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Scenes from the Platinum Source Preferred and Supplier of the Year Conference & Awards Northrop Grumman Aerospace Systems Honors 72 Top Suppliers on May.

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Presentation on theme: "Scenes from the Platinum Source Preferred and Supplier of the Year Conference & Awards Northrop Grumman Aerospace Systems Honors 72 Top Suppliers on May."— Presentation transcript:

1 Scenes from the Platinum Source Preferred and Supplier of the Year Conference & Awards Northrop Grumman Aerospace Systems Honors 72 Top Suppliers on May 2, 2012 in Manhattan Beach, Calif.

2 RECOGNIZING 72 SUPPLIERS for attaining distinction in product quality, on-time delivery, customer satisfaction and robust lean processes

3 “Building honest, lasting relationships with you, our suppliers, has always been a key part of who we are … We rely on you to be an active part of building and developing our products and overseeing the work of your supply chain.” — “Emcee” Wink Williams, Director, GSC’s Goods Movement, welcoming suppliers at the Aerospace Systems Supplier Conference and Awards on May 2, 2012 3 Enduring partnerships rely on honesty and trust. Non proprietary; Unclassified

4 “We need your help to achieve cost and affordability targets, meet commitments and develop robust congressional relationships. Together, we must perform and drive down costs so we can keep the work.” — Chuck Wands, Sector Vice President, Business Management, and Chief Financial Officer, Northrop Grumman Aerospace Systems 4 Together we must perform and drive down costs.

5 5 Aggressively act to mitigate performance challenges. “The programs you support are just amazing. I want to offer my personal congratulations for your accomplishments. You have provided quality products on time, on cost, and in today’s environment, that’s no small feat. I also want to thank many of you for your approaches to affordability. … We’re relying on you to aggressively act upon and mitigate performance challenges.” — Lisa Kohl, Sector Vice President, Global Supply Chain

6 “How do we survive in this difficult fiscal environment? Despite fewer new starts, opportunities remain to expand work. We need to work together to translate program successes into program support. When we reach a significant program milestone, we need to make sure our customers and stakeholders know about it. We can also help customers by better understanding their mission needs and adapting our solutions to address them. And above all, we must execute on cost and on schedule.” — Dave Zabalaoui, Director, Business Development, Space Systems, Northrop Grumman Aerospace Systems 6 Educate customers; Share program successes.

7 “We foster business connections. Bring us in early, during the proposal stage, to help you find qualified small businesses, especially in historically underutilized business zones and with service-disabled veterans. Those relationships are crucial.” -- Vicky Harper-Hall, Manager, Socio-Economic Business Programs, Northrop Grumman Aerospace Systems 7 Bring us in early to help find qualified small businesses.

8 8 Goal is a secure, compliant and useful supplier portal. “Thanks to your help, we now have the most secure supplier portal in the industry. Security upgrades over the past two years have resulted in a state- of-the-art portal, compliant with both our customer’s export compliance and digital identity requirements. Your digital identity, like a passport, allows us to securely exchange contracts and technical data with quality and speed.” — Dean Westcott, Director, Business Systems Integration, Global Supply Chain, Northrop Grumman Aerospace Systems

9 “Counterfeit parts are threatening the welfare of our warfighters. Our tiered prevention strategy involves awareness training, timely reporting, and on-site audits of Counterfeit Electronic Parts Control Plans. We’re maximizing procurements from OCMs and OEMs — and minimizing the use of independent distributors to reduce counterfeit vulnerability. We expect you to help us identify, report, control and dispose of suspected counterfeit parts.” — Michael Gross, Vice President, Subcontracts, Global Supply Chain, Northrop Grumman Aerospace Systems 9 To prevent counterfeit parts, we trust, but verify.

10 Panel Reviews Current Acquisition Environment Moderator Corey Moore, VP, Programs, GSC: “As we shoulder proposal costs on new and follow-on opportunities, there will be fewer discretionary dollars available for investments … These program leaders will describe how you can sharpen our competitive edge.” Dave Mazur, VP, IPT Leader, B-2 Program: “Sixty to seventy percent of my business is with suppliers. I need your help to execute affordably and ahead of schedule.” Janis Pamijans, Vice President and General Manager, Unmanned Systems: “Your effort, energy and productivity allow us to mature our technologies. We’re in this together for the long journey.” 10 From left, NGAS VPs and program leaders serving on panel: Carl Johnson, Scott Willoughby, Janis Pamijans, Dave Mazur and moderator Corey Moore. Competitive edge: technical merits, affordability – and no surprises! Scott Willoughby, Vice President & Program Manager, James Web Space Telescope: “Being big is being vulnerable. We can only survive based upon our technical merits.” Carl Johnson, VP & Program Manager, UCAS-D/UCLASS, Advanced Programs & Technology: “To me, affordability is performance, getting it right the first time.”

