Discipline / Competence / Innovation / Transcendence / Sincerity / Harmony

1. Discipline / Competence / Innovation / Transcendence / Sincerity / Harmony

2. CCSD / Cal Comp USA • Employees - 120 in San Diego • Full Service EMS / ODM Company including Design, Layout, Rapid Proto-Typing, DFM & DFT, RF Technology, Supply Chain Management, Order Fulfillment • AS9100, ISO/TS 16949, ISO 9001 & 13485 • Aerospace & Military Customers:

3. 1.1.4 Continuous Improvement Management • How does your organization select improvement priorities and review progress on improvement initiatives? • How are process owners, master trainers, and strategic champions included in this process? • How are improvement projects and teams selected and given direction? • How is a standard problem-solving model deployed throughout the organization? • How are recognition and sharing of key learning accomplished? • How are process improvement ideas solicited, reviewed, approved, and implemented? • How is a high level of workforce participation ensured? • How are improvement suggestions recognized? • How are suggestions made visible in work areas?

4. Continuous Improvement Mgmt. • What: • Strategic Planning • Values • Vision • Mission • Customer Satisfaction • Organizational Review Who: Quality Council Champions / Process Owners Subject Matter Experts / Trainers Customer-focused Teams Other Supply Chain Members Universal Support Processes: Business Planning Corrective & Preventive Action Continuous Improvement Management Input: Customers need continually increasing quality, productivity & service value Output: Customers get continually increasing quality, productivity & service value Document Control Information Services Purchasing Maintenance Management Review Continuous Improvement Measures: Team Performance Metrics Team Process Improvement Metrics CI Management Process Improvement • How:WI 5.6.1.1.01 • The Quality Council: • Selects strategic improvement priorities • Assigns team members to improvement projects • Provides teams with direction, guidance & support • Reviews improvement project progress • Improvement Teams: • Include champions, SMEs, & other members • Utilize PDCA problem-solving tools, etc. • Make results available to the organization • Are recognized for their contributions Staffing Workforce Development Internal Auditing Support Processes

5. HOW:WI 5.6.1.1.01 • The Quality Council: • Selects strategic improvement priorities • Assigns team members to improvement projects • Provides teams with direction, guidance & support • Reviews improvement project progress • Improvement Teams: • Include champions, SMEs, & other members • Utilize PDCA problem-solving tools, etc. • Make results available to the organization • Are recognized for their contributions

6. Selecting Improvement Priorities The model of a process-based quality management system shown in Figure 1 illustrates the process linkages presented in clauses 4 to 8. This illustration shows that customers play a significant role in defining requirements as inputs. Monitoring of customer satisfactionrequires the evaluation of information relating to customer perceptionas to whether the organization has met the customer requirements. The model shown in Figure 1 covers all the requirements of this International Standard, but does not show processes at a detailed level. NOTE In addition, the methodology known as “Plan-Do-Check-Act” (PDCA) can be applied to all processes. PDCA can be briefly described as follows. Plan: establish the objectives and processes necessary to deliver results in accordance with customer requirements and the organization's policies. Do: implement the processes. Check: monitor and measure processes and product against policies, objectives and requirements for the product and report the results. Act: take actions to continually improve process performance. Figure 1 — Model of a process-based quality management system AS9100C:2009-01, Page 6 of 33

7. Model of a Process-based QMS

8. WHAT YOU ARE DEEPLY PASSIONATE ABOUT WHAT YOU CAN BE THE BEST INTHE WORLD AT WHAT DRIVES YOUR ECONOMIC ENGINE Developing the Hedgehog Concept The Hedgehog Concept is a simple crystalline concept that flows from deep understanding of three circles: Jim Collins, 2001 pgs. 95-96

9. The CCSD Quality Council • One particularly useful mechanism for moving the process along is a device that that Collins came to call the Council • The Council consists of a group of the right people who participate in dialogue and debate guided by the three circles, iteratively and over time, about vital issues and decisions facing the organization • Jim Collins, 2001 pgs. 114-115

10. Accelerating the Iterative Process To speed-up the formulation of the Hedgehog Concept, increase the number of times you go around that full cycle in a given period: ASK QUESTIONS, GUIDED BY THE THREE CIRCLES AUTOPSIES AND ANALYSIS, GUIDED BY THE THREE CIRCLES DIALOGUE AND DEBATE, GUIDED BY THE THREE CIRCLES EXECUTIVE DECISIONS, GUIDED BY THE THREE CIRCLES Jim Collins, 2001 pg. 114

