Mike Wagner’s approach for
business improvement
Michael Wagner
April 18, 2009

Approach to business improvement - tenets
1. Focus on business growth &
improvement
2. Systems’ approach for business
improvements
3. Use creativity & strategic insights to
expand possibilities
Michael Wagner – General Management / Sales Management

1. Focus on business growth & improvement –
Everything starts with the people
In the right seats -
1. Create clear expectations
Hire talented
2. Equipped for success
people
3. Allow them to do what they
can do best
Builds a great team -
4. Recognize their good work
5. Show them respect & interest
6. Encourage their growth & development
If done correctly, the rest is easy …
Michael Wagner – General Management / Sales Management

1. Focus on business growth & improvement –
80/20 Understanding
 Gain insight to
business by
categorizing by:
2002 Cumulative Revenue M.A.N. over Number of
 Customers
Customers (sorted high to low revenue customer)
 Products
$20.000.000
 Markets
2002 Revenue
$15.000.000
 Understand business
$10.000.000
potential of each
$5.000.000
segment
$0
1001
1251
1376
1501
1626
1751
1876
126
251
376
501
626
751
876
 Insight about
1126
1
business strengths
# of Customers
makes strategy
development and
deployment easier
Michael Wagner – General Management / Sales Management

1. Focus on business growth & improvement –
Align Individuals’ Goals with Customer Expectations
Service Response within 24 hours
100% 100%
100% 24 hour
100%
response
Goal 95%
86% 86%
80%
80%
Percentage of Requests
67%
60%
40%
20%
0% 0% 0%
0% 0%
0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Michael Wagner – General Management / Sales Management

2. Systems’ approach governing all actions –
Finding/Solving Root Cause
OEM Aftermarket Improvement - Mechanical/Hydraulic
Cylind Filt Valves Pum ps Lin
a. Develop Spare Parts SOM er er kag
Other
e
b. Estimate business
potential of installed base
Offer repaired
c. Create/implement hydraulic pumps
countermeasure & valves
- Add 3 KAMs
Electrical
Offer repaired - Develop
Oth Control Positio Displa
er Boards ning ys
OP398 interface
effectiveness report
& S5 PLC comp.
- Add out-bound
telemarketers
Offer relined
barrels & low
cost NRVs
Plasticizing
Other Hea NRV Screw s Barrels
t
Offer CPM9V
screws
Michael Wagner – General Management / Sales Management

2. Systems’ approach governing all actions –
LEAN Thinking
Kaizen Event Results - October 8 - 12, 2007
Lean Metric Before After Goal Improvement %
Same Day Shipment of Stock Parts 20% 90% 95% 350%
Walking by Sales Personnel - Distance 1.68 miles 0.4 mi 0.5 miles 1.28 miles 98%
Walking by Sales Personnel - Time 91 minutes 25 min. 25 min. 66 minutes 72%
Purchasing Routing Errors - Customer
Service 75 days 3 3 days 72 Days 96%
Purchasing Routing Errors - Receiving 15 days 3 3 days 12 Days 80%
Returned Material Process Delays 116 days 3 3 days 113 Days 97%
Michael Wagner – General Management / Sales Management

2. Systems’ approach governing all actions –
Consultative Selling
Existing System - Dryers on each injection molding machine
Proposal - Central Material Handling System feeding 14 I/M machines
Project Cost - $295,000 including installation
Operational Savings - Central System savings compared to existing case:
Per Year
Productivity Savings $280,000
Labor Savings-Mat'l Handling $34,000
Energy Savings $11,950
Value of floor space $9,500
Maintenance $1,750
Material Losses $7,400
Annual Operating Savings $344,600
Payback (in months) 10.3
Michael Wagner – General Management / Sales Management

3. Use creativity & strategic insights to expand possibilities –
Seek out market discontinuities
POTENTIAL ENTRANTS
As Tire Uniformity Test
Equipment can provide
a useful life of 30 years, … a competitor
a machine rebuilding service emerges
was offered to both satisfy
the customer need and
INDUSTRY COMPETITORS
block future competitors.
SUPPLIERS BUYERS
Rivalry Among
Existing Firms
If this door is
left open …
SUBSTITUTES
Michael Wagner – General Management / Sales Management

