Casting “DISA” Outsourcing Project

1. Casting “DISA” Outsourcing Project

2. South Milwaukee - 2008 Timing • Launch – Took 10 – 14 weeks for initial castings to flow • 2-3 weeks to figure out plan – started from Ground Zero…. • Had to learn about tooling – both cores and patterns • Had to review supplier options and capabilities • 2-3 weeks to “build out” current orders • SM had to build out Cores and then close out production runs – in the middle of run prioritization Plants did not want any gaps in the top runners for fill rate issues • 1-2 week to ship tools and modify at suppliers • Most tools required modifications (pour cups, pattern mounting , core boxes, core masks etc) • 1-3 weeks for trial runs • Core run trials were first • Limited production run – supplier had to complete dimensional reviews and send to mfg plants • 5 days for quality inspection • Over-night samples to plants – then samples sent overnight to Rosemont for review • Worked through grinding, hardness, lettering and print issues • 2-4 weeks for regular production run at suppliers (core build, castings & anneal) • 1 week for shipment of product to plants

3. Actions to speed up 2010 Outsourcing • Moved patterns immediately to previous outsourced suppliers • Immediately kicked off (3) 2013B core masks for 2110, OZ ½ plate and Appleton ½ plate tools for flexibility (finished first set last week) • Kept Core boxes at South Milwaukee • Added 3 additional suppliers to spread work around and cover all options • Worked up full tooling strategy to give two to three options across the entire supply base • Wave initial “full PPAP” for parts – allow suppliers to run parts, take initial pictures and send pictures to mfg plants and Rosemont

4. Challenges with the 2010 Outsourcing • Tooling Strategy 570 patterns outsourced – much more complex mix of metals, patterns and cored jobs sent out • Action: EGS team reviewing each pattern and core mask receipt at each supplier to identify any shipping damage and misidentified tooling. Approximately 1,250separate tools have been shipped out. • Action: EGS team came up with a detailed plan for tooling flexibility across suppliers • Summer Shutdown for many suppliers • Action: Suppliers (Anvil and F & J) pulled production up just to allow for a full week of running ahead of extended – two week shutdowns • Manpower needed at Castwell – for Ductile Vertical work • A full shift is being added on 8/11 Had no other options short term option - Anvil on Shutdown / Urick is making tooling – tooling now set up to allow multiple suppliers to manufacture

5. 2008 Outsourcing – Limited Supply Base

6. 2010 Outsourcing – Final Tooling StrategyTooling to be completed by 8/13

7. Final Results – Outsourcing TimingFull production across 7 suppliers after 7 wks

8. Final Results – Outsourcing Timing • Why 18 tons behind now? • Anvil had said they were going to run 80T week of 7/24 (ahead of shutdown) – had meant to say 80K lbs.. 40 tons – Shipped 24 tons before annealing shutdown • Why should we be ahead by 110 tons by end of month? • Full normal production will be achieved by 8/16 • Tooling Complete • Summer Shutdowns over • Manpower hired • What if we have one supplier that doesn’t perform • We now have options to move and will make those decisions week by week • Prioritization – for the next 3 weeks • 5 suppliers need prioritization coming out of the summer shutdown gate / startup stage