toolingu.com.) Panel Discussion 2 toolingu.com Sturm Ruger - Mike Butler Pryer Machine and Tool - Cayla Brumble New Hampshire Ball Bearings - Donna Cadrette & Sheila O'Brien

toolingu.com.) Sturm, Ruger & Co., Inc. toolingu.com Tooling U User Group Discussion Las Vegas September 12, 2011

toolingu.com Sturm, Ruger & Co., Inc.  Sturm, Ruger, Co., Inc. – Made in America Manufacturer of Fine Quality Sporting Firearms  Mike Butler, SPHR, Director of Human Resources oResponsible for the Direction and Administration of all HR (Benefits, Compliance, Employee Relations, Organizational Development and HRIS) Environmental, Safety, Health & Security  Ruger Firearms- Locations oCorporate HQ- Southport, CT oManufacturing Locations- Newport, NH, 890 Associates, Revolvers & Long Guns oPrescott, AZ- 550 Associates, Auto Loading Pistols

toolingu.com Sturm, Ruger & Co., Inc.  Ruger Financial results, then and now o2006 oGross Sales 167MM oOperating Income- (280,000) oNet Income (after income tax)- break even o2010 oGross Sales MM oOperating Income- 43.4MM oNet Income (after income tax)- 28.2MM o2011 (first 6 months) oGross Sales MM oOperating Income- 29.5MM oNet income (after income tax)- 18.7MM

toolingu.com Sturm, Ruger & Co., Inc.  HOW’D WE DO THAT???????  2006 Operating Philosophy oManagement driven, large batch, push, piecework production system had created a culture where learning and associate engagement was not valued.  2007 Lean Transformation Journey Begins oKanban (pull), Single piece flow, participative, Lean (super cell) production system oLearning culture development- Associate engagement and participation, processes require folks to actually “know” the operations. Tooling U System and Leadership Development  Key Business Objectives o100% fill on time o20% operating profit

toolingu.com Sturm, Ruger & Co., Inc. o12X year inventory turns o33% sales from profits on products launched within 2 years oNew Product introductions oNew product platform- 6 months oNew product, concept to box- 12 months  Key considerations for Tooling U online training oNo classroom instructor, no actual classroom time oLess time out of the workplace oNo seminar type environment oTraining could be done at home oCould apply technical knowledge in the workplace immediately o Good real time reportable, record keeping of all training and rate of success

toolingu.com Sturm, Ruger & Co., Inc. oRegular monthly reporting of utilization data oUser access able reporting on utilization information as required.   Design and Implementation of Tooling U training system o oDeveloped new labor classification system for all positions o oClasses based upon duties and accountabilities o oDeveloped a mandatory and elective curriculum for each classification o oAssigned each individual into the appropriate classification o oUploaded all assignments into each Tooling U to appropriate curriculum o oAssigned a minimum number of courses successfully completed by each individual each month o oConducted regular monthly and special ad hoc audits regarding utilization

toolingu.com Sturm, Ruger & Co., Inc.   Learning Objectives and Desired Outcomes o oTechnical Knowledge of CNC machining skills learned o oCompliance issues learned and documented o oGroup and Team Leader leadership training o oTrades knowledge learning   Other training enhancements o oExtensive on the job training using JI o oSome classroom training- Programming offsets, programming CMM, Gauging   Lessons Learned from the Tooling U implementation o oTake implementation a step at a time, no multiple implementations simultaneously o oDevelop a system of agreed upon accountabilities prior to implementation.

toolingu.com.) toolingu.com Tooling U User Group Discussion Las Vegas September 12, 2011

toolingu.com  Welcome  Cayla Brumble - Director of Training  Established in 1965, PRYER is a privately held corporation  Manufacture parts for business, commercial, military planes and the space program.  Fabricate aerospace components - composite, sheet metal and machined parts.  We are vertically integrated.  120 employees with two plant locations in Oklahoma

toolingu.com  In Aerospace we are held to a high level of training and verification of training.  FAA (Federal Aviation Administration) guidelines and audits  Customer audits with required training verification  Industry certifications with audits and proof of required training  Our training program was designed based on our company need for skilled employees.  We combined online training, instructor-led training, and hands-on knowledge. Our motivation for blended learning was to get our unskilled employees up to speed faster and cross train current skilled employees in other production areas.

toolingu.com  We opted for Tooling U it helped us solved an immediate challenge of two locations and two shifts.  In 2008 we rolled out Tooling U.  Rollout of Tooling U - Our roll out team, consisted of production employees. They were trained first and we uncovered a few challenges before training other employees.  Employees with no computer skills  Employees with English as second language

toolingu.com  We have set up a Tooling U computer room, our production employees are able to go and take their classes.  Headphones for employees who learn with audio  Vocabulary words were printed, laminated and kept in the lab  Some employees complete classes at home or on mobile devices, while at their children’s sporting events.  All Tooling U classes were purchased for each employee. With our focus on Production, Planning, Contract Review, Inspection, and Maintenance. This is a positive benefit with our hiring candidates when they ask about our training program.

toolingu.com  Our talented employees have completed over 7,000 Tooling U classes.  We will continue to invest time and resources to train our employees.

