This document discusses strategically changing manufacturing to support better technology and results. It covers several topics: - The future of manufacturing will require progressive changes in technology, culture, and capabilities to adapt to changing markets. - Different industry sectors like healthcare, aerospace, and energy face different technology cycles and economic drivers that will impact production. - Elements like fixturing, processes, applications, tools, and skills will need strategic transitions to adapt to new technologies. - Metrics and control systems are used to track manufacturing performance, quality, safety, costs, and drive continuous improvement over time.

1. STRATEGICALLY CHANGING TO SUPPORT
Better Thinking
+
Better Technology
=
BETTER RESULTS
THE FUTURE OF MANUFACTURING
• Technology
• Best Part of Lean
• Economical Structured Market
• Time to Market (Days vs. Weeks)
TECHNOLOGY
TECHNOLOGY

2. Future of Manufacturing
Progressive with Overlapping & Divergent Paths
Technology
Culture
CAPABLITY FOCUS
Best Part of Lean
Economical Structured Market
Market Variables
2

3. REASON FOR CHANGE
HEALTH CARE SECTOR
MEDICAL DEVICE Evolution
2-3 year cycles with possible
Complete transformation
Economical & Social Drivers
Market Pricing
INDUSTRIAL SECTOR
AEROSPACE & DEFENSE PRODUCTION
7-10 year cycle remaining with
possible continuous transformation &
shorter technology cycles. Likely
super downturn to follow this super
upturn
GLOBAL COMPETITION &
OFFSETS & SUPPLIER RQMTS
US Defense Budget sequestration
ENERGY
OIL DRILLING EQUIPMENT
Evolution. 10-12 year cycles
with possible transformation in
50% of applications
Social & Enviro driving
Alternative energy

5. STRATEGIC ELEMENTS & TRANSITIONS
FIXTURING TECHNOLOGY
PROCESSES
APPLICATIONS
& DME -TOOLS
PROFESSIONAL
SKILLS
FPY – OEE-
UTILIZATION
-ALL TOOLS
ENGINEERING
PROCESS MGMT
FINANCIAL MGMT
CORE