11 Voice of the Customer “As a warfighter and taxpayer, I am indebted to you. I see here a cross-section of our industrial base as well as many supply chain experts. … Among the points I want to drive home is the unintended consequence of counterfeit parts. I’m sensitive to the prejudice suppliers often have of us as black hats who can issue CARs and stop payments. But I want you to know — we are here to help you find and prevent counterfeit parts. We know it’s tough to flow this message down to third and fourth-tier suppliers. But you must; Altered material is a big deal. … I’ve offered examples today of how failed gaskets and hardware assemblies have flamed out engines and caused the loss of ground test investments. Thankfully, there was no loss of life. However, our young men and women, our sons and daughters, don’t want to use a weapon that doesn’t work. … Take these stories back to your people. Have the right prevention processes in place. Be honest. Our warfighters’ lives hang in the balance.” — Col. Glenn L. Graham, USAF, Commander, DCMA Palmdale 11 Warfighters’ lives depend on your honesty and proactive prevention.

12 Awards Presentation “Today we are recognizing 68 companies that have achieved elite platinum preferred status. Sixty-one of you are returning, and seven are here for the first time. As essential partners and members of our supply team, you are creating in your companies a culture committed to continuously improving quality and consistently meeting requirements. Thank you for your excellent performance.” — Joe Jackson, Director, Supplier Quality, Global Supply Chain, Northrop Grumman Aerospace Systems 12 Commit to continuous improvement and consistent performance.

13 68 Suppliers Earn Recognition as Platinum Source Preferred Awardees Of the 68 awardees, seven are new, having qualified based on their 2011 performance. New honorees are: Acromil Corporation City of Industry, Calif. Albany Engineered Composites Rochester, New Hampshire D-J Engineering, Inc. Augusta, Kansas GKN Aerospace Hazelwood, Missouri Icore International Santa Rosa, Calif. L-3 Communications Narda Microwave-East Hauppauge, New York Parker Hannifin Corp. Composite Sealing Systems Division San Diego, Calif. 13 Col. Graham (back row, 2 nd from right) and NGAS leaders are pictured with all Platinum Source Preferred awardees in attendance at the May 2, 2012 program.

14 Platinum Source Preferred Awardees (2 Years – 4 Years) 2 Years C&D Zodiac, Advanced Composites Division – Marysville, Calif. Castle Metals Aerospace – Gardena, Calif. Century Precision Engineering – Gardena, Calif. CMC Electronics – Saint-Laurent, Quebec Consolidated Precision Products – Port Hueneme, Calif. L-3 Communications, Narda Microwave-East – Hauppauge, N.Y. Lamsco West, Inc. – Santa Clarita, Calif. Precision Coil Spring Company – El Monte, Calif. Precision Shapes, Inc. – Titusville, Fla. RBC Transport Dynamics Corp. – Santa Ana, Calif. Roc-Aire Corp. – Pomona, Calif. UMPCO, Inc. – Garden Grove, Calif. Valley Seal Company – Woodland Hills, Calif. 14 Essential Partners: Called out individually at the ceremony, the Platinum Source Preferred awardees were recognized by the number of years they’d operated at this level. 3 Years AMI Metals, Inc. – Fontana, Calif. Ashley Machine and Tool Co. – W. Wyoming, Penn. Ball Aerospace & Technologies Corp. – Westminster, Colorado Carlisle Interconnect Technologies – Saint Augustine, Fla. Cobham Antenna Systems, Microwave Components – Exeter, New Hampshire Cytec Engineered Materials – Havre de Grace, Maryland Dayton-Granger, Inc. – Fort Lauderdale, Fla. Fatigue Technology, A PCC Company – Seattle, Washington Henkel Aerospace – Bay Point, Calif. Hughes Bros. Aircrafters, Inc. – South Gate, Calif. Kollsman, Inc. – Merrimack, New Hampshire Esterline Control Systems – Korry Electronics – Everett, Washington New Source Corporation – Oviedo, Fla. Saft America, Inc. – Valdosta, Georgia Sandvik Special Metals LLC – Kennewick, Washington Shultz Steel Co. – South Gate, Calif. Van Brakel Electronics, Inc. – Phoenix, Arizona 4 Years Allfast Fastening Systems, Inc. – City of Industry, Calif. Cytec Engineered Materials – Anaheim, Calif. Cytec Engineered Materials – Greenville, Texas Cytec Engineered Materials, D Aircraft Site – Anaheim, Calif. Integrated Polymer Industries, Inc. – Irvine, Calif. Johnson Supply Company – Pensacola, Fla. LAI International – Phoenix, Arizona New Hampshire Ball Bearings, Inc. – Laconia, New Hampshire The Advanced Composites Group, Inc. – Tulsa, Oklahoma TW Metals, Inc. – Los Angeles, Calif. W. S. Wilson Corporation – Port Washington, N.Y. List of Platinum Source Preferred award winners continues on next slide

