1. ALPHA Aviation Components, Inc.

2. 16,000 square feet of production space
Production Equipment
16,000 square feet of production space
1. CNC Dept: 10 CNC Lathes, 2 (4 Axis) Horizontal Mills, 6 (4 Axis) Vertical Mills, 2 (5 Axis) CNC Mills.
2. Screw Machine Dept. 4 Citizen Screw machines and 3 Levin Micro Lathes.
3. EDM Dept: 1 Wire and 1 Sinker EDM.
4. Grinding Dept: 4 Myford Grinders, 1 CNC Surface Grinder, 2 Manual Surface Grinders, 1 Centerless Grinder, 1 Thread Grinder and 1 Gear Hobber.
5. Manual Dept: 3 Manual Lathes, 3 Manual Mills.
6. Honing Dept: 2 Sunnen Honing machines.

3. Statistics
4,000,000 in sales 2008
53 active customers in Aerospace, Medical, Automotive Including Goodrich, DOD, Department of the Air Force, Parker, Eaton, Fairchild Controls, GE, Honeywell, JPL, Woodward HR Textron, NEA Electronics, Honda Performance Racing and Wesco Aircraft.
39 Employees.
AS9100 and ISO 9001 Certified.
Member of SEA.

4. Mission
to be a world-class supplier of high precision machine parts and assemblies.

5. Areas of Improvement.
In the beginning of 2009, we identified 6 core areas that needed improvement to help meet our mission objective.

6. Areas of Improvement.
1. Quoting: We wanted to improve our quote response time and provide competitive pricing to our customers.
2. Pricing and Production Control: Our JobBOSS MRP systems database needed to be re-created. Adjusted burden and labor rates to provide competitive pricing.
3. Clean up and Organizing: 6S the entire company. WIP and Finish goods inventory needed to be re-located. Shipping and Receiving department needed re-organization.

7. Areas of Improvement.
4. Replace and upgrade equipment: Old Production machines and inspection equipment needed replacing and upgrading.
5. Throughput and Set-up Reduction: Improve the shop structure by removing, and rearranging shop equipment to maximize throughput and efficiency. Create a tool area where carts are pre-kitted to reduce set-up time.
6. Training: Process maturity mapping and training aides. Company wide training effort in the SEA system, inspection techniques for shop operators and cross train to become 2 to 3 deep on all positions company wide.

8. Quoting
1. Improved Quoting System. Mapped out the quoting process, assigned quoting process owner, created quote status system.
2. Added another MSE to our engineering department. To support the quoting and production planning efforts.

9. Quote flow chart

10. Quote Status System

11. Results of improved Quote System.
Before improvements…
Quotes took 5 to 10 days to process. Quote hit ratio was 12.17%.
After improvements…
Quotes typically now take 1 to 3 days to process. Quote hit ratio in January 48.65%.

12. Results of new JobBOSS database and ShopBOSS
1. New JobBOSS database with re-defined work centers and costing rates resulted our quoting to be more competitive.
2. ShopBOSS advance scheduling allows us to schedule our quotes accounting for current and future shop load providing accurate lead times.
3. ShopBOSS provides the visibility and the tools to be more flexible with our production schedule, reacting to changing conditions and customer needs.

13. ShopBOSS
Displayed is current capacity and shop load down to each Work Center providing visibility to react to changing production schedules.

14. Kaizen Events and 6S

15. Cluttered and un-organized. Moved Inventory to new location.
Inventory room before.
Cluttered and un-organized. Moved Inventory to new location.

16. Conference / Training room now.
Inventory room is now Conference Room.

17. Area had miscellaneous and seldom used equipment.
Inventory room before.
Area had miscellaneous and seldom used equipment.

18. Organized and systematic.
Inventory Room now.
Organized and systematic.

19. Screw Machine Department Before.
OLD HARDINGE LATHE REMOVED

20. Screw Machine Department After.
3 Levin Micro Lathes and inspection microscope located in Screw Machine Department centralizing all small diameter turning work into one area.

21. No central staging area.
CNC Department Before
No central staging area.
FADAL MILL REMOVED

22. Staging Area in place where kitted carts wait for set-up.
CNC Department After
Staging Area in place where kitted carts wait for set-up.

23. Kitted Cart.
All required tooling and in-process inspection gages are placed on the cart prior to set-up.

24. Shipping / Receiving Before.

25. Shipping / Receiving After.

26. Assembly Room Before.

27. Assembly Room After.

28. Tool Room Before.

29. Tool Room After. Clean up and organizing continues.

30. 20K Upgrade to our Mitutoyo CMM completed.