6. SPECIFICALLY HOW THIS HAS
BECOME OUR NORM

7. 2012-15 Path - Drive a Focused & Continuous Improvement Culture
Demonstrated OS tool
proficiency drives
improvement
Improve
Processes
Develop
Strategy
Track
Results
Monitor Progress
Establish
Vision
Prioritize
Opportunities
Voice of the Customer (VOC)
Key Input to the
Operating System (OS)
Define Metrics
Create RoadmapCreate Roadmap
Communicate
Goals &
Objectives
Qualifying
Learning Coaching,
Teaching &
Baselining
Using the tools; getting results
and
Building foundations
Bronze
Silver
Gold
Significantly improving
business metrics
Year-over-year
business metrics
improvements
Qualifying
Learning Coaching,
Teaching &
Baselining
Using the tools; getting results
and
Building foundations
Bronze
Silver
Gold
Significantly improving
business metrics
Year-over-year
business metrics
improvements
Achievement Levels for
Cells/Sites/Programs
Guide to Next Level
VOS Qualifying Level
0
1
3
1
1
21
1
1
2
1
1
2
00
1
2
3
4
5
VOC - Voice of the Cus t omer Surve y
FO D Co mplia nc e
MOS Imp leme ntat io n
V OS Ac ademy Tra ining
5S
V is ual F a cto ry
VS M Curre nt/ Fut ure
QCPC Imp le me nt a tion
Skills Training Mat rix
RC CA Training
S t anda rd Wo rkImp lement ation
TPM - Tot al Product ive Maint e nance
Prog ram
D emand Pull S ys tem
Emp loyee Develo p me nt
Identify Business
Opportunities
Identify Business
Opportunities
Drive
Execution
KMI
Ops Measures
Financial Measures
Trend Data
Crew Plan / JDS Wkly
Summary/Review
Drive product focus
Day to Day
Task
Lean
Model
G/O
Milestone
2007 Vought Site Control Tower
Achieved Goal Yellow-Within 10% Red- Missed Target > 10% Not Applicable
Metrics
Target/Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act
July'07 1 1 100% 0% 100% 100% $3.86 $2.46 11 9 90% 80.0% 90% 55.9% 100% 100% 298 279 208 207 10.0% 21.8% 5.0% 8.8% 50.8% 50% 5.4 7.78 $17.5 $19.664
Aug '07 1 1 100% 100% 100% 100% $3.86 $6.34 11 11 90% 76.7% 90% 51.7% 100% 100% 298 278 208 208 10.0% 20.6% 5.0% 9.3% 50.8% 49% 5.4 7.25 $17.5 $21.109
Sept '07 1 1 100% 67% 100% 100% $3.86 $5.24 11 9 90% 73.7% 90% 46.5% 100% 100% 298 276 208 212 10.0% 27.4% 5.0% 11.0% 50.8% 53% 5.4 6.89 $17.5 $22.211
Oct-7 1 0 100% 100% $3.86 $2.67 11 8 90% 72.6% 90% 45.7% 100% 100% 298 277 208 217 10.0% 27.7% 5.0% 11.8% 50.8% 52% 5.4 N/A $17.5 $20.145
Oct-14 1 1 100% 0% 100% 100% $3.86 $2.62 11 7 90% 79.3% 90% 42.3% 100% 94.7% 298 292 208 220 10.0% 29.1% 5.0% 11.6% 50.8% 50% 5.4 N/A $17.5 $21.630
Oct-21 1 0 100% 100% $3.86 $3.24 11 10 90% 77.0% 90% 50.2% 100% 87.0% 298 297 208 227 10.0% 25.4% 5.0% 9.9% 50.8% 48% 5.4 N/A $17.5 $22.248
Oct-28 1 0 100% 100% $3.86 $3.47 11 9 90% 81.7% 90% 52.1% 100% 100% 298 297 208 235 10.0% 24.7% 5.0% 12.3% 50.8% 50% 5.4 N/A $17.5 $22.712
% onTime
CA
R3
($/Stdhr)
Tot. Inventory
(M)% Direct OT % Indirect OT
%
Productivity
Non-Touch
Headcount
(Indirect)
Cost Working CapitalSchedule
Inventory
TurnsFOB onTime
MTDDefects
/1000stdhrs
Starts on
Time
Completes on
Time
Touch
Headcount
(Direct)
OSHA
Recordables
Timeliness
Reporting
Safety Quality
2007 Vought Site Control Tower
Achieved Goal Yellow-Within 10% Red- Missed Target > 10% Not Applicable
Metrics
Target/Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act Tar Act
July'07 1 1 100% 0% 100% 100% $3.86 $2.46 11 9 90% 80.0% 90% 55.9% 100% 100% 298 279 208 207 10.0% 21.8% 5.0% 8.8% 50.8% 50% 5.4 7.78 $17.5 $19.664
Aug '07 1 1 100% 100% 100% 100% $3.86 $6.34 11 11 90% 76.7% 90% 51.7% 100% 100% 298 278 208 208 10.0% 20.6% 5.0% 9.3% 50.8% 49% 5.4 7.25 $17.5 $21.109
Sept '07 1 1 100% 67% 100% 100% $3.86 $5.24 11 9 90% 73.7% 90% 46.5% 100% 100% 298 276 208 212 10.0% 27.4% 5.0% 11.0% 50.8% 53% 5.4 6.89 $17.5 $22.211
Oct-7 1 0 100% 100% $3.86 $2.67 11 8 90% 72.6% 90% 45.7% 100% 100% 298 277 208 217 10.0% 27.7% 5.0% 11.8% 50.8% 52% 5.4 N/A $17.5 $20.145
Oct-14 1 1 100% 0% 100% 100% $3.86 $2.62 11 7 90% 79.3% 90% 42.3% 100% 94.7% 298 292 208 220 10.0% 29.1% 5.0% 11.6% 50.8% 50% 5.4 N/A $17.5 $21.630
Oct-21 1 0 100% 100% $3.86 $3.24 11 10 90% 77.0% 90% 50.2% 100% 87.0% 298 297 208 227 10.0% 25.4% 5.0% 9.9% 50.8% 48% 5.4 N/A $17.5 $22.248
Oct-28 1 0 100% 100% $3.86 $3.47 11 9 90% 81.7% 90% 52.1% 100% 100% 298 297 208 235 10.0% 24.7% 5.0% 12.3% 50.8% 50% 5.4 N/A $17.5 $22.712
% onTime
CA
R3
($/Stdhr)
Tot. Inventory
(M)% Direct OT % Indirect OT
%
Productivity
Non-Touch
Headcount
(Indirect)
Cost Working CapitalSchedule
Inventory
TurnsFOB onTime
MTDDefects
/1000stdhrs
Starts on
Time
Completes on
Time
Touch
Headcount
(Direct)
OSHA
Recordables
Timeliness
Reporting
Safety Quality
STRATEGICASSESSMENT
& FOCUS
OBJECTIVES TIED
TO STRATEGIES
EMBEDDEDACTION ITEMS
ALL THINGSLINKED
KEEPING TRACK
OF PROGRESS
INCENTIVE
Assess &
Understand
Develop
Preliminary
Business Plan
•Performance
Assessment
Vision
2013
$9million-capable 35%
EBITDA
Identify
Objectives
•Market
Opportunity
•Product
Develop
Strategies
•Market Forecast
&Focus
•Product
Develop
Resource Plan
•Labor
•Expense
•Capital
Establish
Performanc
e Measures
Deploy
Plans
• Short Term
Determine
Priorities
Assess Plan Effectiveness
November 12
March
Timeline
Technical Partnership

