S   P    E     C    I   A     L        E   D   I   T    I   O     N


                       The Gears for Success
       ...
Exceeding Expectations
We seek to streamline operations to deliver the quality aerostructures our customers demand.




VO...
Boeing Customer
                      Congratulates
                      747-8 Team
                      “You all have p...
The Wellness Warrior program was initiated in 2008 to recognize those employees who demonstrate
ominated by their peers an...
e an exceptionally healthy lifestyle as part of the LiveWell@Vought program. The candidates are
cate, and a brief write up...
Practicing Safety
 A safe workplace is our number one priority.
                                                          ...
Bikers Unite for Safety
   For the second year in a row, Vought joined with                Milledgeville riders form a clo...
Cultivating Continuous Improvement
As a company and as individuals, we take responsibility for the quality of everything w...
777                                                                                                       777
Stuart and  ...
Cultivating Continuous Improvement
                                                                        V-22 Osprey
   ...
Vought Operating System
                                                                                       The Preside...
Supporting Our Communities
Being a strong steward in our communities...is the right thing to do.


                       ...
Educational Contributions
  Eight relatives of Vought employees received scholarship
awards from Vought in 2009. Each stud...
Being Responsible
Each of us is personally accountable for our actions and behavior.




                                 ...
Employee Survey

                              A number of initiatives were implemented this year as
                     ...
Service Anniversaries                                                                    December 2009



45   YEARS      ...
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Vought News Year End Special Edition

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Vought News Year End Special Edition

