1. October 15, 2012 Jose Chavez Jr, Quality & Technical Services Engineer

2. About MPC Industries  Flat sheet polishing  Formed Parts polishing  Grinding, Sheet & Plate Backed by over 50 years experience and unique combination of resources. Time proven competitive advantages, 50,000 Sq. Ft. facility in Irvine, California Strategic partner in support of customer strategic and supply chain goals.

3. Flat Sheet Polishing Formed Parts Sheet/Plate Grinding

5. The purpose of the Kaizen Process is to accelerate and create breakthroughs in work-area process performance. 5 3.1.1 Kaizen Process – How does your organization set and review priorities for Kaizen events? How is recognition for team members provided and who is involved? How are lessons learned shared with others who can benefit? How are process improvements documented and deployed to others using the same or similar processes? How are internal Kaizen leaders developed and deployed? How are goals set for Kaizen leadership and how is progress monitored? Setup Preparation Event Post Event KAIZEN PROCESS Project Charter Kaizen Leader collects (CS) data from work area related to upcoming Kaizen event Kaizen Leader confirms objectives with Process Owner and Champion Resources are approved by Champion Kaizen event schedule is set with specific daily action plans Value Stream Maps Upper Management Report Out Annual Improvement Plan Kaizen Team Leader Kaizen Objectives set and linked to Annual Improvement Plan (Measures that Matter) Conduct training (VSM, 7 Waste, Lean, PDCA Process) Look & See Assign action plans Pilot run if applicable Create new standard work and training Prepare report out Present results Manage event follow-up (30-60-90 Day) PPT report Feedback Collect feedback and improve process Kaizen Project Closure Report Out Areas Addressed

6. “What gets measured, gets done”  The highest Quality (Measured by Customer)  The shortest Lead-Time (Measured in Hours)  The lowest Cost (Measured in Profit)

7.  Driving Forces  Strategic Plan  Departmental Goals  Measures that Matter ( SEA Measures)  Departmental Business Plans  KAIZENS  Team Leader  Teamwork  Output

8.  Allocates Resources  Sets Milestones, Planned Achievements

9.  Cross Functional Team  Process Owners  Departmental Managers  Volunteers  Kaizen Facilitator  Outsider

10. 1. Review VSM already completed Ask the Key Questions 2. Review notes from process walk while developing current state map 3. Review Spaghetti Diagram & Brainstorm issues 4. Review 5 Whys & 7 Wastes 5. Identify opportunities to create flow 6. Prioritize opportunities 7. Apply Lightning Bursts to Map to highlight specific improvement ideas 10

12.  Improve  Measures that Matter  Identify & Reduce the 7 Wastes  Non Value Added Activity  Realize the Annual Improvement Plan

14.  Contribution  Kaizen Team Members  Employees  Managers  Prioritized  Impact & Potential Saving/ Gains  Area Affected  Facilitates Commitment  R&R

15.  Review & Feedback  Identify even further Improvement Opportunities  Closes out the PDCA

16. Accountable, Determined, Innovative, Customer Focused, Positive Thinking, Smart, Willing to Communicate, Deals Well with Stress, Works at fast pace, English Communication Skills, Computer Skills, Leadership Experience.  Responsible for Department Dashboard Measures (MTM)  6S Audit Scores  Manpower  Implementing Kaizens  Meeting Departmental Goals Process Owner Assessment Criteria

17.  Our Process Owners monitor/improve measures that have true value ▪ Sq. Ft. polished per hour (we want to continue trend up) ▪ Labor hours per 100 Sq. Ft. (we want to continue trend down)

18. Standardized work time for each individual part  Targets for qualifying/ prequalifying operators  Reducing output variation and overtime  Rearranging Workflow for one piece flow  Work Items at Point of Use

19.  Measures That Matter  Cubic inches removed per hour  Daily tracking of Change Over Time

20.  Improvement Opportunities are everywhere  Involvement Builds Commitment  Kaizens are more effective driven from the ground up, & supported by management  Don’t disregard even the smallest improvement; there is value.  Not all Kaizen’s have to be documented.

21. ISO 9001 and AS9100 Certification “The pursuit of world class management procedures and business practices” “The pursuit of the Highest Quality, Lowest cost and Shortest Lead-Time” Lean Enterprise System & Continuous Improvement