Supplier Excellence Alliance (SEA) Process Owner Forum 3.1.1 - Kaizen Presented by: Dan Cannon dan.cannon@ntscorp.com 781-439-5723 October 11, 2010

About NTS A leading provider of Integrated Engineering and Testing Services Founded in 1961 20+ Engineering Offices & Test Facilities (Arkansas, Arizona, Calgary, California, Colorado, Kansas, Massachusetts, Michigan, New Jersey, Virginia) Approx. 700+ Full Time Employees, 150 Project Employees www.ntscorp.com Distinguishing characteristics related to SEA: Service Organization Enterprise-wide approach We continuously strive to make the execution of strategy a core competency Core Values Balanced Scorecard PIPELine Process (SEA)

Thermal Vacuum Chamber Capabilities Vibration Thermal Vacuum Chamber Acceleration 3

Capabilities Shock Testing EMC/EMI Testing Thermal Testing 4 4/25/2017 SEA 2007 All Rights Reserved 4

Why SEA for NTS A lean enterprise eliminates waste throughout the value streams by applying the philosophy & techniques of lean process The goals: On-time Delivery Excellent & Consistent Quality Cost Containment & Cost Reduction A culture where all employees work toward: Customer Satisfaction Lean and other organizational goals Continuously improving personal and team skills

Our Core Values determine how we develop our culture, NTS Core Values Our Core Values determine how we develop our culture, brand and business strategies: Organizational Integrity - we inspire honest and respectful interactions Respect for the Individual – we value initiative, understanding, ethical behavior Quality Customer Service – foster loyalty and respect Stewardship – “Obligations to Stakeholders”- properly utilize & develop resources Embrace & Drive Change - continuous process improvement The Best People Make the Best Teams- attract, retain, develop talent Personal & Organizational Growth- challenge and stretch ourselves One Enterprise- leverage our service, capabilities and relationships 6 6

NTS Strategy Map 3.1.1 Kaizen Process 7 7

SEA Roadmap

Leadership & Culture Processes Plan Act Do Check 3.1.1 Kaizen Process

SEA Kaizen Criteria 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?

SIPOC Suppliers: Inputs Process Output Exec Team: Corporate Strategy Map / BSC Process Mapping Future State Process Maps / SOPs Process Champ.: Team Charter Implementation Leaned Process Leadership Team: Metrics Training Training Materials / Trained Staff Process Owner: Current State Process Maps Recognition Improved Metrics

Continuous Improvement – PIPE Line 3.1.1 Kaizen Process

3.1.1 Kaizen Process Areas Addressed Setup Preparation Event Post Event Feedback Corporate Strategy Map Balanced Scorecard Value Stream Maps Annual Imp. Plan Process Owner assigned to initiate PIPELine team PIPELine Team objectives set via Team Charter and linked to Annual Improvement Plan Process Owner determines Kaizen tool appropriate Kaizen Objectives set and linked to PIPELine Team charter Process Owner or Kaizen Leader collects data from work area related to upcoming Kaizen event Kaizen Leader confirms objectives with Process Owner and Champion Resources are requested and approved by Champion and facility/group directors Kaizen event schedule is set with specific daily action plans Conduct training Assign action plans Daily report outs Pilot run if applicable Create new standard work and training Prepare report out Present results at quarterly Leadership Team meeting Manage event and Leadership Team meeting follow-up Process Maturity Level 2 Gate Review Collect feedback and improve process Areas Addressed

Virtual Kaizen Process What makes it virtual ? NTS enterprise-wide implementation of lean principles Service organization – very few cells or factories Leveraging video/teleconference meeting technology Incremental working meetings rather than start to finish event Structured milestones and goals for each meeting Action items and homework assignments between meetings Collaboration website to post and share results

Process Mapping Example via Virtual Kaizen Order Entry Process

Kaizen Example for Order Entry Screen Order Entry Process

Collaboration Website

Training Plan Example for Order Entry Kaizen

Questions. Dan Cannon dan. cannon@ntscorp. com 781-439-5723 www Questions? Dan Cannon dan.cannon@ntscorp.com 781-439-5723 www.ntscorp.com THANK YOU!