Kerstin Forrester, President May 25, 2004

IMPROVEMENT EFFORTS Pathways participants – Lean Manufacturing –Sponsored by ONR, BIW, MEP Assessed all facets of company –Order processing –Customer service –Manufacturing Processes Received training grant from ONR Massachusetts Workforce Training Grant

MEP Training Lean Principles Value Stream Mapping 5-S Set-up reduction (SMED) Continuous Improvement Team Building QMS => ISO compliant

Cost Reductions Material costs reduced by 28% Rejections & reworks reduced 5% Productivity improved 60% vs. early 1999 Break-even sales reduced by 25%

METRICFY 2000TARGET CURRENT ON TIME SHIPMENT 85%>98%94% QUALITY AT FIRST PASS 92%98% LEAD TIME 6 – 8 wks1 – 3 wks2 – 4 wks PRODUCTIVITY $56$110$84