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Agenda

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Agenda

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  1. Agenda • Overview Peter Dayton • Non Ferrous Castings Alex Lin • Forgings and Coils Matteo Sambo • Stampings, Springs and Fasteners Veronique Holmes • Turn Parts, Raw Mat’l & Fe Castings Rob Ingersoll • Electrical, Plastic Parts, Epoxy Chris Myers • Rubber, Teflon, Subcontract Doug Heel • New Products Peter Dayton • Logistics Vivian Chen • MRO / Indirect Al Giarrusso

  2. Gate 7 Gate 2 Gate 4 Gate 6 Gate 5 Gate 3 Gate 1 Phase 1 Phase 5 Phase 2 Phase 4 Phase 3 Phase 6 Product Idea Pilot Run Concept Definition Transition to Production Concept Verification Design & Development Portfolio Projects – Fluid ControlNPD Project Status, Florham Park – Jun. 10 Composite Material Valves 600120 Stainless Steel Offshore Spool Valve Ph1 A 600115 2 Way Direct Ph. 1B 600050 Thermoplastic RHII Coil System 600125 AH/HOV Conversion 600119 Stainless Steel Offshore Spool Valve Ph1 B 600115 HS2 Cost Reduction/ Improvement 600114 Combustion AH4/V710 Trim 600112 Nuclear Zero Min 8316 35112 AS Mini Valve 600098 High Pressure (CNG) Offshore Poppet Harsh Enviro 600116 Nuclear Zero Min 8316 35115 LP Operator Derivatives 600128 Ultra Low Power Launched FY09 FY11 FY10 JHM-Mgmt Mtg 5-19-09 - 2 Project Advancement Since Jun 09 Company Confidential

  3. FY10 / FY11 NPD Project Plans – Fluid Control

  4. Gate 7 Gate 5 Gate 3 Gate 1 Gate 6 Gate 4 Gate 2 Phase 1 Phase 5 Phase 2 Phase 3 Phase 4 Phase 6 Product Idea Pilot Run Concept Definition Transition to Production Concept Verification Design & Development Portfolio Projects – Fluid PowerNPD Project Status, Novi / Mt. Pleasant– Jun. 10 Global 520/L Inline Respironics Regulator R05-301 Atlas 11 mm A-Series Metric Atlas 26 mm KG Series Cost Reduction Atlas 18 mm Atlas 38 mm ISO 6432 Cylinder Atlas 50 mm FRL Global Launched Key Proj’s APG Valves Actuator JHM-Mgmt Mtg 5-19-09 - 4 Company Confidential

  5. FY10 / FY11 NPD Project Plans – Fluid Power

  6. Commodity Strategy / NPD Process Improvement Strategy • Champion Preferred Suppliers & Standard Components • Early Involvement in Design & Development of Projects • Challenge Custom / Single & Sole Sourced Components • Leverage Division & Corporate Bid Events • Combine Low & Medium Volume NPD Component MB’s into Production Bid Events • Apply NPD Portfolio Process to *VSI’s & Customer Specials • Member of Fluid Control VSI Committee • Identify & Develop Rapid Prototype Sources • Prototype Preferred Supplier List Available on the Supply Chain SharePoint Site • Continued Regular Communication & Early Engagement of CM’s Process Improvements • Expanded Use of Supply Chain SharePointSite for NPD • Portfolio/ VSI / Customer Special Project Files Available for Team Access • Summary Tracking Files / Project Status Slides / Supplier Quotes / 10M’s / Sourcing Reviews/ Events Calendar • Outsource Tactical Processes to GMDC • RFQ, RFQ Follow Up, Project Tracking Sheet Updates • Redesign Semi-Automated Cost Rollup Extract Program – T. Iberer • Extracted Data Used to Feed 10M Forms • Document NPD Purchasing Procedures • Tooling & New Product (First Article) Transactions for Both AS400 & Bann • Request for Quote Process • NPD to Production Transition Process • Engage Trade Compliance in NPD Process • Minimum Requirements Identified – Part Wt, Unit Cost, HTC, COO • Continued Refinement of KPI’s for NPD • Duplicate Florham Park Data Collection & Analysis for Novi *Valve Sales Inquires – Florham Park, Customer Specials - Novi

  7. Opportunities for Improvement • New Product Quote Process for Platform & Customer Specials • Update to Process – New SharePoint Based CRR Tracking Process in Bata Test - June 2010 • Process developed for both Florham Park & Novi • Expand NPD Coverage for Novi & Mount Pleasant • NPD Material Planning Position Required for Novi & Mt Pleasant (Future Resource Consideration) • Clearly defined tactical functions required for NPD Material Planning - Novi • Greater Engagement & Improved Communication w/ Numatics Project Teams • Railroad Cylinder Bore, Crust Breaker – MP Location, no change since FY10 Q1 • Atlas Project – Monthly Visits have greatly improved communication with Project Teams • Recommendation - Cross Department Engagement in Design & Drawing Reviews • Product & Mfg Engineers from both Florham Park & Novi should have greater interaction