APPLIED ENGINEERING, INC.

Transcription

1 GROWTH DAY EVENT

2 APPLIED ENGINEERING, INC. Agenda Company Overview Facility and Capabilities Preferred Supplier Characteristics Future Cost Reduction Opportunities

3 Applied Engineering Company Profile Founded in 1965 in Rochester, MN Moved to Yankton, SD in 1984 into 25,000 Square Feet Current Facility is at 91,000 Square Feet (Recent Additions 2006, 2008, & 2011) Company Size: ($20M+ Annual Sales, 165 employees) Core Product/Service: Precision Machined Components / Assemblies 9 Acres available for future expansion

4 Facility Layout

5 Applied Engineering Team Resources 6- CNC Programmers 2- Robotic Programmer 2- CMM Programmers 2- Tool Room Machinists 15- Setup/Machinists 3- Engineers 2- Quality Engineers 11- Quality Techs 4- Final Inspectors 3- Customer Support

6 In-House Machining Capabilities 36 Horizontal Machining Centers 29 Machines on 7 FMS Rail Systems (339 Pallets ) 6 Machines Automated with Robotics 1 Matsura 5-Axis Vertical (16 Pallets)

7 Optimum Parts to Machine Hog outs with a Large Amount of Material Removal Casting Conversion to Hog Outs (C2HO) Complex Parts that Create Challenges Competitive Prices since parts are only Setup once for the life of the Part (Multi-Year / Multi-Contract)

8 Robotics - Secondary Drill/Deburr Surface Blast for Consistent Finishes and Deburring Drill/Deburr Parts Before and After Plating

9 Additional In-House Capabilities Hardware Installation Helicoil Installation Large Assemblies Masking Painting (NADCAP) Silkscreen Chem-Film (NADCAP) Complete Tool Room / Fixture Production Reverse Engineering Kitting Component Parts RFID Technology Pick to Light (Coming Soon) Supplier Diversity Award

10 Quality Department 3 CMM Machines Metron G2 Laser Scanner

11 Quality Department Models translated to Solidworks for Ballooned Drawings and translated to PAS for CMM programming. CMM data exported to Inspection Expert Software. Export AS9102 Data directly to Honeywell via Net Inspect.

12 Applied Engineering Certifications ISO9001 AS 9100 NADCAP Chem Film NADCAP Wet Paint

13 Applied Engineering Major Customers

14 Applied Engineering's Characteristics as a Preferred Honeywell Supplier Lean and Six Sigma Integration Innovative Process Control Cost Reductions/Value Added Integrated Business Management Systems On-Time Quality and Delivery Performance Financially Stable / Able to Invest in Future Growth Clear and Visible Metrics at Applied Engineering Web Based Honeywell AS9102 System Commitment to Health, Safety and the Environment

15 Lean and Six Sigma Integration Lean Supplier of the Year Plant Layout and Process Flow Driven by Lean Initiatives Business Process Driven by Lean Initiatives and Error Proofing Daily New Part Review Identifying Risks before Introduction TIP Program (Every Employee has an Active Role in Continuous Improvement) Established 6S Program

16 Innovative Process Control Tool Management Process / Tool Vendor Program World Class Tool Testing Program

17 Innovative Process Control (Cont) Statistical Process Control in Machining Electronic Standard Work Instructions

18 Innovative Process Control (Cont)

19 Cost Reductions/ Value Added Applied Engineering works with Honeywell s Engineers on cast to hog out conversions Castings to Hog outs (C2HO) Material and Hardware Selection Surface Finish Increase Radii for Maximum Machine Rates Part Tolerance Machinability

20 Cost Reductions/Value Added (Cont.) Extensive Involvement in Urbana light housings C2HO for: PN & -2 Wing Tip PN & -2 Wing Tip PN & -2 Wing Tip PN Nav Light Flange PN & -2 Taxi Light Box Created 3 D model and developed Olathe radar housing PN C2HO Extensive involvement in Phoenix radar housing PN C2HO

21 C2HO - Wing Tips

22 C2HO - Radar Base

23 C2HO - Radar Base

24 Business Management Systems Vendor Managed Inventory At AE (Suppliers) Facility Pull Parts (Kanban) for Olathe, Urbana, Malaysia, & Albuquerque Electronic Forecast Management plans production and materials M1 ERP System with Shop Floor Management MAST / SAIL software manages flow on FMS systems

25 AE On-Time Delivery and Quality Performance Honeywell 95.61% OTD - March 82.12% OTTR - March 0 DPPM - March (6,315 Parts Delivered) 97.43% OTD - Last 3 Months 90.65% OTTR Last 3 Months 1,122 DPPM Last 3 Months (17,823 Parts Delivered) 98.45% OTD - Last 12 Months 87.43% OTTR Last 12 Months 666 DPPM Last 12 Months (73,554 Parts Delivered)

26 Clear and Visible Metrics at Applied Engineering Business Objectives (By Priority) Safety Quality Schedule Cost AE Priorities for all Meetings, Postings and Measurements

27 Honeywell Systems Support AE aggressively supported Honeywell s transition from ESIS to HASP System Dec 2012 AE implemented systems supporting Honeywell Web Based AS9102 System (Net Inspect) since Sept 2012 Honeywell on line portal forecast downloaded weekly supporting forecast planned production and materials

28 Commitment to Health, Safety, and the Environment Wellness Program 10 Year OSHA SHARPS Award Recipient Longest Running in Region VIII Coolant Life Extension Filter and Reuse Recycle all Used Oil and Evaporated Coolant Recycling of Used Paint Waste Recycle of Aluminum Chips Compact Chips, Extract/Recycle Coolant Automated Chem-Film Monitoring, Testing, and Filtering

29 Future Cost Reduction Opportunities Implementation of tangless helicoils in place of tanged helicoils 6061 aluminum extruded bar instead of 6061 aluminum plate material. Drawing / Specification Clarification (raw material, hardware, etc.) SPOC requirements for low volume parts New Part Design Review Available - Cost Drivers

30 Why Grow Business with AE? Professional On Time, On Quality, On Cost Responsible Employee Safety, Customers, Environmental Impact & Community Customer Focused Partnership Ability to Grow to support Honeywell Innovative use of technology Reinvesting into Community Technical Training Easy to deal with Accommodating

31 AE CONTACTS Applied Engineering, Inc E. Hwy 50 Yankton, SD Phone: Fax: Web: Richard Stark, Customer Service Mgr. Phone Ext. 118 Donna Peterson, Customer Service Tech Phone Ext. 120 Dave Brinkman, Sales Engineer Phone Ext. 125 Mark Anderson, Quality Mgr. Phone Ext. 111 Tom Bohnet, President Phone Ext. 131 Bob Thompson, Business Development Mgr Resident in Phoenix, AZ