1.1.2 Leadership Communication 1.1.2 Leadership Communication

Supplier Excellence AllianceSupplier Excellence AllianceApril 8, 2013April 8, 2013

Presented by John CristmanPresented by John CristmanDirector, Corporate QualityDirector, Corporate QualityIntegrity Aerospace GroupIntegrity Aerospace Groupjcristman@integrityaerospace.comDirect: 248-244-1531Direct: 248-244-1531Mobile: 248-939-0996Mobile: 248-939-0996Web: Web: www.integrityaerospace.comIntegrity Aerospace Group

Leadership Communication

Roadmap to ExcellenceRoadmap to Excellence

X-Ray Industries, Inc.

How do senior leaders communicate and reinforce company direction and expectations (vision, goals, mission, and values) to all employees, customers, and key suppliers/partners?

What are the key process steps and who are the participants?

How do senior leaders encourage frank, two-way communication throughout the organization?

How do senior leaders create and re-enforce a high-performance work culture that embraces standard work, process maturity, and lean production techniques?

How do senior leaders involve themselves in reward and recognition that re- enforces a high-performance work culture?

SEA Leadership Communication 1.1.2

Strategic Planning Process

The Strategic Planning Process at X-Ray Industries is developed in early July using such tools as a detailed SWOT analysis, vision, mission, goals, targets, core values market trends, customer and technology needs / concerns.

Quarterly initiatives are identified (and may be changed throughout the year) and presented to the Business Unit Leaders in September.

The Business Unit Leaders will then assemble their SBP to support X-Ray Industries Goals and present to the X-Ray Leadership team in November.

Leadership

How do senior leaders communicate and reinforce company direction and expectations (vision, goals, mission, and values) to all employees, customers, and key suppliers/partners?

Strategic Planning ProcessLeadership

Strategic Roadmap with the current years “Rocks” on a one page Dashboard

The progress of the Roadmap is monitored daily and communicated Quarterly in what is called a Quarterly Communication package and shared with all Business Units. Some forecasted financials are confidential.

In addition, shared with customers and partners as appropriate.

How do senior leaders communicate and reinforce company direction and expectations (vision, goals, mission, and values) to all employees, customers, and key suppliers/partners?

Quarterly CommunicationA communication package in the form of a PowerPoint presentation is assembled and communicated formally every quarter to show SBP progress and ensuring that open communication has been cascaded through the entire organization.

Leadership

How do senior leaders communicate and reinforce company direction and expectations (vision, goals, mission, and values) to all employees, customers, and key suppliers/partners?

Key Processes / OwnersLeadership

What are the key process steps and who are the participants?

Key Process Owner

Strategic Planning Process Bobby Broaddus

Strategic Road Map John Cristman

Quarterly Communication Bobby Broaddus

Voice Of The Employee (VOE) Diane Dardzinski

Recognizing Excellence Leaders

Recognizing Excellence Award John Cristman

RecognitionLeadership

How do senior leaders involve themselves in reward and recognition that re- enforces a high-performance work culture?

When an employee (at any level) has brought an innovative idea, continuous improvement suggestion or simply has done an exceptional job a Senior leader can recognize individuals for outstanding performance utilizing the “Recognizing X – cellence” Process.

This process can be initiated by any senior leader at anytime, this leader can be a Business Unit Leader or Corporate Leader.

At the Corporate Office in Troy we have what is called the wall of “Recognizing X – cellence”. Employees that have been recognized are posted there.

High Performance Work CultureLeadership

How do senior leaders create and re-enforce a high-performance work culture that embraces standard work, process maturity, and lean production techniques?

The senior leaders lead by example. The Lean Model to the right illustrates X-Ray Industries High – Performance work Culture.

To the left of the diagram you can see the Strategy, Execution of the Strategy, Initiatives, Performance Indicators.

High Performance Work CultureLeadership

How do senior leaders create and re-enforce a high-performance work culture that embraces standard work, process maturity, and lean production techniques?

The diagram to the right is a section right out of our Quality Manual. Nadcap Merit status is a process maturity indicator as well as a high performance indicator.

The Senior Leaders promote 24 month merit status at all locations that are Nadcap accredited, we use the Nadcap Check sheets as a quarterly process audit to ensure compliance.

This standard work process is written into the QMS and is monitored & measured during Quality audits.

Annual Award RecognitionLeadership

How do senior leaders involve themselves in reward and recognition that re- enforces a high-performance work culture?

An annual Quality Award was developed in 2007 based on the Baldrige National Quality Criteria. The Business Unit Leaders completed sections 1 and 2 and the corresponding results categories.