3. Use creativity & strategic insights to expand possibilities –
New Product Development
1. Portable dryer must build upon system reputation
2. Must have short lead time
3. Must be configurable by Sales Reps
4. Must have excellent Quality & Reliability
FlexSide System Quick Quote - Application and Specification Guide Prepared For
FS Models page 1
Contact
Bin #1 0 lb bin Bin #2 0 lb bin Bin #3 0 lb bin
0 #### 0 #### 0 ####
Location
material name material name material name
#N/A #N/A #N/A
residence time residence time residence time
(rec) (rec) (rec)
Telephone
residence time hours residence time hours residence time hours
0 0 0
lbs/hr required lbs/hr required lbs/hr required
1 1 1
Dryer 0 regrind percent Date
No Regrind Used No Regrind Used No Regrind Used
regrind percent regrind percent
Prepared
application notes application notes application notes
By
drying temp drying temp drying temp
Dryer Size degrees F degrees F degrees F click below to go to section
Recommended Help Dwg Ref
Note: Sections in blue are for user data entry. Please specify application by specifying material and usage.
Bin Option Pack, Bin#1
Bin Option Pack, Bin#2
Bin Option Pack, Bin#3
Suction Box Type, Bin
Suction Box Type, Bin
Suction Box Type, Bin
Mach Ldr 1 Options
Mach Ldr 2 Options
Mach Ldr 1 Options
Mach Ldr 2 Options
Machine Loader #1
Machine Loader #2
Drying Bin Three
Drying Bin One
Drying Bin Two
Loader, Bin#1
Loader, Bin#2
Loader, Bin#3
Dryer Voltage
Dryer Option
Dryer Size
# of Bins
#1
#2
#3
| | | | | | | | | | | | | | | | | | | | | |
40
20 20 20 DC RA RA
Choices 3 12 10 10 10 D 2 2 2 V V V 6 6 SM SM A A
2 8 6 6 6 4 C H H H 1 1 1 M M M to to S S R R
X
1 5 3 3 3 2 L L L 0 0 0 X X X 0 0 X X X X
0 X X X - - X X - 0 0 - X X - - X X - X X
Recommended
FS - - - - - - - -
smart part #
Caution: Your drying selections do not match recommendations. Please review. Upsizing of components is acceptable if overdrying is not an issue
#N/A
For VL Loaders For VL Loaders
0 = No Loader
0 = No Loader
2 = 240 / 3 / 60
Only: Only:
1 = HL Loader
1 = HL Loader
4 = 480 / 3 / 60
X = No Options X = No Options (or
2 = HLP Loader
2 = HLP Loader
5 = Luxor 50 Dryer L = Loader Fill (or HL/ML Loaders HL/ML Loaders
3 = ML Loader
8 = Luxor 80 Dryer used) used)
4 = MLP Loader
X = No Bin
C = 7 day Clock Only
12 = Luxor 120 Dryer H = Hand Fill Cover S = Include R = Remote Filter
5 = VL1 Loader
3 = 30 lb Drying Bin X = None, Manual Drain
D = Dewpoint Monitor Only
(standard on 30 lb Drying Sightglass A = Out of Material
6 = VL2 Loader
6 = 60 lb Drying Bin M = Manual Suction Box
DC = Both Clock and
Bin, Optional on others) SM = Include Alarm
10 = 100 lb Drying Bin (1.5\"OD outlet, no purge)
Dewpoint Monitor
Sightglass and RA = Both Remote
20 = 200 lb Drying Bin V = VL Loader Suction Box
X = Does Not Apply (no Bin Bullet Magnet Filter and Out of
40 = 400 lb Drying Bin
in this position) Material Alarm
Finished Smart Part Number: FS-------- Quick Quote Notes:
Short Reference: FS--
Configuration Reference: FS
Michael Wagner – General Management / Sales Management

3. Use creativity & strategic insights to expand possibilities –
Business Development
Core Processes; Culture; Organizational Structure; Management Systems
DPG Key Account Program
Conversion Process:
Assets; Phase II
Phase I Phase III Phase IV
Inputs;
Reactivated
Spent Raw Materials Clean -Up Capture Productivity Partnership
• Machine issues • Parts/Retro • Retro - cycle time • Inventory
improvements Management
• Communications • Business from
• Efficiency of • DPG personnel
competitors
purchasing on staff at
customer location
• Uptime Planning
• P.M. Programs
Governing Process:
Value Capture:
Products;
Solutions;
Services;
Removed Returned Financing
& returned to use
Value Delivery:
Segregated acid-washed carbon Direct Sales;
for reactivation as a non-food grade Indirect Sales Channels;
OEM agreements
carbon for mineral sensitive
applications.
Utilize DPG sales channel and
Realized higher market price. customer mandate for enhanced
Capitalized on existing assets & productivity to develop business
capabilities. partnerships and enhance DPG
Customer
sales revenue.
Michael Wagner – General Management / Sales Management