2.  Watson Engineering  Rich Parzuchowski  On-Time Delivery  Challenges, Solutions, and Benefits  Future Opportunities  Career Lessons

4. Light Metal Fabrication Laser Welding & Cutting Customized Automotive & Machine Parts 345 Total Employees $40 million Total Revenue

5. Rich Parzuchowski Assistant Plant Manager

6. Greenbelt Six Sigma Quality Project July 2010 – April 2011 On-Time Delivery Goal Not Being Met Collected Process Data to Solve Problem Created Process Map Project Team – Material Planners: Quality Control, Machinist, Warehouse Personnel, Clerical Representative, Quality Manager

7. The Team Mapped Out their Entire Process on the Wall Before Doing Anything Else

8. Not Meeting the Required Goal of 95% On Time Delivery 2008-2011: Average Supplier Shipping Delivery Performance Customer Satisfaction Rating of 75% Parts per Million (PPM): 2010 – 4,414 PPM Goal: 0-550 Additional Inspection & Labor Costs Visibility & Future Opportunities Affected On-Time Delivery: July-December 2009

9. 1. Identify Issues Affecting Delivery 2. Gathered Team of People From Each Department 3. Analyzed Process with Flowcharts 4. Called in 2 Individuals Knowledgeable of Operating System 5. Rapid Improvement Workshop (RIW) – Targeted Areas of Process Not Adding Value 6. Laid out Inventory in Parking Lot and Recorded What They Had 7. Barcode System 8. Delegated Responsibilities with 30/60/90 Action Plan Form 9. Identifying and Rearranging Duties (Firing Individuals Not Meeting Quality Standards)

10. PROCESS MAP 60 steps Non-Value Add: 11 moves = 18% 1 wait = 2% 37 checks = 62% Value Add: 11 work = 18%

11. Warehouse Daily Chart Used for Recording Reasons for Items Not Shipping

12. Planning/logistics Item #What - (problem, action, & expected result)WhoWhenFinal Result 1 2 3 4 5 6 7 8 9 10 30/60/90 day action Plan Form Used to More Easily Delegate Responsibilities Size of the Project Determines if it is 30, 60, or 90 Days

13. Challenges 1. Listening to Ideas of Others 2. Employees Not Meeting Required Performance Level 3. Customer “Turned up Dial” on Required Quality; Lost Focus 4. Individuals Not Receptive to Changes 5. Trying to Avoid Being a Dictator 6. Continuous Improvement Solutions 1. Asking Opinion Before Changing Things 2. Went Through 3 Warehouse Managers & 4 Quality Planners 3. Dropped Customer 4. Let Go of Employees Who Did Not Buy In 5. “This is Not My Meeting; It’s Our Meeting” 6. Implemented Continuous Improvement (CI) Board

14. Continuous Improvement Board

15. Qualitative Benefits Recognized as World Class Supplier Excellent Communication with Logistic Planning Analysts Have Time to Focus on Improving Not as Overworked and Stressed Went from Unpainted Inventory to Painted Inventory to Achieve Faster Lead Times

16. Increased Visibility of Inventory Has Allowed for Inventory Reduction and More Floor Space!

17. Quality Rejection Savings: 2010-2011: $23,693 2011-2012: $13,517 2012-Present: $119,672 Inventory Manual Data Input Savings: 2010-2013 - $60,000 Reduction in Hot Truck Total Costs: 2009: 36 Hot Trucks - $36,000 2010: 12 Hot Trucks - $18,000 2011-2013: 2-3 Hot Trucks - $2,500-$3,600

19. WATSON’S DELIVERY FOR DEC-FEB 2011 Achieved 99% Customer Satisfaction on Delivery Above Goal of 95%!

20. Bringing in New Business; Quoting Daily Want to Achieve Higher Percentages in Other Fields: Automotive Defense Recreational Prototype Specific Projects to Improve on: Throughput Efficiencies Downtime Inventory Control Work in Process

21. Most Rewarding – Hands-on Job Learn Something New Every Day Make a Successful Impact on the Company Most Challenging – Different Personalities of Employees Knowing How to Approach, Interact with, and Relax People Meeting High Expectations of Customers Most Contributed to Career Success – Dedication and Passion for His Job Always Puts Forth 110% Effort