Nick Sykes Greg Gannon Lean CoordinatorProduction Manager 12/05/11

Company Overview  The company has four key focuses:  Quality  On-time Delivery  Communication  Pricing  Awarded SEA’s Leadership & Culture Award and Supply Chain Innovation Award  Hixson has been servicing the military, aerospace, and commercial aircraft industry for over 50 years.  Our 40,000+ square foot facility, located in Newport Beach, is home to over 120 employees.  SEA Stage 1 Certified Supplier  Nadcap Certified  AS9100/AS9110/ ISO9001 Certified 2

Hixson’s Capabilities  Anodize  Chem Film  Cad Plating  Nickel Plating  Tin Plating  Chrome Plating  Copper Plating  Gold Plating  Silver Plating  Black Oxide  Vacuum Cad  Shot Peen  Passivate  NDT  Phosphate  Painting  Brush Plating  Grind 3

Assessment Details Collect and review feedback from CI objectives Ongoing Implement Details Implement improvement objectives based on CI schedule Utilize PDCA methodology Ongoing Continuous Improvement Management Process Champion: Doug Greene Process Owner: Greg Gannon Master Trainer: Nick Sykes Key Steps in Process: Inputs Details Quarterly Report Audit Feedback Kaizen/CI projects schedule/results Process maturity listing Process Owner feedback Master trainers feedback Value Stream Maps Preparation Details Prepare Continuous Improvement Management Plan Annual Collect Data Details Collect Quarterly Report feedback Compile process owners and master trainer reports Compile Kaizen and CI project report outs Internal & external audit results HMF EDS Create Value Stream Maps Annual Review/Plan Details Create improvement objectives based on assessment of collected data Select CI teams Create CI schedule Annual Outputs Details Continuous Improvement Management Plan CI Schedule REFDOC://VSM_1.1.4_ContinuousImprovementManagementProcess_RevB.pptx/NSykes

Prioritizing Improvement Projects 5 Impact on Key Business Objectives Urgency for Implementation Project 1 Low High Project 2 Project 4 Project 3 Project 5 Project 6

Types of Improvement Projects 6 Type of Improvement ProjectKey Benefits Kaizen Events Rapid improvement, focused on elimination of waste in value stream 6S Events Rapid improvement, focused on organization and cleanliness Lean Six Sigma Project Longer term improvement utilizing DMAIC methodology, focused on removing waste and reducing variation in processes Training Development Project Focused on employee skills development and standard work

Project Charter 7

PDCA 8  PDCA is Hixson’s overarching continuous improvement methodology  Example: Kaizen event follow-up occurs at 30 days, 90 days and 1 year

Define Communication Methods  Function of Leadership Communication Process  Define: Message, Channel, Audience, Originator, and Frequency  Hixson’s Primary C/I Communication Channels:  Kaizen Report Outs  Department Dashboards  Improvement Wall  Newsletters  Graduation Ceremonies 9

Improvement Wall & Dashboards 11

Thank You! Contact Information: Nick Sykes Lean Coordinator (949) ext