1. Operations Improvement Performance Measurement

2. Why Performance Measurement? “When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates” (Thomas S. Monson). Data based performance measurement aids communication of what’s important to the business, focusing efforts & producing results more quickly.

3. Labor and Machine Standards Identify Processes Identify Cost Drivers Set-Ups Item Type Lines of Text # Locations etc Identify Driver Costs Labor per Order Labor per Unit Machine Time Material Usage Structure Orders to link to Cost Drivers Complete sales orders properly Logistics Behavior Business Operations Labor Planning Machine Capacity Planning Transparency for Reward/Accountability Increased Labor Sharing Fosters “Namify-Pace” Identify and Measure Process Improvement Account for Costs Data to Guide Decisions Margin Analysis Dynamic Pricing Automated real-time costing Product Portfolio Management Labor and Machine Standards System How MadeHow Used

4. Key Drivers by Area Safety Safe Behaviors Personal Protection Equipment Preparation Lead and Hourly Incentives Quality Standardized Procedures Specifications and verification Performance Indicators KPIs linked to Lead and Hourly Incentives Labor Usage AutomationProcess DesignProduct DesignLabor Standards Labor Utilization “Cash Crops” Flexible Assignments Labor Utilization KPI Lead and Hourly Incentives Capacity Utilization Nominal Rate Utilization During Shift Extending Machine Hours Transparent Real-time Capacity Info

5. Seven Pillars of Namify ® Operations I. Safety: We work safely. We each have responsibility for personal safety and safe work behaviors. We also ensure company assets are protected. II. Quality : We fulfill client needs with accurate, consistent, and appealing products. We confirm quality before preceding. III. Service: We pride ourselves in same-day service, delighting our internal and external customers and exceeding personal expectations. IV. Order, Function, and Efficiency : Everything has its place and is maintained fully functional. Simplify and systemize process flows to reduce complexity and improve productivity. Transparent process drives efficiency. Back/Next principle: If ready, then process. If not, send back. We respect the process and do not short-cut; approving changes before implementing. V. Accountability: Each is 100% responsible and accountable for results. VI. Teamwork: The power of "we” is greater than the power of "me”. We find the way. VII. Communication: Use system tools to process orders and send professional emails when appropriate. We listen and have open frank dialogue in weekly meetings. Make clear commitments and keep them.

6. Why Process Documentation? 1. Communication/Improvement 1. All can be on same page 2. Quality: standard for consistent execution 3. Analysis 2. Scale: Enables growth 3. Knowledge Management

7. Current Performance Indicators Corrected Orders On-Time Shipping Waste Tracking Overtime New Performance Indicator Labor Efficiency Definition: Task Completed X Standard Hrs / Hrs Worked* *Salary = 8 hrs worked

8. Why Labor Standards and Labor Efficiency? Labor Standards Used as reference to Marketing set pricing. Guides labor and machine planning (how long will it take to finish this order?) Measure labor performance. Labor Efficiency performance indicator will help give feedback. Individual How am I doing? One number will say a lot Line Leader Credit/recognition for their results. Tool for performance feedback. Management How well are we using our overall labor? Part of overall performance feedback. Results will be part of qualification for employment and pay raises. Incentive to quickly finish up base orders then work on stock assembly required or go home.

9. How to use it on the line Review daily report showing daily and week-to-date productivity by person and by line. Make note of trends and address as appropriate. Meet officially with each person weekly and give general feedback. Purpose is not to dwell on the numbers or distract. Send them home or go to Assembly Required to work on stock items such as 5/8” Lanyards and Badge Holders.

10. Report Discussion Points Lead Vacation: hrs still count against performance Substitute on “auto” line doesn’t get “credit hrs” from line. Labor standard calculations: Observed vs Expectation Based # of lines doesn’t determine machine time: FC not at all Laser: # of lines, size of lines, presence and size of logo Tracking and accountability Corrected Orders Validation of self reported data Need to add lbr and machine hrs to Lanyard/Textile Press, Banners, Embroidery to automate labor and processing time feedback.