2007 Ryko Annual Sales Meeting 2007 Ryko Annual Sales Meeting Quality Delivery Performance 2007 Ryko Annual Sales Meeting 2007 Ryko Annual Sales Meeting

Quality Policy RYKO MANUFACTURING COMPANY is committed to providing customers a quality product in a manner that ensures their satisfaction. This applies to our final customers and to our internal customers. We are also committed to complying with the requirements of our quality system and to continually improve its effectiveness.

Quality 2007 GOALS Increase Out of Box Quality pass % from 50% to 85% by 12/31 Reduce cost of poor quality 20% by 12/31 Increase First Pass Yield at test track from 53% to 75% by 12/31 Reduce warranty and nonconforming product by 20% by 12/31

Out of Box Quality Pass %-Goal 85%

Average issues per OBQ Survey April issues April issues

Out of Box Quality (OBQ) Survey Process OBQ survey comes in Logged in by Customer Quality Support (CQS) Corrective actions (CARs) written for any issues and entered into OBQ survey log CAR routed to appropriate party to perform root cause analysis and corrective action Once corrective action is completed CAR is routed back to Customer Quality Support CQS will contact originator of OBQ Survey to go over findings and any corrective action plans.

OBQ Survey Sales Order # Date: Contact: Serial #’sPhone # / Add. 1. Did you receive your Equipment on time? 2. Was the shipment complete? 3. Were you notified of backorders? 4. Did backorders arrive on time? 5. Was your equipment shipped to the right location? 6. Did you receive your equipment free of any freight damage? 7. During the initial start-up process, did any of the equipment fail to operate correctly? If; yes, please place an X in all that apply: Electrical Water Pneumatic Missing Part Wrong Parts Comments:

Quality Improvements Made Developed training room Weekly meetings with production departments on Test Track and Out of Box Quality data Rollout of Out of Box Quality survey to Distributors OBQ survey led us to chemical pump and tank assy issues. Quality group job rotation developed

In Closing Please help us help you. Fill out and return an OBQ survey after each installation. We need your feedback if we are going to improve Ryko product quality!!

Delivery Performance 2007 Goals Increase OTD on next day priority orders from 86% to 98% by 12/31 Increase OTD for parts/service orders from 87% to 95% by 12/31 WG complete shipments from 62% to 85% by 12/31 Increase OTD for WG shipments from 88% to 95% by 12/31

OTD Next Day Priority Orders-Goal 98%

Stocking Orders-Goal 95%

Equipment Orders % Shipped Complete-Goal 85%

Average number of backorders per equipment order April April

Sales order aging Sales order aging from days to 5.36 days---goal 2 by 12/31

OTD % for Equipment Orders-Goal 95% by 12/31

Delivery Improvements Made Re-design of shipping area Changes to parts shipping process— specialized pullers and shippers Shipping gets electronic notification when priority order goes on system. Expanded priority coverage UPS notification UPS system now pulls ship data from sales order