11. WHAT YOU ARE DEEPLY PASSIONATE ABOUT WHAT YOU CAN BE THE BEST IN THE WORLD AT WHAT DRIVES YOUR ECONOMIC ENGINE Developing the Hedgehog Strategy The Hedgehog Strategy: CCSD can be the best in the world at offering distinguished value-added EMS / ODM Services:

12. Total Spectrum of Manufacturing Solutions Product Design Services Process Design Services New Product Introduction Supply Chain Management Manufacturing Services Logistic Services After-Market Services Next Generation Services Process Engineering Product Engineering Prototyping Consulting & Planning SMT & PCBA Transport Forwarding Repair & Warranty Smart Systems Design For Manufacturing Product Development Tool & Mold Design BOM Analysis Plastic Injection Molding Warehouse Management Reverse Logistics Value Engineering Implementation Service Process Tech. Development Purchasing Backplanes Distribution E-commerce Replace Pool Customer Feedback Design For Test Environmental Engineering Assembly Documentation Logistics Machining & Enclosures Customs Clearance Failure Analysis Continual Improvements Engineering Documentation Lifecycle Engineering Info. & Sys. Integration Cabling Information Integration E-waste & Recycle Design for X Seamless Transfer ODM Regulatory Compliance BTO/CTO Order Fulfillment RMA Test & Quality Assurance Documentation Packaging

13. WHAT YOU ARE DEEPLY PASSIONATE ABOUT WHAT YOU CAN BE THE BEST INTHE WORLD AT WHAT DRIVES YOUR ECONOMIC ENGINE Developing the Hedgehog Passion The Hedgehog Passion: CCSD is deeplyPASSIONATE about getting 10 great customers to attribute their success to CCSD

14. WHAT YOU ARE DEEPLY PASSIONATE ABOUT WHAT YOU CAN BE THE BEST INTHE WORLD AT WHAT DRIVES YOUR ECONOMIC ENGINE Developing the Hedgehog Engine Profit per customer drives CCSD’s economic engine: The Hedgehog Economic Engine

15. SWOT ANALYSIS Internal Weaknesses Internal Strengths External Threats External Opportunities

16. Change-State (Hoshin) Planning Destination (Vision – Future State) Change-State (Hoshin) planning is the short-term & long-term process used to identify & address critical needs. Where are we now? (Present State) Where are we going? (Future State) How will we get there? (Plan) What are the obstacles? How will CCSD navigate the road to achieving the vision? Starting Point (Present State)

17. Change-State (Hoshin) Planning Destination (Vision – Future State) Hoshin planning targets the critical few big obstacles (Boulders) on the road. The small obstacles (Small Stones) are handled by operations. A common mistake is to take on too much, dilute energy thereby, and achieve nothing in the end. Use Hoshin to remove big obstacles (Boulders) Use Operations to remove small obstacles (Small Stones) on the road Starting Point (Present State)

18. Obstacles & Opportunities (Boulders)

19. Ensuring a High Level of Participation Alignment Alignment after Hoshin Planning Alignment before Hoshin Planning Flexibility: As the business environment changes, CCSD activities change quickly with it

20. Process Champions, Owners, & Trainers

21. Team Selection & Direction • Customer-focused Support Teams • Program Manager • Mfg. / Quality Eng. • Test Engineer • Production Planner • Value Stream Mgr. • Purchasing Agent • Customer-Focused Operations Teams • Cell Leaders • SMT Operators • Assembly Operators • Test Technicians • Quality Technicians • Route Runners CUSTOMERS

22. Team Selection & Direction Direction Customer-Focused Operations Teams Quality Council Customer-focused Support Teams Customer-focused Support Teams Quality Council Customer-Focused Operations Teams Support

23. Standard Problem-Solving Model

24. Improvement Idea Solicitation • Each team member silently thinks of and writes down as many ideas as possible in a set period of time (5 to 10 minutes). • Each member in turn states aloud one idea. Facilitator records it on the flipchart. • Continue around the group until all members pass or for an agreed-upon length of time. • Discuss each idea in turn. • Prioritize the ideas using multi-voting or list reduction. • Come to consensus on the team’s top seven collective ideas. • Assign team members to the ideas along with completion times. • Track assignments through to completion or revision. • Recognize and reward team members for their contributions.

25. Tracking Suggestions in the Gemba • Suggestions are reviewed as part of regular team meetings • A3 Storyboards are used to provide a history of improvement milestones • Progress toward implementation is tracked through each team’s responsibility matrix • Awards are passed down through the teams beginning with the champion

26. Thank You Kenny Heifner CQO & Senior NPI Executive Cal-Comp Electronics (USA Operations) kheifner@calcompusa.com 9877 Waples Street San Diego, CA  92121, U.S.A.858.587.6960 (office) 858.731.6611 (cell)