8. 2014-2015 Vision & Direction
CONSIDERATIONS & KEY POINTS
•MARKET STRATEGY-MUST DEFINE SPECIFICS IN EACH SECTOR AS TO POTENTIAL CUSTOMER & SALES VALUE
•TRUE VALUE OF COMPANY IN INDUSTRIAL MARKET PLACE- 3X,4X OR 5X
•SWOT-REASSESSMENT NEEDED TO ASSURE ORGANIZATION & CULTURE IS SUPPORTIVE OF “FACTORY OF
FUTURE’ AND SUSTAINABLE
•FINANCIAL STRUCTURE-FUNDEMENTALS / RATIOS MUST BE IN LINE WITH COMPETITORS
•MANUFACTURING CAPABILITY & CAPACITY MUST EXHIBIT GROWTH POTENTIAL
FUTURE:FUTURE:
Customer
Contract
Level Load
(FINITE PLAN)
SupplierSupplier
Mthly Shipments
Of R/M
Level of
Inventory
Release/
Distribute
R/MR/M
Finished
Parts
Finished
Parts
Max---
Min---
Max---
Min---
Assy/
Ship
*Inventory Controlled using “Pull” System.
“Visual Control”
VISUAL
SYSTEMS
PARTNERING
3PL

9. VISION
LEAN CULTURE & COMMITMENT FOR TOTAL TRANSFORMATION
TURN KEY PROVIDER THAT DELIVERSINNOVATIVE / QUALITY / RELIABLE PRODUCT
SMALL COMPANY STRUCTURE WITH BIG BUSINESS CAPABILITY
ABILITY TO COMPETE
Great Complete
Solution
Good
Quality
Source
MARTON
Hire 5 people
Work like 10
People
Pay like 8 People
Core
Competency
Best
Passion
Economical
Driver
Disciplined People…Thoughts…Actions…
Repetitative Cycles-Question / Debate / Decision / Autopsy
Strong level of Comprehension
Predict-Question-Visualize-Sequence-Compare-Cause / Effect-
Summarize
=

10. Key Philosophy & Methodology
Group Facilitator
You’re empowered
Task Master
Here is what to do &
How…do it!
Builder of Learning
Organization
Here is our purpose
& direction
I will guide & coach
Bureaucratic Mgr
Follow the rules
General
Management
Expertise
In-Depth
Understanding
Of Work
Top-Down
Directives
Bottom-Up
Development
LEADERSHIP MODEL
Learning
Enterprise
Enabling Systems
Clear Expectations
Stable, Reliable Processes
Fair and Honorable Business Relations
Next Level Of
Improvement
Stabilility
•Map all elements together as a system
•Sense of accountability throughout Value Stream
•Coercive vs. Enabling
•Focus on the Manual Process, then automate
•Visual Control
People & Partners
Eliminate Process Waste
Philosophy-Long Term Thinking
Continuous
LEARN TO DEAL WITH DICS
Driving / Inspiring / Cautious / Steady people
•Driver
•Expressive
•Analytical
•Amiable
= Reserved & Slow
= Outgoing & Fast

11. IDEAL STATEMENT
•4 HABITS- ALWAYS KEEP END STATE IN MIND / PROACTIVE /
FIRST THINGS FIRST / UNDERSTAND, THEN BE UNDERSTOOD
•ABILITY TO COMPETE – 5 PEOPLE WORK LIKE 10, PAY LIKE 7
•STABLE & RELIABLE PROCESSES
•GOALS FOR ALL ELEMENTS OF COMPANY
•PARADIGM SHIFT UNDERSTOOD BY ALL –EVERYONE SEE’S NEED
•5 SEC LOOK TO UNDERSTAND ‘WHERE ARE WE”

