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Global SEALs
•Examine “Inside Out”                                         “Passion for Juice”
•Experience “First Hand”
•Due Diligence for the
        “Juice” Edge




                           YOU CAN’T RESEARCH A SUPPLIER IN
                           ASIA FROM A CUBICLE IN THE STATES



                       Goiing tthe Exttra Miile … ffor tthe Juiice!
                       Go ng he Ex ra M le … or he Ju ce!
Global SEALs
                                         “Passion for Juice”




          Global SEALs …
  “Emerging Market” Leadership



     Gllobal Sourrcing Excelllence and Leaderrship
     G obal Sou cing Exce lence and Leade ship
Speed with Certainty

                                          “Passion for Juice”




           Goiing Affter tthe Juiice … Mach 4
           Go ng A ter he Ju ce … Mach 4
Global SEALs

                    SEAL Mission …                 “Passion for Juice”




                       GET JUICE!
                        Every Second
  Controls
                        Every Minute
  Relations
  Speed                  Every Hour
                         Every Day
  Certainty
  Terrain




              Maxiimize tthe Juiice … Miinimize tthe Riisk
              Max mize he Ju ce … M nimize he R sk
CTQ: Local Nationals who …
1.    Speak the language        Global SEALs
2.    Know the culture
3.    Know the region
4.    Regional home
   = 24 x 7 Project Execution




             Latin America
Global SEALs
                                                                                   “Passion for Juice”

   Strategy:

          Offshore / Nearshore
          Blackjack Status
           2 Qualified Offshore sources in 2 different countries
           1 Qualified Nearshore source


                                     Minimum … Double Toothpicks 11


     Beware of Roman Empire, Country Risk, Currency Risk, Supplier Risk, Political Risk


        Riisk Miitigation, IIncrease Leverrage
        R sk M tigation, ncrease Leve age
Cash is King         $


                                                      “Passion for Juice”

    Strategy:
                                                      $


         Cash Flow
         Jugo3 Gold Status
           Increase Payment Terms = 2%/60 net 90
           Lead-Time Reduction = FG @ supplier, US Based WHSE
           Incoterms = DAP Destination Carriage Unpaid




         B o tto m L i n e …

              Conttract DNA … att tthe Sourrce
              Con ract DNA … a he Sou ce
Get Juice Equation …
                                      “Passion for Juice”




  Juice Now + Juice Later =

                   Jugo “360”

     Trust but Verify

     Doublle Team … IIncumbent and Onboarrd
     Doub e Team … ncumbent and Onboa d
Global SEALs – Value Add Menu
                                                                 “Passion for Juice”

    Emerging Market Leadership:
      Terrain Intelligence / Relations (Region / Supplier)
      Supplier Search
      Supplier Selection (Audit, C-TPAT)
      Economics (Region / Supplier … Commercial DNA)
      Qualification / Part Approval
      Production and Productivity (Year over Year Juice)
      Ongoing Inspection and Testing                       Supplier                 Part
      Other … Engineering Services                        Selection                Approval
      3rd Party Lab                                                 Customer
                                                                      Value
      Future … Buying / Planning for NAFTA?
      Blackjack and Jugo3 Strategies                                 On-Going
      New Product (grow top and bottom lines)                        Inspection
                                                                       & Testing



               CTQ … Speed wiith Cerrtainty
               CTQ … Speed w th Ce tainty
Global SEAL DNA
                                                “Passion for Juice”
 • Athlete
    Perseverance … Never Give Up!
 • Cadet
    Leadership … Getting Extraordinary Things Done!
 • FBI
    Investigate, Strategize, and Execute!
 • CIA
    Global Mindset!




      GllobalSourrcingExcelllenceand Leaderrship
      Gobal Sou cing Excelence and Leade ship
Small World …                       “Passion for Juice”




                With Global SEALs
Emerging Markets – Blue Expansion      “Passion for Juice”




Big Six:
 Brazil
 Russia
 India
              LCC         LCP          LC Z
              “country”   “province”    “zone”
 China
 Indonesia
 Mexico
Next Juice Mine is … ?
                                                                                        “Passion for Juice”




  Countries based on World Bank income groupings (calculated by GNI per capita, Atlas method).
  ██ High income
  ██ Upper-middle income
  ██ Lower-middle income
  ██ Low income
Eyes Wide Open …                 “Passion for Juice”




                   JuicEnomics
JuicEnomics

                                         “Passion for Juice”




                The “Juice”
              Process and Flow




                 Speed wiithCerrtainty
                 Speed wth Ce tainty
VMR

                                             “Passion for Juice”

  The Global SEAL Organization is focused on establishing
  an Emerging Market Supply Base that will provide the
  Firm an advantage over the competition. The
  foundation of the strategy requires identification of
  suppliers who can consistently meet the Firm’s
  stringent quality requirements. The identification of
  quality suppliers based up on a defined process used
  throughout the Global SEALs Emerging Market Supply
  Chain.




