SUPPLIER EXCELLENCE ALLIANCE and

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SUPPLIER EXCELLENCE ALLIANCE and

• HITCO Carbon Composites, Inc.
• Gardena, California
• Engagement 2
• 2005
• presented at St. Louis, Missouri, July 13, 2005

HITCO Proprietary
HITCO CARBON COMPOSITES, INC.
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AGENDACompany OverviewSummary 2004 SEA
EngagementSummary 2005 SEA EngagementCase
Study Supply Chain Process Flow
HITCO Proprietary
HITCO CARBON COMPOSITES, INC.
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AGENDACompany OverviewSummary 2004 SEA
EngagementSummary 2005 SEA EngagementCase
Study Supply Chain Process Flow
HITCO Proprietary
HITCO CARBON COMPOSITES, INC.
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Briefly, who we are..

• Founded by Harry I. Thompson in 1922
• HITCO a California corporation in 1946
• Acquired by SGL Carbon Group (Germany) in 1997
• Gardena facility on 26 acres w/ 400,000 sq. ft.
  under roof
• Core competencies in
• Composites and assembly for large and complex
  aircraft structural components
• Space propulsion nozzle components fabrication
  and assembly
• Carbon/Carbon fabrication and processing
• Low and high temperature insulation products for
  aerospace and commercial/industrial applications

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HITCO Vision
We strive to enable our customers to realize
their objectives by providing engineered
solutions and supply chain management in
composite materials, structures and
sub-assemblies.
HITCO Values

• We value honesty, openness and mutual respect.
• We value everyones ideas and contributions.
• We believe in accountability for the commitments
  we make.
• We are committed to operate with the highest
  level of integrity
• and to the highest ethical standards.
• We are committed to safety and quality in all of
  our processes.

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HITCOs organization, mission, goals and
objectives for 2005 and beyond are driven by the
following
Perform . . . on existing programs Win . . .
new programs consistent with our core
competencies and financial
metrics Grow . . . with sustainable performance
and profitability.
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AGENDACompany OverviewSummary 2004 SEA
EngagementSummary 2005 SEA EngagementCase
Study Supply Chain Process Flow
HITCO Proprietary
HITCO CARBON COMPOSITES, INC.
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2004 SEA Projects were focused on individual
processes . . .
Receiving Inspection Process Time 34
reduction Shipping Incomplete Shipping
Instructions 78 reduction Manufacturing
Processes Brake Machining Process Time 40
reduction Atlas V Nose Fairing Labor Hours 30
reduction Lab process time 54 reduction
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. . .yielding significant improvements in process
flow.
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AGENDACompany OverviewSummary 2004 SEA
EngagementSummary 2005 SEA EngagementCase
Study Supply Chain Process Flow
HITCO Proprietary
HITCO CARBON COMPOSITES, INC.
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2005 SEA Projects are focused on integrated
business functions . . .

• Resource Requirements Planning System
• Visual Factory / Shop Metrics / 6S
• Corrective Action / Useful Defects Data
• Estimating
• Process Flow C-17 Tailcone

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HITCO/SEA Overall Engagement 2 Timeline
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Case Study Supply Chain Process Flow C17
Tailcone Participants Venture Mfg. HITCO
Carbon Composites Boeing C17 Program
HITCO Proprietary
HITCO CARBON COMPOSITES, INC.
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WAS
HITCO SUPPLIERS
PUSH
Issues
Issues
HITCO Source/Rec/Insp
HITCO Tailcone
PUSH
Issues
BOEING Suppliers
Issues
Rec/Insp
Stuff the Tailcone
Rework Fill/Fair
Tailcone Subassy
C-17 Final Assy
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Transition . . .
Metals Kit
1
PULL
HITCO Source/Rec/Insp
HITCO Tailcone
PUSH
Issues
BOEING Suppliers
Issues
Rec/Insp
Stuff the Tailcone
Rework Fill/Fair
Tailcone Subassy
C-17 Final Assy
16
Transition . . .
Metals Kit
Stuff the Tailcone
1
PULL
HITCO Source/Rec/Insp
HITCO Tailcone Stuff
PULL
Issues
BOEING Suppliers
Issues
Rec/Insp
2
Rework Fill/Fair
Tailcone Subassy
C-17 Final Assy
17
Transition . . .
Metals Kit
Stuff the Tailcone
1
PULL
HITCO Source/Rec/Insp
HITCO Tailcone Stuff/Radome Match/Fit
PULL
Issues
BOEING Suppliers
Issues
Rec/Insp
2
3
Tailcone Subassy
C-17 Final Assy
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Transition . . .
Metals Kit
Stuff the Tailcone
1
PULL
HITCO Source/Rec/Insp
HITCO Tailcone Stuff/Radome Match/Fit
4
2
PULL
3
C-17 Final Assy
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Will Be
Metals Kit
Stuff the Tailcone
1
PULL
5
HITCO Tailcone Stuff/Radome Match/Fit
4
2
PULL
3
C-17 Final Assy
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BEFORE
HITCO SUPPLIERS
PUSH
Issues
Issues
HITCO Source/Rec/Insp
HITCO Tailcone
PUSH
Issues
Issues
BOEING Suppliers
BOEING Suppliers
Issues
Issues
Rec/Insp
Stuff the Tailcone
Rework Fill/Fair
Tailcone Subassy
C-17 Final Assy
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AFTER
Metals Kit
PULL
HITCO Tailcone Stuff/Radome Match/Fit
PULL
C-17 Final Assy
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C-17 Tailcone Integration Metrics

• Use of Pull Signal
• 7 to 11 day receiving/administrative process
  reduction at Boeing
• HITCO accuracy at matching pull signal now /- 3
  days and improving
• Supplier Count Reduction
• Boeing (3)
• HITCO (3)
• Total (6)
• 
  
• Net Process Hours Reduction of 10 at HITCO and
  improving
• Transactional Volume Reduction at Boeing (less
  inventory, warehouse, MRP, receiving,
  transportation transactions)
• Exact cost savings being calculated
• 
  
• Inventory Turns Improvement of 12 on this
  program at HITCO
• Inventory Carrying Cost Reduction at Boeing
• Exact cost savings being calculated
•