1. Rotor Cell Productivity Improvement Dresser-Rand Olean, NY January 18, 2013

2. Improve throughput in Rotor Cell 3 different deliverables/goals: Heat Treat Layout and Storage Balance and Over speed Storage Lean Principles: Visual Status of WIP and Production WIP prioritization What do you want to know about a part on the floor?

3. Constraints Fit within space: 10’x17’ Accessible from over-head crane Accommodate large impellers (80% 24 inch) Accommodate high volumes (20-30 impellers) Load Rated 2,000 lbs per shelf Goal Reduce foot print Utilize vertical space Storage space for 20-30 impellers Flexibility in layout for future expansion

4. Weight (1-5)Roll Out-RacksPull Out Bleacher StyleFixed StepsFlow Through Pallet Racks Access-ability from Crane510887 Footprint Reduction48852 In-Use Foot Print47352 Move-ability37442 Safety475510 Ease of Use38557 Ability to Organize310554 Risk of Parts Damage466610 Score237170166170 Keeping Ergonomics in mind, height would be limited to 4 ½ ft

5. Approximately $3,000 -$5,000 per Rack depending on size and style.

16. Constraints Accommodate varying balance plate sizes Fit within current space 12’ x 20’ Maintain organization methodology (by size) Make large plates accessible to over-head crane Space for future plate storage (+10%) Goals Implement 5S in design Reduce foot print Improve Lay-out Layout flexibility for future growth

18. Add more shelves to current design. Layout: Reposition shelving so shelves are back-to-back Or Reduce down aisle width Pro: Minimal cost Con: Visibility/Reaching Parts Flexibility with layout is constrained by single sided access

19. Layout: Modular Shelving Units Could be arranged in multiple configurations. Pro: Accessible from all sides Easy to relocate Fits in tight, non-traditional spaces Reduce down aisle width Con: Stability Risk 5S: Sustaining organization B&OS Pit

20. Layout: Modular Shelving Units Could be arranged in multiple ways. Pro: Accessible from all sides Easy to relocate Fits in tight, non-traditional spaces Reduce down aisle width Con: Stability Risk 5S: Sustaining organization

21. Layout: Modular Design Larger Foot-print Possibly more centrally located Pros: High Parts Density CAD model shows≈108 plates per shelf (6 in. Diameter) Vertically Stored 5S: Missing parts are easily identified Cons: More parts = Greater Load Rating Non-mobility Higher Cost (Although Fewer Racks would be needed)

22. Layout: Modular Design Tighter Footprint Pros: High Parts Density Similar in total storage Density to Vegetable Rack 5S: Missing parts are easily identified Shelving bins: size ranges- ascending Less Leverage on Shelves Possible adjustable shelf height Cons: Accommodating Variable Part Sizes

24. Two Possible Goals: Make the floor look neat and organized Queuing lanes, Signage, 5S and/or Implement self managed Inventory Flow Reduce searching times Reduce meetings No communication necessary

25. What does management want to know about a part on the floor? Where is that part going next? Where is the part in the process? What machines can a part be run on? Is the part late or on time? When is the part due? Establish priority rules based on the parts status Operator’s Perspective What part am I doing next? What am I running today? tomorrow? How long of a queue exists at a machine? Establish specific queuing locations for a machine

26. Detailed design review in 4 weeks Heat Treat Integrate design into new layout Procurement Procedures for Dresser-Rand B & OS Design Requirements for Dresser-Rand Full Implementation Plan Lean (MSDII) Initiate Information gathering now Possibly multiple Kaizen events next quarter