For American Foundry Society December 7, 2010

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1 For American Foundry Society December 7, 2010

2 CONTENTS APEX OVERVIEW APEX FUTURE-CUSTOMER DEFINED TRENDS WE SEE IMPLICATIONS FOR YOU Q & A

3 Who is Apex? Contract Manufacturer Precision machined metal parts Some assembly work Low to mid volume repetitive niche Typical volumes of 4-100/day on 150 part numbers 100% CNC ISO and

4 BRIEF HISTORY Founded Aerospace/Allison Engine/Grew with additional customers Transition away from aerospace First TIEM (Toyota Forklift) Business ISO 9001 Certification Move to new facility Sales at $7M ISO Certified OPW Supplier of the Year/First work with ArvinMeritor Sales at $21M First work with MCFA Toyota Forklift Outstanding Supplier Award for Sales at $26.2 M Named one of America s fastest growing companies by INC. Magazine Hendricks County (IN) Outstanding Economic Development Award/ITAR registered Toyota Forklift Outstanding Supplier Award

5 OUR VISION Develop large partnerships with a limited number of top tier, well managed companies (customers and suppliers) as our business base Customer satisfaction is the real bottom line-quality products, just in time, outstanding value Continue training and development of our workforce Invest in common platform CNC equipment Get leaner-reduce the seven deadly wastes (muda) Grow with the customers you know, add new customers carefully

6 SOME OF OUR CURRENT CUSTOMERS TIEM (Toyota Forklift) ArvinMeritor Axletech Dana/Metalsa Mitsubishi Caterpillar Forklift America Ingersoll-Rand OPW Grede/Brillion/Waupaca

7 Resources - Suppliers Cast Iron Waupaca Brillion Grede Dalton Aarrowcast Neenah American Farrar Quality Progressive Aluminum Eck Ryobi Bodine Bar Future Metals Jorgensen Forgings Clifford Jacobs Portland Dekalb

8 RESOURCES - EQUIPMENT All production equipment is CNC Common brand/common controls -Okuma lathes -Makino and Okuma machining centers Operator PM program + scheduled maintenance department activities Large percentage of new equipment Flexibility allows two day kanban to TIEM

9 RESOURCES - EQUIPMENT, CONT. CNC Machining Centers-18 CNC Lathes Horizontal - 11 horizontal -3 Vertical -1 Vertical -1 Five axis Mill-Turn-1 Quality Lab - 3 Coordinate Measuring Machines - Gage tracking system - 95% inside calibrations

10 A81 Makino Line

11 Okuma Multus400 Mill Turn

12 Apex Produced Forklift Parts

13 Apex Produced Forklift Parts

14 Apex Produced Forklift Parts

15 Differential Carrier 15

16 COVER

17 FRONT DRIVE AXLE & DIFFERENTIAL HOUSING

18 FORKLIFT AXLE HOUSING & BRAKE DRUM

19 Suspension Arm

20 OUR LEAN APPROACH GOAL-To eliminate the seven deadly wastes (ref: Ohno) by: 1. Knowing our customers and what they need/want 2. Engaging people to improve 3. Mapping all steps of existing processes 4. Eliminating waste 5. Arranging work for flow and then pull 6. Creating stability 7. Kaizen over and over

21 Today s Requirements Start with the end in mind-what do my customers need/want/demand? PPM less than 36 Two-day kanban to weekly deliveries Annual cost down (2-5% of Apex VA) Minimum lead time on new programs A partner

22 Trends Apex Sees Higher strength materials ADI A206-T7 Much shorter lead times More foundries as Tier 1 / Apex as Tier 2 Integrated, customer controlled logistics

23 What does Apex need? Foundry Partners Creative ways to reduce costs Foundry performance at same level as Apex customers expectations If your are Tier 1, understand the requirements

24 Partners Preferred foundries Understood commercial relationship Understand my customer too DFM Lean Sensible lot sizes

25 Creative cost reductions-examples Paint Flash removal by Apex Reduced stock removal Cored vs drilled holes Alternate material grades Smaller lot sizes DFM team Logistics

26 Foundry Performance Quest for perfection has not stopped I will not easily catch all your errors You are 60+% of my selling price This will accelerate move to Tier 1 We cannot afford to carry excess inventory Understand on time delivery requirements Zero days early/zero days late (It is to the hour for Apex with Toyota) Quantity ordered-not +/- x% Standard containers/standard quantities

27 Foundry as Tier 1 Understand the requirements You are the customer interface You own PPAP I need forecasts and schedules (not unexpected parts on my dock)

28 Summary Exciting times Need to partner to help each other Future starts with customer understanding Grows with how can we satisfy their needs not this is the way we have always done it Hope what I have shared helps you be more successful

29 Jerry Jackson, President Bob Benton, VP Sales Dan Seacat, Engrg. Manager Bryson Ocker, Ops Manager Jim Kluemper, Purch./Logistics Mgr Keith Flowers, Quality Manager Jill Vietor, HR Manager Gloria Liebig, Controller Jeremy Thomas, Cont. Impr. Coord Come visit us and see where customer satisfaction is created.