              VallueManaged Rellationship
              Vaue Managed Reationship
Supplier Snap Shot
                                                           “Passion for Juice”
     What does a Supplier ‘look like’ that can give the
     Firm a competitive advantage?

      •   Ability to meet or exceed product specification requirements
      •   Manufacturing processes capable of Best In Class quality -
          Driving toward a 6 sigma capability - 1.33 Cpk.
      •   Low cost producer on a world scale
      •   Manufacturing process flows designed for Best In Class lead
          times
      •   Leader in technology, keeps the Firm at the front of the
          technology curve
      •   Continuous Productivity Improvement

                    VallueManaged Rellationship
                    Vaue Managed Reationship
Keys to Engagement – Foundation for Success
                                                                                          “Passion for Juice”
 Developed an Internal Sourcing Team for each       Here is an RFQ … Go … NO
 product / project
   • Quality Assurance Manager                                    Professional Sourcing Team
                                                                      Sourcing - Engineering
   • FBI / Global Sourcing Manager/Black Belt (US                            Quality
     Based)
   • Engineer
   • Operations Manager
   • CIA / Sourcing Quality Engineer/ Black Belt
                                                                    Engineering & Quality
     (Local National)
                                                                     Sourcing & Manufacturing

 The Criteria for the team members:
   • Manufacturing knowledge of the product
   • Sourcing knowledge of the country                              Product Knowledge
   • 6 Sigma Controls in Tracking, Repeatability,                            &
     Quality, and Execution                                       Manufacturing Know How
   • Producibility Controls (CTQ)
   • Quality Control Process Mapping                                 Bomb Pop Modeling
   • The Supplier Qualification and Producibility
     Controls are the most critical to success.




                          GllobalReach … KnowlledgeRiich
                          Gobal Reach … Knowedge Rch
CTQ … Selection

                               GLOBAL SEAL TEAM                   “Passion for Juice”

                  EVALUATION CRITERIA


  TOTAL SYSTEMS                                                     PARTNERSHIP
  COST                                                              COMMITMENT
                  TECHNICAL                        FINANCIAL
  * Process       CAPABILITY                       STRATEGIC        * Management
  * Material                    PERFORMANCE        POSITION           Quality
  * Development   * Process     HISTORY                             * Information
  * Quality       * Material                       * Stability        Sharing
  * Inventory     * Design      * Quality          * Industry       * Investment
                  * Test        * Delivery           Reputation     * Productivity
                  *R&D          * Responsiveness                      Improvement
                  * Support     * Warranty                            Plan




          PrrocessActtivityDeffinitions -- 6 SiigmaQuallity
          P ocess Ac ivity De initions     6 Sgma Quaity
Global Controls for Risk Mitigation
                                                                    “Passion for Juice”
•   Supplier Selection                •   Part Approval - (Producibility)
    •Supplier Survey                       •Tooling Qualification
    •On-Site Supplier Audit                •Measurement Systems Analysis
    •C-TPAT Security Audit                 •Capability Analysis
    •In Country SEAL Resources             •Inspection & Test Plans
    •Detailed RFQ’s                        •Performance Criteria
    •E-Sourcing                            •Life Test & Certifications


                                      6 SIGMA CONTROL … OVERVIEW
•   On-Going Inspection &             •   White Paper – Supplier Selection / On Site
                                          Audit
    Testing                           •   Manufacturing Process – Survey: Casting,
                                          Forging, etc.
    •Shared I&T Plans
                                      •   Producibility Controls – (CTQ in process)
    •Incoming Inspection              •   Capability Analysis (CPK of 1.33 required)
    •Regular Performance Testing      •   Life Test and Certification
    •Supplier Product Certification   •   Product Failure Modes and Effects Analysis
                                      •   Quality Control Plan
    •Material Certification           •   Project Monitoring Tools

               6 SiigmaConttrolsiinTrrackingand Executtion
               6 Sgma Con rols n T acking and Execu ion
6 Sigma Process Controls = Customer Value
                                                            “Passion for Juice”

                                       6 SIGMA CONTROL … OVERVIEW
                                       • White Paper – Supplier Selection /
                                         On Site Audit
                                       • Manufacturing Process – Survey:
  Supplier                    Part       Casting, Forging, etc.
  Selection                 Approval   • Producibility Controls – (CTQ in Part
                                         Approval Process)
              Customer                 • Capability Analysis (CPK of 1.33
               Value                     required)
                                       • Life Test and Certification
                                       • Product Failure Modes and Effects
                                         Analysis
               On-Going                • Quality Control Plan
               Inspection              • Project Monitoring Tools – (On-
               & Testing                 Going I & T)


                        PrrotectingCusttomerVallue
                        P otecting Cus omer Vaue
CTQ … for the Present and Future
                                                 “Passion for Juice”




   Companies do not compete …

             Supply Chains do!