31. Other Milestones of Q1 2009
Passed our AS9100 Surveillance audit with ZERO findings.
Added Wesco Aircraft to our customer base.
Awarded Flight Critical Safety Certification from Woodward HR Textron.
Awarded Bell Helicopter Crank assemblies from Woodward HR Textron.
Woodward HR Textron approved AACI for the F-18 Piston line previously manufactured in house by offering a more competitive solution.

32. SEA
1. Submitted the first SEA Quarterly Report and was accepted. AACI is now listed as Membership Plus Status with SEA
2. Identified 127 company processes and assigned Owners, Trainers and Subject Matter Experts to each process.
3. Identified 19 Value Streams and assigned Owners, Trainers and Subject Matter Experts to each Value Stream. One Value Stream has been mapped.

33. Company Projects Next 1 to 12 Months
Finish Physical inventory and populate JobBOSS inventory database. Make surplus inventory available on-line.
Document 100% all Company Value Streams and Training Aides.
Continue to develop and deploy Training for SEA Roadmap and various production, inspection and office cross training to support the strategic goals of the company.
Devise and implement effective shop floor inspection supported by the Quality Department.
Continue 6S effort company wide including Tool Room, upgrade lighting and painting the production area floors.
Conduct time motion studies. Continue Set-up and production time reduction efforts.

34. Company Goals Next 1 to 12 Months
The SCMG Membership.
Grow company sales 10%.
Improve the average on-time delivery from 96% to 100%.
Improve overall quality from 97.5 to 100%.
Truly understand how to calculate and use Inventory Turns to help increase cash flow to reinvest back into AACI.
Obtain additional ship set assembly work.
100% complete company value streams.
Full Engagement with SEA.

35. What ALPHA can offer SCMG.
ALPHA Aviation Components, Inc. staff has over 150 combined years of extensive, high level experience in various facets of American industry's including;
Aerospace Commercial Defense Medical Military
This diverse background enables us to draw from a wealth of ideas gleaned from the experience in each of these industries and utilize the “cream of the crop” of proven successful solutions.
Furthermore, we are able to offer and share with our SCMG members new insights and ideas to our customers, and partnered suppliers, enabling closer, more profitable relationships as we are able to anticipate situations which arise higher up the build chain with final assemblies, which frequently contain products and services from these same.

36. What ALPHA can offer SCMG.
+ AACI
165
188
Direct Employees (Parts producers, including deburring) 15 19
Engineers
100
103
Inspectors
113
Support Staff (Indirect Labor / Admin., Receiving, Driver) 57 65
CNC Lathes (Excluding "Lathes with Mill/Turn or dual Spindles" below) 14 17
Lathes with Mill/Turn or dual Spindles 3 7
Screw / Swiss type Machines 54 59
CNC Vertical Mills (Excluding "CNC 5 Axis Vertical Mills" below) 8 10
CNC 5 Axis Vertical Mills 20 22
CNC Horizontal Mills 5
EDM Machines 18 -
Thread Rolling Machines 9 11
Hones 27
Grinding Machines 1
Gundrilling Machines 13
CMMs

37. What ALPHA can offer SCMG.
+ AACI 2 -
Laser Marking Machines 33 36
Manual Lathes 44 48
Manual Mills and Drill Presses 46 58
All other Support Machines
SCMG
+ AACI
$60,000,000
$64,000,000
Estimated Annual Sales for 2008
2,625
2,677
Total number of Active Customers Served 7 8
AS9100 / ISO9001 Certification -
Certified Employees (ASQ, SME, Six Sigma, Etc.)
172,500
188,500
Total Square Footage of all facilities
28,680
29,544
Approximate total Number of hours of Operation per Year

38. Why should ALPHA be in the SCMG.
William Tudor, Alpha Aviation Components, Inc. Vice President and Partner has been a SCMG member for the past 4 ½ years and SEA for the past 3 years.
Alpha Aviation Components, Inc. shares the same values and goals expressed by SCMG including commitment to SEA.
Alpha Aviation Components, Inc. is a local company.
Alpha Aviation Components, Inc. is excited to collaborate and share our ideas and best practices with the SCMG to best serve our industry.
Alpha Aviation Components, Inc. understands that the SCMG was built on trust and will keep all information confidential unless otherwise approved by the group.
Alpha Aviation Components, Inc. will attend every meeting and function because we want to. Participate and offer any assistance to any member of our group because we want to.

39. Thank you.