15 Platinum Source Preferred Awardees (5 to 6 Years) 15 5 Years Alcoa Fastening Systems (Valley-Todeco, Inc.) – Sylmar, Calif. Eaton Aerospace – Glenolden, Penn. Eaton Aerospace - Conveyance Systems – Eastanollee, Georgia Long-Lok Fasteners – Carson, Calif. Monogram Aerospace Fasteners – Los Angeles, Calif. Peerless Aerospace Fastener Corp. – Farmingdale, N.Y. Valley Metals – Poway, Calif. 6 Years 3M Company – Springfield, Missouri Dixie Aerospace, LLC – Peachtree City, Georgia Eaton Aerospace – Grand Rapids, Michigan Flexfab LLC – Hastings, Michigan Haynes International Inc. – Arcadia, Louisiana Heartland Precision Fasteners – New Century, Kansas Innovent, Inc. – Peabody, Mass. L-3 Communications. Randtron Antenna Systems – Menlo Park, Calif. PPG Aerospace, PRC-DeSoto – Kennesaw, Georgia TIMET – Toronto, Ohio Voss Aerospace – Cleveland, Ohio

16 Platinum Source Preferred Awardees (7 Years) Of the 68 honored as Platinum Preferred suppliers, only two have operated at Northrop Grumman’s highest level for seven consecutive years. They are:. 16 Hurlen Corp. of Sante Fe, Calif. TEK Precision of Deer Park, N.Y. From left, John Krause, CEO of TEK Precision and Henry Pena, VP of Hurlen Corp. with Col Graham, VP Lisa Kohl and NGAS Supplier Quality Director Joe Jackson. Look for a special profile of Hurlen and TEK Precision to be posted on OASIS, coming soon!

17 Meet our Supplier of the Year (SOTY) Awardees The Supplier of the Year program is an outgrowth of the company's strategic sourcing initiative, an effort started during the summer of 2003 to build stronger long-term relationships with suppliers. Under this initiative, suppliers are "graded" quarterly on parameters such as quality, on-time delivery, lean principles and participation in affordability initiatives. While many suppliers ARE qualified, this program honors the best of a group of superior performers who have demonstrated consistent quality, superior performance and exceptional customer service in delivering products, services and value to Northrop Grumman Aerospace Systems. This recognition is divided into six categories: 17 Supplier of the Year awardees pose as a group with Col. Graham, VP Lisa Kohl and other NGAS leaders. 1.Special Recognition – this category acknowledges a supplier who makes a significant contribution to our success by performing beyond the contractual requirements to ensure our expectations were met or exceeded. 2.Non-Production – defined as products or services that are not end item deliverables to our customer 3.Research & Development 4.Subcontracts 5.Small Business 6.Procurement

18 Supplier of the Year -- Special Recognition 18 L-3 Communications, Link Simulations & Training – Arlington, Texas L-3 Link-Simulation & Training was honored for its stellar performance in executing Mission and Flight Crew Training in support of the E-8C Joint STARS TSSR program out of Robins AFB. L-3’s flexibility and unmatched training proficiency over an unbroken eleven quarter period exemplifies its attention to performance and customer satisfaction. During this period L3 Link completed more than 71,300 hours of combined Mission/Flight Crew instruction, totaling 335 students, with 100% graduation proficiency. (Description approved through PROCS #12-0445) From left: Col. Glenn Graham; Dan Kelly, VP of Air Force Programs for L-3 Com Link Simulation & Training; Todd Jones, L-3 Com Narda Microwave Program Development Manager; and VP Lisa Kohl.