toolingu.com.) New Hampshire Ball Bearings, Inc. toolingu.com Tooling U User Group Discussion Las Vegas September 12, 2011

toolingu.com New Hampshire Ball Bearings, Inc.  Introduction Acknowledgement  Our names Donna Cadrette and Sheila O’Brien  Our role Divisional Trainers  Company overview New Hampshire Ball Bearings, Inc. (NHBB) NHBB is part of the Minebea Group family of companies headquartered in Tokyo, Japan The world’s largest producer of miniature ball bearings and a world class manufacturer of precision bearings and assemblies for the aerospace, defense, medical/dental, and high technology markets The Minebea Group comprises: 60 subsidiaries and affiliates in 17 countries employing approximately 40,000 people  Locations:Astro Division – Laconia, NH - Union Shop - Donna HiTech Division – Peterborough, NH - Sheila HiTech Division – Peterborough, NH - Sheila Precision Division – Chatsworth, CA NHBB operates three highly specialized precision manufacturing facilities in the United States  Astro and HiTech are within the top 10 largest employers in NH – over 1000 Employees

toolingu.com  Overview of need for training  Improved productivity, organizational growth, maintaining a competitive advantage Our workforce paradox--the need for skilled machinists and technically- competent production workers continues to dramatically increase while the prevalence of these desired skills among the workforce continues to rapidly decrease overall In response, we MUST accelerate our training and development programs In response, we MUST accelerate our training and development programs  Key business objectives  Reduce scrap, increase productivity, improve on-time delivery to the customer through an empowered workforce dedicated to continuous improvement.  Key considerations for designing our training program  A formalized, consistent program to enhance current skills, production time and self- investment programs  Limited Trainer resources  Why we opted for Tooling U  Unique on-line MFG adult learning, self-pacedTargeted to key business metrics  Variety of subjects Convenient – accessible 24/7 New Hampshire Ball Bearings, Inc.

toolingu.com New Hampshire Ball Bearings, Inc.  Overview of how we designed the Tooling U program ASTRO Division  In-House Program – Access to Computer Lab, 1:1 with Trainer, 2 hours during work week.  Volunteer Home Program – classes are completed outside of normal work hours. HITECH Division In-House Program – Access to Computer Lab, 3:1 with Trainer, 2 hours during work week. In-House Program – Access to Computer Lab, 3:1 with Trainer, 2 hours during work week.  Desired outcomes  Improve skills and competency  Improve cross training & job transferability  Improve employee moral and bolster promotable potential  Key training/learning objectives  Move beyond basic machine skills  Refine ‘shop skills” such as math, gaging, blueprint reading, etc.  Overview of how we implemented and rolled out to workforce  It took time to gain go-forward support for TU so our first year enrollment was essentially on an individual approval basis. Later, government grant funds became available which defrayed some cost so we transitioned to an open enrollment.

toolingu.com New Hampshire Ball Bearings, Inc. Continued overview of how we implemented and rolled out to workforce  Presentation and demo for supvs/mgrs  Trial accounts setup for supvs/mgrs to explore  Arrange for space and computers to conduct training  Solicit managers/supervisors as to who should participate  Administer pre-assessments and develop course curriculum relative to job function  Briefing session for students and supvs (show TU website & 8 min video)  Create a schedule for classes  Prepare instruction booklets and materials needed--headsets  On-going training provided from in-house Trainer  Celebrate success Key Tooling U pieces/functionality for supporting our objectives  Access 24/7 - Audio option  Pre & post assessments - Quizzes and labs  Administrative capability - Ability to set our own requirements  Reporting system- TU service support  Transcripts shows only highest score (all about learning)

toolingu.com How long have you been live with Tooling U ASTRO – July, 2009HITECH - July, 2010 Other critical pieces of program, i.e. shop floor, classroom, etc. Tutors, On-the-job training, Professional Development Planning, Computer classes Tutors, On-the-job training, Professional Development Planning, Computer classes For whom? Line Leaders, Supervisors, Machinists, Quality Inspectors, Technicians, Engineers, Sales, Administrators, Maintenance Line Leaders, Supervisors, Machinists, Quality Inspectors, Technicians, Engineers, Sales, Administrators, Maintenance How many? students per 3-month session Summary of outcomes and results ASTRO 124 employees - 3,912 hours – 4,763 classes HITECH 45 employees – 705 hours – 1,237 classes In partnership with other various aspects, we reduced scrap, increased productivity and increased on-time deliveries at both divisions NEW HAMPSHIRE BALL BEARINGS, INC.

toolingu.com  Summary of ongoing progress  New Terms start October, 2011  ASTRO 11 students, HITECH 18 students  Continuous Improvement culture  “Learning Organization” - NHBB company value  Implement new TU features  Ongoing challenges  Training funds in a business environment are always being scrutinized for the value added so matching grants make it a certainty.  Both Divisions will apply for a Government Grant as they become available  A settled and quiet location for on-line training (HITECH moved 3 times)  Pulling production workers off the mfg floor for 2-hr training  Helping students who are inexperienced with computer technology overcome fear and anxiety New Hampshire Ball Bearings, Inc.

toolingu.com  Key lessons learned  Need quiet space  Set a fixed schedule for training (allow flexibility to re-schedule time)  In-House Trainer guidance at least during the first 4-5 weeks of training  Good study skills will help students progress further  Be prepared to support students with generational differences The company investment is valued and appreciated by employees and in turn the Company has realized productivity gains - Win/Win the Company has realized productivity gains - Win/Win New Hampshire Ball Bearings, Inc.

toolingu.com.) toolingu.com