational Excellence Awards

Hixson’s Capabilities Anodize Black Oxide Chem Film Vacuum Cad Cad Plating Shot Peen Nickel Plating Passivate Tin Plating NDT Chrome Plating Phosphate Copper Plating Painting Gold Plating Grind Silver Plating More…

Strategic Planning Process 1.1.1 Champion: Doug Greene Process Owner: Debbie Sykes Master Trainer: Debbie Sykes Key Steps in Process: Preparation Details Choose team members Gather Analysis Tools/Inputs Annual: Jan-Mar Assessment Details SWOT Analysis Customer Interviews/Surveys Employee Interviews/Surveys Supplier Interviews/Surveys Annual: Jan-Mar Planning Session Details Review/Revise: Report Outs SWOT Vision Goals & Timetables Objectives – Action Plans, Targets Scorecard/Metrics Value Streams Champions Process Owners Quarterly: April (Begin) Implement Details Document Procedures Training Supplier Collaboration Customer Collaboration Communicate Goals Department Objectives Ongoing Inputs Details Financial Analysis Operations Analysis Environmental Compliance Technology Analysis Markets Analysis Competitive Analysis Standards – AS9100, AS9110, SEA, Nadcap, FAA Outputs Details Strategic Goals Change Management Plan Balanced Scorecard Objectives REFDOC://VSM_1.1.1_StrategicPlanningProcess_RevB.pptx/Nsykes

Customer Surveys Sent to customers annually Feedback is a direct input to strategic plan

SWOT Analysis Internal: Strengths and Weaknesses External: Opportunities and Threats STRENGTHS Turn times Employee Moral Customer retention Heads above competition in top leadership The Reagan Attitude “Trust but Verify” Capital Improvements Nimble, Flexible to market Great customer intimacy Always say “yes” and figure out how to do it Always creative Thrive on change Visual presence (standard of appearance) Lean Maturity (C/I) Take risks Approvals (active) SEA Member (Chairman position) WEAKNESSES Follow through on previous problems solved Older process lines Communication Losing “trust but verify” battle-cry Lack of leadership in middle-management (leads, etc.) Lack of new hire orientation Travelers (inconsistencies & processors) Maintenaince OPPORTUNITIES New approvals Unprecedented growth in commercial aircraft industry Ability to take on complex processes to set HMF apart from competition Partnering with 3rd tier suppliers Improving turn times Workforce development (training) Expand pick-up and delivery service (route management) NDT growth THREATS Environmental spill or disaster Prime disapprovals Natural disasters Aerospace market downturn

Hixson’s Vision Statement – 2012 Long-term overarching goal BHAG: Big Hairy Audacious Goal Central focus for all strategic goals Hixson’s Vision Statement – 2012 …to be THE premier processing company to the Aerospace and Defense Industry; recognized for revolutionizing the metal finishing experience for our partners and employees.

Strategic Goals Strategic goals should be SMART Specific Measurable Attainable Relevant Time-bound

One Page Summary Statement

Department Objectives Cascade responsibility down to each department Target Goal

Balanced Scorecard

Thank You! Contact Information: Nick Sykes Quality/Continuous Improvement (949) 645-4800 ext. 4641 Nick@hixsonmetalfinishing.com www.hixsonmetalfinishing.com