19 Supplier of the Year – Non-Production Kellstrom Industries – Macon, Ga. Kellstrom was honored for its exceptional support of the Joint STARS Total System Support Requirement (TSSR) program. Kellstrom employees successfully completed the warehouse transition of more than150,000 parts, requiring more than125 flat bed truck loads on a very condensed time frame. They also set up a complete GOLD (Government On-Line Data) system to facilitate storage, inventory, shipping and handling of more than $400 million of Government-owned Material. This warehouse transition was accomplished two (2) full weeks ahead of schedule. without interruption and greatly contributed to the on- going Joint STARS TSSR program success. (Description approved through PROCS #12-0444) 19 From left: To Come… XXX of Kellstrom is congratulated by Chris Hayes, NGAS Director of Procurement; Vicky Harper-Hall, SEBP Manager; Col. Graham; VP Lisa Kohl; and VP Michael Gross.

20 Supplier of the Year – Research & Development Garmin International – Olathe, Kansas Garmin International was honored for its unwavering commitment in delivering commercially based aircraft avionics and glass cockpit technology into an Advanced Programs and Technology product area. Garmin worked tirelessly to achieve a balance between commercial products and military requirements, providing prototype equipment for early Systems Integration, significantly reducing product risk. This resulted in a cost-effective solution that enabled Northrop Grumman to offer great value to its customers. (Description approved through PROCS #12-0443 ) 20 From left: Procurement Director Chris Hayes, SEBP Manager Vicky Harper-Hall; XXX XXX To Come from Garmin; Col. Glenn Graham; VP Lisa Kohl and VP Michael Gross.

21 Supplier of the Year -- Subcontracts Ball Aerospace & Technologies Corp. – Westminster, Colorado Ball Aerospace & Technologies Corporation was honored for its outstanding dedication, service and commitment on the EA-18G Growler and E-2D Advance HawkEye Programs. For example, on the EA-18G program, Ball consistently delivered the Mobile Airborne Tactical Terminal (MATT) Antenna EARLY for four consecutive years with zero quality defects. (Description approved through PROCS #12-0446) 21 From left: Col. Glenn Graham, USAF; Kim Ruger, Ball Program Manager; Jim Oschmann, Ball VP & GM; Lois Loche, Ball Quality Manager; Tom Metzler Ball Director, Advanced Systems; GSC’s Robert Cannavale; Paula Burns, Ball Director, Production Programs; Lisa Kohl, VP, NGAS Global Supply Chain; and Michael Gross, NGAS VP, Subcontracts.

22 Supplier of the Year – Small Business Shultz Steel Company – South Gate, Calif. A Northrop Grumman supplier for more than 28 years, Shultz Steel Co. provides open die forgings in support of our F/A-18 and E-2 programs — and it’s one of only three “Center of Excellence” suppliers for the Castings & Forgings commodity within Procurement. Time and again Shultz has accelerated its manufacturing lead- time to process forgings in support of very challenging program schedule changes imposed by NGC due to supplier performance failure elsewhere. Schultz employees have a relentless customer focus to satisfy every functional level, and they are very responsive to every feasible inquiry. (Description approved through PROCS #12-0448) 22 From left: VP Michael Gross; SEBP Manager Vicky Harper-Hall; VP Corey Moore; Col. Graham; Shultz Quality Manager Stephen Goode; Shultz VP Chris Chance; VP Lisa Kohl; and Procurement Director Chris Hayes.

23 Supplier of the Year - Procurement Composites Atlantic Limited - Lunenberg, Nova Scotia Composites Atlantic, Limited., or CAL, is located in Lunenberg, Nova Scotia, where we’ve heard on good authority a local restaurant serves the world’s best lobster mashed potatoes! CAL provides parts in support of the E2 and F-35 programs. CAL proposed an affordability initiative to move the delivery date of tooling to a later date that better support the F-35 program. This date change resulted in cost savings to Northrop Grumman. CAL also passed its F- 35 IPRR with outstanding assessments from the evaluation team. (Description approved through PROCS #12-0447) 23 From left: VP Michael Gross; SEBP Manager Vicky Harper-Hall; VP Corey Moore; Col. Graham; CAL Senior Program Manager David Mitchell; CAL President & CEO Claude Baril; VP Lisa Kohl; and NGAS Procurement Director Chris Hayes.

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