1. Morning Sun OP506 Morning Sun Screen Printing Company Presented by: George Holk James Gemperle & Kim Dubois

2. Morning Sun OP506 Company Overview u Founded in 1986 u 425 Employees, $52M Annual Sales u Product: Custom Screen Printed T-Shirts u Market: Primarily Department Stores, and Some Smaller Retailers u Batch Process, Make to Order

3. Morning Sun OP506 Competitive Priorities u High Quality u Flexibility u Speed of Delivery

4. Morning Sun OP506 Plant Layout and Work Flow (Approximately 150,000 Square Feet) Warehouse Screen Prep Art Shipping Sewing Offices Embroidery Printing

5. Morning Sun OP506 Plant Operations & Methods of Supporting the Competitive Priorities of: Quality, Plant Operations & Methods of Supporting the Competitive Priorities of: Quality, Flexibility and Speed

6. Morning Sun OP506 Raw Materials Inventory u JIT System u Strong Supplier Relationships u Quality Inspections Performed u Orders Stacked by Design and Size Scale

7. Morning Sun OP506 Art and Screen Preparation u Designs by In-House Art Department - 200 In Stock Designs (Down from 500) u Frames and Screens are Constructed u Design Image “Positive” is Burned onto Screen

8. Morning Sun OP506 Competitive Priorities  Quality -Supplier Relationships -Raw Material Inspection -Design Engineering  Speed, Flexibility -Reducing Inventories (JIT) -Fewer Designs

9. Morning Sun OP506 Screen Printing u Two Types of Screen Press Machines Used -Hand Press -Auto Press u Dryer Oven Belt u Shirts Inspected for Quality u Foiling, Embroidery u To Sewing for Final Work

10. Morning Sun OP506 Screen Printing CP Support  Quality -Quality Inspections, Run Set-Up Testing and Fail Safing  Delivery Speed -Reduction of Set Up Times -Combining Processes -New Embroidery Machines  Flexibility “Mass Customization” -All Machinery on Wheels -Hand Presses for Special Orders

11. Morning Sun OP506 Sewing u Labels and Collars -Formerly Outsourced u Capacity -20 Machines /3 Shifts u Bottleneck

12. Morning Sun OP506 Sewing (cont.) u Identified as “Herbie” u How to Move Herbie Upstream -Collars -Smaller Batches -QC Runners

13. Morning Sun OP506 Sewing cont. u Other Changes Made: -Pay for Performance -Purchase of 10 New Machines -Limit Order to Size Scale

14. Morning Sun OP506 Sewing- Competive Priorities  Quality -QC Runners  Speed and Flexibility -Additional Machines -Improved Throughput

15. Morning Sun OP506 Summary - Operations Support of Competitive Priorities u Quality -Inspections, QA Dept. u Flexibility -Mobile Production Equipment -Order Size Variance u Speed -JIT, Moving /Combining Processes