           ForrViictory… 1 + 1 = 3 and 1 + 1 = 1..5
           Fo Vctory … 1 + 1 = 3 and 1 + 1 = 15

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Global SEAL Pitch

  • 1. Global SEALs •Examine “Inside Out” “Passion for Juice” •Experience “First Hand” •Due Diligence for the “Juice” Edge YOU CAN’T RESEARCH A SUPPLIER IN ASIA FROM A CUBICLE IN THE STATES Goiing tthe Exttra Miile … ffor tthe Juiice! Go ng he Ex ra M le … or he Ju ce!
  • 2. Global SEALs “Passion for Juice” Global SEALs … “Emerging Market” Leadership Gllobal Sourrcing Excelllence and Leaderrship G obal Sou cing Exce lence and Leade ship
  • 3. Speed with Certainty “Passion for Juice” Goiing Affter tthe Juiice … Mach 4 Go ng A ter he Ju ce … Mach 4
  • 4. Global SEALs SEAL Mission … “Passion for Juice” GET JUICE! Every Second Controls Every Minute Relations Speed Every Hour Every Day Certainty Terrain Maxiimize tthe Juiice … Miinimize tthe Riisk Max mize he Ju ce … M nimize he R sk
  • 5. CTQ: Local Nationals who … 1. Speak the language Global SEALs 2. Know the culture 3. Know the region 4. Regional home = 24 x 7 Project Execution Latin America
  • 6. Global SEALs “Passion for Juice” Strategy: Offshore / Nearshore Blackjack Status  2 Qualified Offshore sources in 2 different countries  1 Qualified Nearshore source Minimum … Double Toothpicks 11 Beware of Roman Empire, Country Risk, Currency Risk, Supplier Risk, Political Risk Riisk Miitigation, IIncrease Leverrage R sk M tigation, ncrease Leve age
  • 7. Cash is King $ “Passion for Juice” Strategy: $ Cash Flow Jugo3 Gold Status Increase Payment Terms = 2%/60 net 90 Lead-Time Reduction = FG @ supplier, US Based WHSE Incoterms = DAP Destination Carriage Unpaid B o tto m L i n e … Conttract DNA … att tthe Sourrce Con ract DNA … a he Sou ce
  • 8. Get Juice Equation … “Passion for Juice” Juice Now + Juice Later = Jugo “360” Trust but Verify Doublle Team … IIncumbent and Onboarrd Doub e Team … ncumbent and Onboa d
  • 9. Global SEALs – Value Add Menu “Passion for Juice” Emerging Market Leadership: Terrain Intelligence / Relations (Region / Supplier) Supplier Search Supplier Selection (Audit, C-TPAT) Economics (Region / Supplier … Commercial DNA) Qualification / Part Approval Production and Productivity (Year over Year Juice) Ongoing Inspection and Testing Supplier Part Other … Engineering Services Selection Approval 3rd Party Lab Customer Value Future … Buying / Planning for NAFTA? Blackjack and Jugo3 Strategies On-Going New Product (grow top and bottom lines) Inspection & Testing CTQ … Speed wiith Cerrtainty CTQ … Speed w th Ce tainty
  • 10. Global SEAL DNA “Passion for Juice” • Athlete  Perseverance … Never Give Up! • Cadet  Leadership … Getting Extraordinary Things Done! • FBI  Investigate, Strategize, and Execute! • CIA  Global Mindset! GllobalSourrcingExcelllenceand Leaderrship Gobal Sou cing Excelence and Leade ship
  • 11. Small World … “Passion for Juice” With Global SEALs
  • 12. Emerging Markets – Blue Expansion “Passion for Juice” Big Six:  Brazil  Russia  India LCC LCP LC Z “country” “province” “zone”  China  Indonesia  Mexico
  • 13. Next Juice Mine is … ? “Passion for Juice” Countries based on World Bank income groupings (calculated by GNI per capita, Atlas method). ██ High income ██ Upper-middle income ██ Lower-middle income ██ Low income
  • 14. Eyes Wide Open … “Passion for Juice” JuicEnomics
  • 15. JuicEnomics “Passion for Juice” The “Juice” Process and Flow Speed wiithCerrtainty Speed wth Ce tainty
  • 16. VMR “Passion for Juice” The Global SEAL Organization is focused on establishing an Emerging Market Supply Base that will provide the Firm an advantage over the competition. The foundation of the strategy requires identification of suppliers who can consistently meet the Firm’s stringent quality requirements. The identification of quality suppliers based up on a defined process used throughout the Global SEALs Emerging Market Supply Chain. VallueManaged Rellationship Vaue Managed Reationship
