www.survitecgroup.com

• Owned by Warburg Pincus a Private Equity House.

• $400m revenue, 2000 employees, 45 locations, headquartered in

Southampton UK.

• A track record of managing safety and compliance for over 10,000

customers worldwide.

• Largest service station network – Covering 2000 ports worldwide.

• Market Leader in global Marine life raft and Aerospace & Defence Survival.

• World famous brands.

• 160 years of innovation and market firsts.

Marine . Offshore . Defence . Aviation

World Leader in Critical Safety and Survival Solutions

• Marine and Aerospace - Commercial and Military

Our Local Business...

And our customers...

How we work...

Global Spares

...a Full Life Cycle business

Design and Approval

Manufacture and Certify

Installation Service and Distribution

Products that work when all else fails…

• Customer service poor

• Cost base too high

• Poor supplier performance

• Market increasingly competitive

• Traditional work force

• No perceived need for improvement

• Inappropriate incentive schemes

• Institutionalised overtime

• No significant change in 40 years

• Inventory spiraling upwards

• Inflexible people and processes

• Request for more space for growth

Impact on Key Metrics

The Facts

• Turnover £32m

• OTD 56%

• Supplier OTD 38%

• First Pass Yield 80%

• Productivity 66%

• High Inventory 3 turns

• Environmental 25T VOCs pa

Need for rapid

integrated focused

improvement...

Our Improvement Strategy

2009 - Organised Chaos...

Spare

s Ce

ll

Aerospace Cell Marin-ark Cell

Single

Seat C

ell

Lifejacket C

ell

Marin-ark Cell

Cutting/Marking Marine

Welding

Life

jac

ke

ts

S/Seat

Welding

Aerospace

Assembly

Marin-Ark

Pre-test

Se

win

g

Pre

-Se

lect Surviva Mk4

Testing

S/Seat

Assembly

Ae

ros

pac

e

Pa

ck

ing

Marine Packing

Marin-Ark

Packing

Surviva Mk4

Testing

Marin-Ark

Assembly

Ma

rin-a

rk

We

ldin

g

Aerospace &

Marine Assembly

Rented

building

500+m

Layout and management aligned to Value

Streams...

Spare

s Ce

ll

Aerospace Cell Marin-ark Cell

Single

Seat C

ell

Lifejacket C

ell

Marin-ark Cell

Ma

rine

Ce

ll

Life

jac

ke

t Ce

ll

Sp

are

s C

ell

Sin

gle

Se

at C

ell

Aerospace Cell Marin-Ark Cell Marine

Operational

Packing

Cell

Cutting / Marking Cutting / Marking

Training

Room

100m

Marin-Ark

Assembly

Rented

building

• Created a site vision

• Removed the piece work bonus system

• Created a site scorecard

• Developed a performance management system

Empowered and Aligned employees

at all levels...

• Employee development program

• Employee forum

• Kaizen teams

• Community engagement program

Empowered and Aligned employees at all levels...

• Daily communication

• Problems solved using data not opinion

• Continuous improvement now part of daily work

Empowered and Aligned employees at all levels...

Developing a Leadership Capability

www.survitecgroup.com

The purpose of the programme was to

develop management to create a

leadership capability to deliver our

vision

Survitec Group Vision

To be the World Leader

in Critical Safety and Survival

Solutions for the Marine, Offshore,

Defence and Aviation markets

18

Site Vision Exceed customer expectations through

continuous improvement, ownership and teamwork

Leadership Strategy Aligning Management and Leadership,

Developing Capability and Culture to achieve the Vision

Drivers Lean Journey, Site Scorecard

Emphasising The Need for

Leadership, Continuous Improvement, Ownership, Teamwork

Survitec Management Capabilities Customer Focus; Communicating Vision and Purpose; Priority Setting;

Problem Solving; Composure; Continuous Improvement;

Directing Others and Developing Direct Reports

Alignment - Group Vision to Site Capability

Marine . Offshore . Defence . Aviation

• Develop Leadership and Middle Management capability

align the leadership culture to achieving our vision.

• Increase ownership for managing performance

empower all levels of management, create a sense of

purpose.

• Work collaboratively

improve team working within and across departments.

• Support the implementation of continuous improvement

initiatives

achieve engagement across all business functions.

Programme Objectives

Marine . Offshore . Defence . Aviation www.survitecgroup.com

Creating A Leadership Brand & Style

• Motivated

• Engaged

• Caring

• Supportive

• Coaching

Honesty

Integrity

Respect

Can Do Attitude!!

No Blame Culture!!

Sales and Operations Planning

Sales & Marketing

Go to Market

New Product

Introduction

Operational

Excellence

Customer

Intimacy - CRM

Programme

Management Lean

Deployment

Systems Supporting the Business

Strategy

Sales and Operations Planning

Sales & Marketing

Go to Market

New Product

Introduction

Operational

Excellence

Customer

Intimacy - CRM

Programme

Management Lean

Deployment

Systems Supporting the Business

Strategy

Policy Deployment Sales & Ops

Salesforce.com R&D Gateway

Sales and Operations Planning

Site Champions Sustaining the

Systems

• 6S – Weekly audits on the shop floor & offices

Fortnightly report out to Senior Management Team with key

actions identified

• 5Y – Multi functional teams work to establish root causes of

problems

All 5Y activities are recorded and progress monitored

through to completion

• Health & Safety – Discussed daily at each value stream.

Fortnightly report out to Senior Management Team with key

actions identified

Customer • Radical on time delivery: 56% to 95%

• Quality (first pass yield): 80% to 98%

• Lead times: Aerospace 26 weeks to 8 weeks

Marine 8 weeks to 2 weeks

Operational & Environmental • Productivity: 66% to 76%

• Supplier on time delivery: 38% to 98%

• Inventory: 3 turns to 8 turns

• Environmental: 25T VOCs to 5T VOCs

• Floor space: 19% reduction

Financial • Turnover: increased 27%

• Export sales: increased 34%

• Profitability doubled in 2 years

Growth in the face of economic turbulence...

Customer • Radical on time delivery: 56% to 95%

• Quality (first pass yield): 80% to 98%

• Lead times: Aerospace 26 weeks to 8 weeks

Marine 8 weeks to 2 weeks

Operational & Environmental • Productivity: 66% to 76%

• Supplier on time delivery: 38% to 98%

• Inventory: 3 turns to 8 turns

• Environmental: 25T VOCs to 5T VOCs

• Floor space: 19% reduction

Financial • Turnover: increased 27%

• Export sales: increased 34%

• Profitability doubled in 2 years

Growth in the face of economic turbulence...

Closed after 19 years Saving £125K pa

Activities & Achievements

Operational

• UK Manufacturing Excellence Award for Most

Improved Company

• Royal Visit

• AS9100 Rev C Approval

Employee & Community

• Business in the Community Partnership

• Work Experience Support

• Charitable Events

Environmental

• 36 % Gas Reduction

• 8% Electricity Reduction

• 50% Landfill Reductio

• Develop leading hands through Excel

program

• Middle managers projects

• Develop sales growth strategy

• Create sales forecasting policy and align

inventory management system

Next Objectives

• Radical transformation in 3 years

• Fully aligned our team to the needs of our

customer

• Customers feeling the benefits every day

• Grown our market share and doubled profitability

• Created a clear vision of the future

• Enhanced our community

• Reducing the impact on our environment

In Summary

ORDINARY PEOPLE...

ACHIEVING EXTRAORDINARY

RESULTS.