1. Leadership and Culture SEA Managed Process 1.1.4 Continuous Improvement Process Presented May 24, 2010 www.garkenyon.com Phone: 1(203)729-4900 Email: sales@garkenyon.com

2. Gar-Kenyon Technologies is a leader in the design and manufacture of hydraulic and pneumatic aerospace components..

3. Gar-Kenyon has been designing and manufacturing Aerospace and Defense products for over 50 years. Gar-Kenyon’s origins trace back to 1950 when Kenyon Instrument merged with Gar Precision’s Valve Division. Military programs initially dominated Gar-Kenyon’s revenues, including the A-6, A-10, F-4, F-14, F-15, F-16, F-18, C-130, C-5 and P-3 aircraft. During the 1980’s Gar-Kenyon became more closely affiliated with General Aviation aircraft manufacturers. In the 1990’s Gar-Kenyon partnered in the development of components used in various Regional Jet aircraft.

4. Gar-Kenyon’s products are designed to meet specific customer requirements. We specialize in hydraulic, pneumatic and mechanical devices. Including: Bleed Valves Check Valves Flow Fuses Manifolds Master Brake Cylinders Parking & Emergency Brakes Relief Valves Restrictors Shimmy Dampers Shuttle Valves Toe Brakes Water Fill Valves Flow Gauges

5. Well Known in Aerospace Industry Gar-Kenyon has produced products for over 100 different aircraft. We supply products to many of the major aircraft and aircraft systems manufacturers.

8. Continuous Improvement Process Description 1.1.4 Continuous Improvement Management Process – How does your organization select improvement priorities and review progress on improvement initiatives? How are process owners, master trainers, and strategic champions included in this process? What criteria are used to select priorities for improvement? How are improvement projects and teams selected and given direction? How is a standard problem solving model deployed throughout the organization? How are recognition and sharing of mistakes and successes accomplished?

9. Preparation C onfirm Continuous Improvement team members. Obtain: Strategic plan with goals and targets, Sea Quarterly Report Improvement Plan. Management Quarterly Report. Process Maturity Listing. Process Owner Reports from Monthly Managers Meeting. AS9100 Quality Manual and procedures. Set Continuous Improvement Meeting Agenda Collect Data Collect: Balanced Scorecard. Sea Quarterly Report feedback. Process Owner Reports. 6S and Kaizen project reports. Actions from previous Continuous Improvement Meeting. Reviews Conduct Reviews. Prioritize areas of need. Determine strategies for improvement (6S, Kaizen, Value Stream Mapping). Develop action plans and target dates. Develop goals and measures. Feedback Monitor Progress Collect Feedback. Improve Process. Monthly Review Meeting of Goals, Targets, Action Plans, Champion Reports. Quarterly Employee Meetings to review company performance, goal status, and obtain employee feedback. 1.1.4 Continuous Improvement Process Flow

11. Agenda for Continuous Improvement Meeting Objectives of Meeting Review progress on continuous improvement projects and process maturity efforts. Participants: Continuous Improvement Team and Process Champions. Preparation: Meeting Owner to send out agenda to participants 5 days prior to meeting. Request Process Owners and CI Team have current progress updates on actions. Obtain Strategic Plan, SEA Quarterly Report Improvement Plan, Management Quarterly, Process Maturity Listing, Process Owners Reports from Monthly Meetings. (continued)‏

12. Agenda Continued 1. Review of prior meeting action items 2. Review progress roadmap and managed processes. Review current process maturity levels. Review results from recent process improvement projects. Identify and prioritize new process improvement projects. Set new process maturity goals for roadmap and managed processes. 3. Leadership Recognition and Communication Identify employees and teams that should be recognized for successes, and plan recognition. Identify communication needs and update communication plan. 4. Summarize and evaluate actions from the meeting Ensure one owner per item with clear measures and deadlines.

13. GAR-KENYON STRATEGIC PLAN FY2010 Vision Statement We will increase revenue 50% by 2012 using lean processes company wide to become the preferred source for custom engineered fluid power aerospace components On Time Delivery Champion: Metrics: Cust. OTD Chart Actions 1. Establish Metric Methodology 2. Implement Reporting 3. Analyze 10 latest each month using Root Cause Analysis, Trends, Actions 4. Level Load Assy & Test Kaizen 5. Overhaul & Repair Kaizen 6. Develop labor reporting plan Eliminate Escapes Champion: Metrics: Escapes, DPMO Actions 1. Establish Metric Definitions & Methodology 2. Implement reporting 3. Analyze root cause and corrective actions for 3Q & 4Q escapes 4. Plan for Standard Work and Training New Business Development Champion: Metrics: RFQ's / Proposals Actions 1. Establish Metric Methodology 2. Implement Metric Reporting 3. Develop Strategic Marketing Plan 4. Kaizen PMA Process S.E.A.Stage 1 Certification Champion: Metrics: S.E.A Metrics Actions 1. Self Assessment (Current State)‏ 2. Establish Action Plans 3. Employee Site Visits 4. Submit New Change Management Plan to S.E.A. For Comment Monthly Management Review on 2 nd Monday of Each Month Agenda to be distributed 5 business days prior to meeting. Agenda to include: Goal Reports by each Goal Champion including metrics, analysis & root cause, status against action plans. Performance Improvement Plan review. Customer Scorecard review. Communications Plan and Training Plan. Kaizen reports and newspapers as required. STRATEGIC GOALS

15. Employee Review Agenda Strategic Objectives Performance Scorecard SEA Activity Continuous Improvement Activity Quality Employee Feedback Closing Comments

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