1. Precision Manufacturing Co. Pamela Mauti Ryan Trengrove Eliezer Aldorando Jim Williams

2. Overview Precision Background Precision Background Assurance Services Assurance Services SWOT Analysis SWOT Analysis Recommendation Recommendation Strategy Map Strategy Map

3. Precision Manufacturing Co. Mission Statement: Mission Statement: “To be the world leader providing quality products and services to our customers while striving to exceed their expectations at best value and foster an environment for continuous improvement, cooperation, combined trust and respect with all employees and suppliers.”

4. Company Background Precision Precision Founded in 1960 – Tool & Die Shop Founded in 1960 – Tool & Die Shop 1970 – Expanded into Parts Manufacturing 1970 – Expanded into Parts Manufacturing Award-Winning Award-Winning Metal Stamping, Tool and Design Co. Metal Stamping, Tool and Design Co. ISO 9002 & QS 9000 Certified ISO 9002 & QS 9000 Certified $30 Million in Revenues Annually $30 Million in Revenues Annually

5. Company Background Industries Served: Industries Served: Medical Medical Telecommunications Telecommunications Automotive Automotive Other Markets Other Markets

6. Assurance Services Independent professional services that improve the quality of information for decision makers Independent professional services that improve the quality of information for decision makers Improve reliability and relevance of information used as the basis for their decisions Improve reliability and relevance of information used as the basis for their decisions

7. Business Performance Measurement Integral Part of Management Control System Integral Part of Management Control System Efficiency and Effectiveness Efficiency and Effectiveness Setting Appropriate Targets Setting Appropriate Targets

8. Business Performance Measurement Balanced: Balanced: Financial and non-financial measures Financial and non-financial measures Leading and lagging indicators Leading and lagging indicators Trade-offs between measures Trade-offs between measures

9. Assurance Services CPAs Perform CPA Performance View CPA Performance View Help management identify and measure critical success factors Help management identify and measure critical success factors Assist in updating and reevaluating plans Assist in updating and reevaluating plans

10. SWOT Analysis: Strengths Tool Innovation Tool Innovation Market Diversity Market Diversity Quality Systems Quality Systems Customer Service and Responsiveness Customer Service and Responsiveness

11. SWOT Analysis: Weaknesses Marketing and Sales Capabilities Marketing and Sales Capabilities Early Involvement in the Product Development Process Early Involvement in the Product Development Process Price Competitiveness Price Competitiveness

12. SWOT Analysis: Opportunities International Markets International Markets Process Innovation Process Innovation Advance Prototyping Capabilities Advance Prototyping Capabilities

13. SWOT Analysis: Threats Foreign Competition Foreign Competition Product Obsolescence Product Obsolescence Availability of a Skilled Workforce Availability of a Skilled Workforce

14. Strategy Strengths are consistent with Strategic Objectives Strengths are consistent with Strategic Objectives Lack of Strategic Objectives for Weaknesses Lack of Strategic Objectives for Weaknesses Opportunities are addressed by Strategic Objectives Opportunities are addressed by Strategic Objectives Develop Strategic Objectives for Threats Develop Strategic Objectives for Threats

15. Customer Value Proposition Value Proposition Basic Requirements Differentiators Product Quality & Price Product Quality & Price Consistent Quality with close tolerances Consistent Quality with close tolerances Speed to Market Speed to Market Tooling Innovation Tooling Innovation Company Quick Response Company Quick Response

16. Customer Value Proposition: Customer Performance Measures Customer Response Time Customer Response Time New Developments Time to Market New Developments Time to Market

17. Recommendation: Positive Observations Financial Statements Financial Statements Additional Management Additional Management Company Reputation Company Reputation Operations Performance Measures Operations Performance Measures

18. Recommendation: Negative Observations Inventory Management Inventory Management Sales and Marketing Efforts Sales and Marketing Efforts Performance Measure Identification and Balance Performance Measure Identification and Balance Measurement of ROI Measurement of ROI Customer Measures Customer Measures Employee Measures Employee Measures

19. Recommendations Financial Financial ROA ROA Sales Sales Net Profits Net Profits COGS COGS Customer Customer Delivery Time Delivery Time Satisfaction Satisfaction

20. Recommendations Internal Business Processes Internal Business Processes Inventory Management Inventory Management Resource Effect Resource Effect First Run Yield First Run Yield Innovation and Growth Innovation and Growth Training and People Training and People New Scorecard New Scorecard

21. Benefits of Recommendation Expand Primary Focus Expand Primary Focus Non-operational performance measures Non-operational performance measures Non-financial performance measures Non-financial performance measures Balanced Scorecard Balanced Scorecard Financial Performance Financial Performance Improved customer service Improved customer service Tighter internal processes Tighter internal processes More adept employees More adept employees

22. The Balanced Scorecard Strategy Map Improve Shareholder Value Revenue Growth StrategyProductivity Strategy Increase ROAGrow SalesIncrease Net ProfitDecrease Costs A Motivated and Prepared Workforce Shareholder Value ROCE  New Revenue Sources  Customer Profitability  Cost per Unit  Asset Utilization Price Financial Perspective Customer Perspective Internal Perspective Learning & Growth Perspective Product/Service Attributes Training Matrix New Business Scorecard Training Hours Logged “Inventory Management” “Increase Resource Effect” “Increase First-run yield” “Process Capabilities” (Inventory turnover) (Resource Effectiveness Ratio) (Quality at the Source) (Regulatory & Environmental Processes) Customer Value Proposition Quality Operational Excellence Customer Intimacy Product Leadership  Improve Customer Satisfaction  Customer Acquisition  Customer Retention TimeFunctionServiceRelationsBrand RelationshipImage  Market Share

23. Any Questions?