12. Ideal State Vision
Future State Focus
Waste
Process
Model Focus
Business
Driver
Emp Subs
Emp Major
Assy
Prop Sub
Prop Major
Assy
EBU
Spare
Burning Platform
Affordability
Charter
Ideal
Statement
Key Elements/
Requirements
Go Fwd
MOS/Lean Score
G/O Milestones
Lean Milestone/Plan
Ideal State
Market competitor
Control Tower
VOS
Level
1
3
4
2
VOC Safety Quality Schdl Cost
SPF/Cell & People moving
(crew cycling) to support
demand +/-
•Affordability for ultimate customer
•Timing to redeploy workforce
•Balance workforce to market place
VISION BOARD
SIPO

13. 1. Defined Strategic Elements / Strategic plan to support Marton Vision &
Business Market
2. Structure organization to assure min overlap and complete ownership to
assure 99.9 value add operations.
3. Complete SWOT, finalize TOP FIVE that have the most impact on the
strategic direction and establish measures to track results of actions.
4. Establish Financial targets and budgets, then educate process owners on
their relationship to financials. (visibility for each key decision maker)
5. Engage employees in an aggressive “lean” focus to eliminate process
failures and to maximize the utilization of all employees with measured
processes.
13
Establish “End State” &
Get Understanding by Key Personnel

14. *Must Align to Strategic Business Plan
•Performance Mgmt
•Competitive Analysis
–Targeted Change
•Contracts Mgmt
•Capacity Plan
•Job
Performance
•Machine
•Assemble
ProcessDefinition
SupportSupport ExecuteExecute
Quality&Ops
Excellence
Quality&Ops
Excellence Operations
Mgmt
Operations
Mgmt
MfgMfgEXPECTATION ENABLE EXECUTE
Redesign
Im
prove
Im
prove
SetExpectation
Process Design
&
Execute
Performance
Tracking
•Formal Review
Performance
Tracking
•Formal Review
CPI Projects:
•LLI / NOV SPF
•Visibility Bds
•Klune Cell Flow
•Quality –FPY
•Ideal State Supt
CPI Projects:
•LLI / NOV SPF
•Visibility Bds
•Klune Cell Flow
•Quality –FPY
•Ideal State Supt
Capacity
Analysis
•3-6 mth plan
Capacity
Analysis
•3-6 mth plan
Skills
Assessmt.
• Hire Key
Position
Skills
Assessmt.
• Hire Key
Position
R/M Contracts
•LTA-JIT
R/M Contracts
•LTA-JIT
OP Suppliers
•JIT / pull
system plan
OP Suppliers
•JIT / pull
system plan
Shop Load
•Level load all
production cells
Shop Load
•Level load all
production cells
VMS
•Implement OEE
•Implement Job
Pack
VMS
•Implement OEE
•Implement Job
Pack
ASSY Ld &
Inv. Mgmt.
(Kanban)
ASSY Ld &
Inv. Mgmt.
(Kanban)
SMED
(set up
Reduction)
SMED
(set up
Reduction)
Current
Focus
1-2
months
Near
Term
Focus
(3-8
months)
TOP
OBJECTIVES
TOP FIVE OBJECTIVES / ACTIONS & RELATIONSHIP TO ORGANIZATION STRUCTURE
LEADERSHIP MODEL & ROLES
R & DMarket
Estimate & Quote
Procure
•R/M Buy
•OP / OM
Tool
Mgmt
•Prekit
Tool
Mgmt
•Prekit
Bench Marking
& Comparative
Analysis
Bench Marking
& Comparative
Analysis
Assure
Competitiveness
Assure
Competitiveness
Lean Structure with
a Quality Focus
Lean Structure with
a Quality Focus
Assure
Productivity
Assure
Productivity
Supply Chain
Alignment
Supply Chain
Alignment
Employee
Involvement
Employee
Involvement
Factory
Flow
•Ideal state
flow
Factory
Flow
•Ideal state
flow
Enhanced 5X
Capability
Enhanced 5X
Capability
•Inventory
•Maintenance
(Facility & Machine)
•Tool Mgmt
•Job Planning
•Schedule
•Customer Status
•Continuous
Improvement
•CRM
•QSM

15. MARTON END STATE 2015
HIGH & LOW VOLUME
BUT CONTINUOUS
HIGH VOLUME , HIGH MIX
BUT CONTINUOUS
SHORT RUN, HIGH MIX,
LOW VOLUME
PROCESS ENGINEERING GROUP
ALL CPI FOCUSED
TECHNICAL R&D GROUP
ADDITIVE MFG
THREE ENABLERS
FOR GROWTH & POSITIONING
1.SDWT-
2.TECHNICAL PARTNERS
3.TECHNOLOGY