Organizational Performance Review February 11, 2011 Jason Cox Chief Technical Officer Cox Machine, Inc.

Aerospace components and assemblies since employees ~20M sales Machining in Wichita, KS Sheet-metal in Harper, KS Major customers Spirit, Cessna, Vought, Gulfstream, HBC, Boeing

Organizational Performance Review Process (TLD 1-1-3) Section 2—Definitions Corporate Scorecard The scorecard is a balanced measure of performance in the following categories: Financial Performance Customer Performance Internal Performance Learning & Growth The categories are divided into weighted subcategories, and assigned a score from 1 to 5 (1 being best). Scores of a 4 or 5 requires that corrective actions be added to the Action Item List.

Organizational Performance Overview (TLD 1-1-3) Learning & Growth Internal Performance Customer Performance Financial Performance

Organizational Performance Review Process (TLD 1-1-3) Scorecard Review Senior and Division management meet monthly to review the scorecard for continuous improvement, add any necessary action items, and review the progress on previous action items. The information is flowed throughout the divisions using scheduled meetings, and the scorecards themselves are posted by division. Components of the Organizational Performance Review Process Corporate Scorecard Divisional Scorecards Action Item List

Organizational Performance Overview (TLD 1-1-3) Learning & Growth Internal Performance Customer Performance Financial Performance Inventory Turns Employee Survey Sales per Employee Quality Delivery OEE LTA Business Growth Turnover Customer Performance Customer Satisfaction Profit Margin Cash Flow Sales Increase

Standard Meeting Agenda Scorecard Review Profit, Cash flow, Sales Increase (COO) Customer Performance (CTO) Customer Satisfaction (VP, Business Development) Quality (PPM, Scrap $, COV) (VP, Quality) On-time completion, OEE (CTO) LTA Business Growth, Turnover (VP, Business Development) Inventory turns (CTO) Employee Survey (VP, Business Development) Sales per Employee (CTO) Review Action Items from Previous Meeting Assign New Action Items

Scorecard

Scorecard

SOPs Management Commitment-Responsibility, Authority and Communication In addition to the suggestion program stated above, the SLT holds meeting primarily on a weekly basis, and monthly meeting are held by the SLT with Division Management to review division scorecards. Division Management in turn holds periodic meetings with shop Supervision to flow down communication content. On an annual basis, Cox Machine holds an off-site “All Hands” meeting with all personnel throughout the organization to flow down communications Continuous Improvement System Performance Measures Performance Measures: Cox Machine, Inc. shall develop and document a continuous improvement system. This system is to include performance measures to promote customer satisfaction, such as customer satisfaction, internal scrap, waste, internal quality ratings (ppm), production metrics such as past due hours, standard hours vs. actual hours, and capacity metrics.