1. American Manufacturing Strategies
Summit
Santa Ana, California
“Deploying Operational Excellence Across All Aspects Of A
Global Operating System ”
Bob Richards
Vice President, Operations
November 17-18, 2015

2. Bob Richards
Career History
 Vice President Operations
 Global Director Operational Excellence
 Director Enterprise Lean-Sigma
 Business Entrepreneur
 Plant Manager

3. Keynote Objective
“Deploying Operational Excellence Across All Aspects
Of A Global Operating System ”

4. Kennametal
• Headquartered in Pittsburgh, Pennsylvania
• Seven Engineering Centers
• 72 Manufacturing Locations on 5 continents
• 13,000 employees, 13 languages
• Customers in over 60 countries
Bedford, PA
Latrobe, PA
Fürth/Essen,
Germany
Rogers, AR
Bangalore,
India
Shlomi,
Israel
Tianjin, China
Johnson, City,
TN

5. Kennametal At A Glance
~ $3.0 Billion
80,000 +
13,000 +
1,700 +
40%
60 +
<3%
2014 Revenues
Active Customers
Employees
Patents
% Revenues From Products < 5 years
Global Countries
Largest Single Customer
… Serving some of the World’s Largest Companies

6. Product: Tungsten Carbide Cutting Tools
Structure: Vertically Integrated
Applications

7. Global Operating System – The Why!
“How we do our work!”
Site Assessments
Gap Analysis
• Drives Standard Approach
• Validates Operating System
• Utilize Operating System
Better Practice Sharing
Process Improvement
Work Plans
• Common Solutions
• Standard Processes
 Zero Complaints
 Scorecard Improvement
 Frequent Feedback
 Preferred Supplier Status
GROWTH
Aligned
Customer & Internal
Scorecards

8. Categories:
100% Safe
100% Customer Satisfaction
100% Quality
100% On Time Delivery
100% Employee Engagement
100% Environmental Sustainment
100% Financial Performance
100% Continuous Improvement
Challenge: Deploy a Standard Manufacturing Operating System
with focused attention on the customer!

9. Bronze
Silver
Gold
World Class
Current
Baseline FY14
Future
State
Categories:
Global Champions
100% Safe – Miller
100% Customer Satisfaction – Pantano
100% Quality – Quabeck
100% On Time Delivery – Sylvester
100% Employee Engagement – Bentley
100% Environmental Sustainment – Miller
100% Financial Performance – Buettner
100% Continuous Improvement – Bird
Executive Champion – Richards
Global Operating System – Categories & Levels

10. Our Path Forward
2014-16 2016-17 2017-18 2018-Forward
Crafting our systems to support business growth
Customer Satisfaction
Quality
On-Time Delivery
EHS
Employee Engagement
Finance
Continuous Improvement
Bronze Silver Gold World Class
Fundamental
Processes in
Place
Effective Execution
Manufacturing
Operating System
Processes
Effective
Execution
Throughout
Kennametal Value
Stream
Flawless
Closed-Loop End-To-
End Execution with
Kennametal Customers
Categories

11. Plant Level Metrics by Category
Monthly
Compliance
Output Metrics
Scorecard for all
Categories
Plant Level Heat Map allows detailed drilldown problem solving.
Category Goals:
100% Safe
100% Customer Satisfaction
100% Quality
100% On Time Delivery
100% Employee Engagement
100% Environmental Sustainment
100% Financial Performance
100% Continuous Improvement

12. Conduct
Assessment
GAP Analysis
GAP Closure
Plan
Work Plan
Transformation
Projects
World Class Journey
Utilizing Continuous Improvement Tools
 Establish Baseline
 Determine which core Business
Processes are being followed
 Identify GAPs
 Identify processes that
are missing or not being
utilized
 Develop prioritized action
plan to close GAPs
 Plan ensures GAPs will be
closed
 Develop implementation plan
to close GAPs
 Ensure sustained gains
 Conduct projects
within each element;
ensure intent of
criteria met
 Establishes stable
processes, global
consistency and a
solid foundation for
growth
Systematic Continuous Improvement approach
PDCA

13. Global Operating System Timeline
January FY13
• Developed ISCL K100
Operating System
• Developed SharePoint
information Hub
July FY14
• 57 facilities
introduced to ISCL
K100
June FY14
• 6 plants scheduled
for FY14
validation
4th qtr FY15
• 37 facilities
validated Bronze
1st qrt FY16
• Silver Level
piloted in each
region
FY13
FY19
Metrics
Scorecard
Assessment
Process
World
Class
Operating
System
FY16
• Silver Level
deployment
FY16
• Silver Level
validation
FY17
• Gold Level
deployment
FY18
• Gold Level
Validation
FY19
• World Class
Current State

14. Achieved
Bronze!
Update: July 2015
Bangalore MET
Barcelona
Bedford
Bedford
Warehouse
Boksburg
Chilhowie
Cleveland DC
Ebermannstadt
Essen
Essen MET
Fallon MET
Henderson MET
Indaiatuba
Irwin
Koenigsee
Lichtenau
Mistelgau
Mistelgau MET
Nabburg FM
Nabburg Steel
Neunkirchen DC
Newport
New Castle MET
New Market
Orwell
Rockford
Rogers
Rogers MET
Schongau
Shanghai Sintec
Shlomi
Tianjin
Traverse City
Victoria
Vohenstrauss
Xuzhou
Zory
Fundamental
Processes in
Place
Effective
Execution
of
Manufacturing
Operating
System
Processes
Flawless
Closed-Loop
End-To-End
Execution with
Kennametal
Customers
Effective
Execution
Throughout
Kennametal Value
Stream
37
L
O
C
A
T
I
O
N
S
 Minimum Score of 80
 Maintain 80 for Six Months
Bronze
Silver
Gold
World Class

15. Global Operating System Video
A World-Class Operating System = Growth
Video Insert

16. Key Takeaways
• Define and assure Fundamental Processes are in place
• Effectively execute and measure compliance to the standard that has been established
• Expect sustainment issues and be prepared with countermeasures
• Have the Customer be the central focus of the operating system
• Measure and Celebrate Milestones

17. Questions