1. MANAGEMENT REVIEW PHOENIX AZ BRANCH 711 AUGUST 2011

2. MANAGEMENT REVIEW • Action item request JUNE 2011 • Sergio Rosas/ Daniel Bailey • Need action plan for returned pipe and where to stage also need location map on pipe yard to be posted on fork lift and yard quality board • Target date - July 29, 2011 • Yard map finished ,Sergio Rosas to approve yard map to be posted by Daniel B at locations, action plan still in process of being completed. • Closed -August 5, 2011 • Yard map approved, maps posted meeting held with employees on map and staging • ACTION ITEMS FOR JULY 2011 • Daniel bailey • Need water line run thru out warehouse to feed new eye wash stations • TARGET DATE - AUGUST 31, 2011 • Closed - August 19,2011 • Price to run water to locations and cost of new eyewash stations too costly versus the cost of the existing eyewash cartridges. • RESULTS OF AUDITS - Zero in august

3. MANAGEMENT REVIEW • Customer feedback • Incident reports customer • 1.C-711-111, DRRS Plumbing – Matrix error for some reason his multiplier was taken out . error code C-16 (Joe Balestreri) • SURVEYS: Zero received back august

4. MANAGEMENT REVIEW • Supplier performance &conformity • 1. S-711-021, ALLIED – 2 Lifts of 1x21 Dyna thread short ¾ inch pipe staged in quarantine area and tagged waiting on upper management & vendor for final decision.(Sergio Rosas) • 2. S-711-020,FPPI – Short 9 signs part # f0207400,called vendor they shipped the 9 signs that were short.(Sergio Rosas) • 3. S-711-019, Victaulic- Vendor shipped 4 inch not 6 inch p/n & their p/s was correct. Vendor notified they are shipping correct material. (Danny Garcia) • 4. S-711-018, Victaulic – Ordered sprinkler heads and received 4 grooved 45’s,paperwork was correct. Vendor notified they are shipping correct material.(Danny Garcia)

5. MANAGEMENT REVIEW • Measurable Objective July 2011

6. MANAGEMENT REVIEW • Overview of key performance indicators • SUPPLIERS: • • 1. COMPLIANCE TO AML = 100% • • 2.Suplier nonconformance's-Four to report in August • • 3. Product inspection-Allied 2 LIFTS OF 1 INCH PIPE 21-0 long was found to be ¾ inch short. • • 4. Suppliers on time deliveries 100% in June. • • CUSTOMER: • • 1.0n-time delivery rate= 91% • 2.Customer feedback (incident reports) total of six incident reports. • • 3. customer surveys – Zero turned in August • • 4. total credits for the month of July • Internal performance: • • BPR=92.9% • • Tax discrepancy -ok at this time • • Freight billing -within limits • • Repair on equipment-Refurbished battery charger for picker/ manlift $ 700.00 • • Days of inventory on hand 30 • • Dead inventory on hand 2% • may zero injuries • Auto/truck incidents-zero to report • Safety inspection-up to date no incidents to report • • Training on associates-Steven Blais fork-lift training needed

7. MANAGEMENT REVIEW • Overview of corrective actions/incidents reports • AUGUST 2011 • Corrective action reports –zero to report • Customer incidents- 1 • Supplier incidents-4 • Internal incidents- 0

8. MANAGEMENT REVIEW • Preventive actions –one to report for august on pipe yard and staging closed 8-15-11 • Training &resource needs- fork lift training for Steve Blais • Changes impacting quality management system (changes in business) none at this time.