  • 17. Supplier Snap Shot “Passion for Juice” What does a Supplier ‘look like’ that can give the Firm a competitive advantage? • Ability to meet or exceed product specification requirements • Manufacturing processes capable of Best In Class quality - Driving toward a 6 sigma capability - 1.33 Cpk. • Low cost producer on a world scale • Manufacturing process flows designed for Best In Class lead times • Leader in technology, keeps the Firm at the front of the technology curve • Continuous Productivity Improvement VallueManaged Rellationship Vaue Managed Reationship
  • 18. Keys to Engagement – Foundation for Success “Passion for Juice” Developed an Internal Sourcing Team for each Here is an RFQ … Go … NO product / project • Quality Assurance Manager Professional Sourcing Team Sourcing - Engineering • FBI / Global Sourcing Manager/Black Belt (US Quality Based) • Engineer • Operations Manager • CIA / Sourcing Quality Engineer/ Black Belt Engineering & Quality (Local National) Sourcing & Manufacturing The Criteria for the team members: • Manufacturing knowledge of the product • Sourcing knowledge of the country Product Knowledge • 6 Sigma Controls in Tracking, Repeatability, & Quality, and Execution Manufacturing Know How • Producibility Controls (CTQ) • Quality Control Process Mapping Bomb Pop Modeling • The Supplier Qualification and Producibility Controls are the most critical to success. GllobalReach … KnowlledgeRiich Gobal Reach … Knowedge Rch
  • 19. CTQ … Selection GLOBAL SEAL TEAM “Passion for Juice” EVALUATION CRITERIA TOTAL SYSTEMS PARTNERSHIP COST COMMITMENT TECHNICAL FINANCIAL * Process CAPABILITY STRATEGIC * Management * Material PERFORMANCE POSITION Quality * Development * Process HISTORY * Information * Quality * Material * Stability Sharing * Inventory * Design * Quality * Industry * Investment * Test * Delivery Reputation * Productivity *R&D * Responsiveness Improvement * Support * Warranty Plan PrrocessActtivityDeffinitions -- 6 SiigmaQuallity P ocess Ac ivity De initions 6 Sgma Quaity
  • 20. Global Controls for Risk Mitigation “Passion for Juice” • Supplier Selection • Part Approval - (Producibility) •Supplier Survey •Tooling Qualification •On-Site Supplier Audit •Measurement Systems Analysis •C-TPAT Security Audit •Capability Analysis •In Country SEAL Resources •Inspection & Test Plans •Detailed RFQ’s •Performance Criteria •E-Sourcing •Life Test & Certifications 6 SIGMA CONTROL … OVERVIEW • On-Going Inspection & • White Paper – Supplier Selection / On Site Audit Testing • Manufacturing Process – Survey: Casting, Forging, etc. •Shared I&T Plans • Producibility Controls – (CTQ in process) •Incoming Inspection • Capability Analysis (CPK of 1.33 required) •Regular Performance Testing • Life Test and Certification •Supplier Product Certification • Product Failure Modes and Effects Analysis • Quality Control Plan •Material Certification • Project Monitoring Tools 6 SiigmaConttrolsiinTrrackingand Executtion 6 Sgma Con rols n T acking and Execu ion
  • 21. 6 Sigma Process Controls = Customer Value “Passion for Juice” 6 SIGMA CONTROL … OVERVIEW • White Paper – Supplier Selection / On Site Audit • Manufacturing Process – Survey: Supplier Part Casting, Forging, etc. Selection Approval • Producibility Controls – (CTQ in Part Approval Process) Customer • Capability Analysis (CPK of 1.33 Value required) • Life Test and Certification • Product Failure Modes and Effects Analysis On-Going • Quality Control Plan Inspection • Project Monitoring Tools – (On- & Testing Going I & T) PrrotectingCusttomerVallue P otecting Cus omer Vaue
  • 22. CTQ … for the Present and Future “Passion for Juice” Companies do not compete … Supply Chains do! ForrViictory… 1 + 1 = 3 and 1 + 1 = 1..5 Fo Vctory … 1 + 1 = 3 and 1 + 1 = 15