At the end of every year I did a desk audit and the conducted a sight visit based on the Baldrige Scorebook. The location with the highest score won.

In 2011 the Award was change to the “Recognizing Excellence Award” to move away from a “Quality” Award into a Performance Excellence Award.

1 Leadership & 2 Strategic Planning became very aligned during this process.All locations learned and shared best practices.

High Performance Work CultureLeadership

How do senior leaders create and re-enforce a high-performance work culture that embraces standard work, process maturity, and lean production techniques?

Senior Leaders promote a high performance work culture by using a “Report Card” that outlines the criteria for what is called “Recognizing Excellence Award”.

This process once called the “Quality Award” has eight objectives with very precise criteria

1.Safety2.Quality3.Delivery4.Workforce Development5.Continuous Improvement6.Financials7.Conversion

High Performance Work CultureLeadership

How do senior leaders create and re-enforce a high-performance work culture that embraces standard work, process maturity, and lean production techniques?

Above is an example of the “Report Card”, as you can see the criteria and performance definitions are clearly defined. This report card not only impacts the locations year end financial performance / incentives but also impacts the final results for the award.

The award winner gets a plaque and a cookout that is done by the Director of Quality and the President of X-Ray Industries.

Objectives Met Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecSafety 1 1Quality 1 1Delivery 1 1

Work Force Development 1 1Continuous Improvement 1 1

Financials 1 1Conversion 0 0

Total 6 6 0 0 0 0 0 0 0 0 0 0Percentage 86% 86% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

SafetyQuality

Delivery

Work Force EngagementContinuous Improvement

Financials

Conversion

Implemented at least one (2) CI initiative / Idea / Project, 2+ = 1 point, 1 = .5 points 0 = 0 points

Meet or exceeded AOP & Forecast (revised forecast must meet conversion expectations as outlined in the AOP) = 1 point, not met = 0 point

Conversion on sales upward or downwards based on revenue. Upward conversion should always exceed the AOP level because local "fix cost & some variable (SG&A)" will not increase. Met conversion expectations = 1 point, not met = 0 point

DefinitionsAchieve site specific dashboard, all green = 1 point, 1 yellow = .5 point, anything else is 0 pointZero escapes - Zero complaints = 1 point, any escape or complaint is 0 pointsAchieve site specific delivery goal = 1 point, not achieved = 0 pointConducted monthly employee meetings with clear defined agenda---to include site specific business updates to the AOP = 1 point, did not meet = 0 point

Objectives Met Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecSafety 1 1Quality 1 1Delivery 1 1

Work Force Development 1 1Continuous Improvement 1 1

Financials 1 1Conversion 0 0

Total 6 6 0 0 0 0 0 0 0 0 0 0Percentage 86% 86% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

SafetyQuality

Delivery

Work Force EngagementContinuous Improvement

Financials

Conversion

Implemented at least one (2) CI initiative / Idea / Project, 2+ = 1 point, 1 = .5 points 0 = 0 points

Meet or exceeded AOP & Forecast (revised forecast must meet conversion expectations as outlined in the AOP) = 1 point, not met = 0 point

Conversion on sales upward or downwards based on revenue. Upward conversion should always exceed the AOP level because local "fix cost & some variable (SG&A)" will not increase. Met conversion expectations = 1 point, not met = 0 point

DefinitionsAchieve site specific dashboard, all green = 1 point, 1 yellow = .5 point, anything else is 0 pointZero escapes - Zero complaints = 1 point, any escape or complaint is 0 pointsAchieve site specific delivery goal = 1 point, not achieved = 0 pointConducted monthly employee meetings with clear defined agenda---to include site specific business updates to the AOP = 1 point, did not meet = 0 point

Two Way CommunicationLeadership

How do senior leaders encourage frank, two-way communication throughout the organization?

Senior leaders live to our Guiding Principles and all have an open door policy and are approachable by any member of the team at any level.

In addition there is a process called “Voice of the Employee (VOE)” this is a random selection of employees that meet with an HR representative and their manager. The scope of these sessions are to gather information (suggestions) from the employees on process improvements, benefits, overall company health (financial & local customers) and how a manager can improve and grow. These items are tracked in the format shown below.

Two Way CommunicationLeadership

How do senior leaders encourage frank, two-way communication throughout the organization?

“Voice of the Employee (VOE)”

Questions?Leadership

Integrity Aerospace Group

1961 Thunderbird1961 ThunderbirdTroy, Michigan 48084Troy, Michigan 48084248-244-1531248-244-1531www.integrityaerospace.com