  1. 1. S P E C I A L E D I T I O N The Gears for Success represent Vought’s core set of values, an integral part of everything we do as a workforce and as a company. News This Year In Review edition of Vought News highlights our achievements in 2009, as we use the Gears for Success to guide our daily actions and decisions in our relationships with each other, with our customers, suppliers, investors and within the communities VOUGHT where we work and live. 2009 YEAR IN REVIEW DEC 28 2009 ADVANCING FLIGHT
  2. 2. Exceeding Expectations We seek to streamline operations to deliver the quality aerostructures our customers demand. VOS Team Receives Silver And Gold Eagle from Boeing Vought employees and its Gulfstream Honors industry teammates earned the Vought as Supplier award by reducing product lead time on the C-17 Globemaster of the Year III transport from 29 months to For the second year in a row, Vought 20 months. This is Vought’s first received the Supplier of the Year Award Gold Eagle award. Vought has from Gulfstream Aerospace, recognizing received four Silver Eagle awards our efforts on the G350/G450 nacelles from Boeing since joining the program. This represents Gulfstream’s C-17 team in 1983. highest supply chain excellence award. C-17 wins for project excellence Army Customer Visits Vought BLACK HAWK Team Colonel Neil Thurgood, U.S. Army Light Utility Helicopter Program Manager, visited the BLACK HAWK team during our celebration of the 200th delivery of the H-60 cabin. Thurgood toured the facility and shook hands with the men and woman who not only “build aircraft but save lives.” Both Milledgeville and Jefferson Street contribute to the H-60 program. Thurgood congratulates Dianne White on her 42 years of service to Vought. 2
  3. 3. Boeing Customer Congratulates 747-8 Team “You all have put your heart and soul into this. Marshall Street It has been a beautiful thing watching this come together.” Christi King, Boeing 747-8 Supplier Management Director, at Vought 747-8 first delivery celebrations. Gulfstream Vought delivered 39 ship sets of G550 wings this past year. Build rates are increasing in 2010 and 2011. BLACK HAWK cabin Jefferson Street The success of our BLACK HAWK program is not only vital to our customer, Sikorsky Aircraft Corp., and to Vought but it’s invaluable as a critical air vehicle for the men and women in our military services who are in harms way. 3
  4. 4. The Wellness Warrior program was initiated in 2008 to recognize those employees who demonstrate ominated by their peers and then voted on by a committee. Each winner receives a T-shirt, a certific Providing a Healthy Workplace tart of Our people are our greatest resource and our competitive advantage. The number of employees with five or more risk factors declined more than 25 percent since the start of the program. Wellness Program Helping Employees Get Healthy The LiveWell@Vought program launched in June 2007. Our intent was to make substantial and permanent lifestyle improvements in our workforce. In a 2008 employee opinion survey, 75 percent of our employees rated our health program offerings very highly. That’s 30 points above the manufacturing industry’s average. Participation Rates are increasing: 2008 2009 Stuart 74% 86% Financial and Milledgeville 67% 76% Emotional Marshall Street 67% 70% Well-Being Enhancing employees’ well-being is Jefferson Street 52% 55% one of Vought’s core values, and the LiveWell@Vought program has done Hawthorne 44% 52% a good job focusing on the employees’ physical well-being. But physical well- Nashville 43% 52% being is only one aspect. There is also financial and emotional well-being. Recognizing this, Vought introduced a financial counseling service through Ayco that will help employees with A climbing wall keeps kids exercising at the Nashville their personal financial decisions, at no safety and wellness fair. charge to the employee. In addition, Vought continues to offer ValueOptions, a program created to help employees resolve personal problems before they negatively affect their health, relationships with others, or job performance. Annual Health Screenings 4
  5. 5. e an exceptionally healthy lifestyle as part of the LiveWell@Vought program. The candidates are cate, and a brief write up. 2009 Wellness Warriors Milledgeville Jefferson Street Benny Watson Chuck Stanley Vincent Valentine Roy Morrison The Wellness Warrior program Eleanor Sanders Angela Bush was initiated in 2008 to recognize Garo Bardizbanian Michael Ahern those employees who demonstrate an Pete Oates exceptionally healthy lifestyle as part of the Michele Salvador Stuart LiveWell@Vought program. The candidates Jim Peeler Bob Corcoran Scott Sinan are nominated by their peers and then voted Hawthorne Robert Bell on by a committee. Each winner receives a Marc Etienne Bobby McCorkle T-shirt, a certificate, and a brief write up. Victor Curiel Charlie Beagan Denise Mallison Marshall Street Joe Roman Ken Saxton Jennifer Lucas Four unique wellness campaigns are offered Blane Simoneaux each “semester” to provide encouragement, Joe Hernandez Nashville Paula Yates Lynne Warne variety, goal setting, and even monetary John Lahue John Thomas rewards for achieving certain levels of Cynthia Tennie Brad Sayer participation. Pablo Sanchez Derrell Bowden Marcy Sandles Janie Pointer Employees Stepped to a New Larry Magnus Jim Montgomery You, got a Healthy Heart, developed Steve May Teresa Longoria Healthy Habits, and Rated Your Plate for lessons in living a more active and healthier lifestyle. Vought Receives Top Awards for its Wellness Programs Vought’s Wellness program continues to gain outside recognition. Vought was again named a Platinum-level Recipient of the American Heart Association’s Start! Fit-Friendly Companies for the second year in a row for helping our employees eat healthy and stay active. Vought was also selected as the first place winner in the large employer category by Champions in Health for our exemplary wellness programs in the Dallas/ Fort Worth area. As part of the wellness initiative at Vought, a group of Stuart employees formed a bike group to increase their exercise options. 5
  6. 6. Practicing Safety A safe workplace is our number one priority. Hawthorne Receives Chairman’s Safety Award The Chairman’s Annual Safety Award is a very significant honor recognizing this important aspect of our business. The award goes to the site with the most improved safety record during the past year. In 2009, the award was presented to the Hawthorne team for reducing their OSHA recordable injury rate The Safety Coin Hall of by more than 50 percent. Fame is a new program that is spearheaded by our CEO Elmer Doty. The coin is awarded to employees who have demonstrated exceptional effort toward making Vought the safest place to work. Those who hold the coin personify our number one priority – safety. Winners are nominated by their fellow employees. Below is the class of 2009 2009 Safety Coin Hall of Fame Left to right: Malcolm Page, Bryan Jordan, Raul Gonzales, Randy Farbowich, Sovy Phaann, Marc Etienne, GM Dana Dickson, Jim Gay, Roger Steed, and David Squier, Vought Chairman of the Board. Contour / Brea Celebrate Safety Milestones Brea has made a number of changes to its safety protocols enabling them to reduce their OSHA recordable injuries year after year. Some of the changes include daily Dale Fry Roselee Thompson Michael Leistner department meetings, weekly safety games, discipline and JSF/BLACK HAWK JSF/C-17 JSF/BLACK HAWK structure. The results have been dramatic. Look at how their numbers of recorded injuries have decreased. 2004 – 30 2005 – 14 2006 – 13 2007 – 9 Marty L’Heureux Alfonso Rivera Arly Ramirez 2008 – 6 Stuart/767 MSF/Fuselage IPT JSF/BLACK HAWK 2009 – 1 6
  7. 7. Bikers Unite for Safety For the second year in a row, Vought joined with Milledgeville riders form a close knit group. the National Highway Traffic Safety Administration (NHTSA) in proclaiming May 2009 as “Motorcycle Safety Awareness Month.” All of the sites recognized the awareness campaign by inviting all their bikers to ride to work and participate in various activities throughout the day. Contour / Brea bikers show their support Above, Contour / Everett bikers turned out for for motorcycle May Motor Rally in recognition of Motorcycle safety. Safety Awareness month. Nashville bikers line up their cycles for the employee “best bike” contest. Mike Smith (right) won the first place award. 7
  8. 8. Cultivating Continuous Improvement As a company and as individuals, we take responsibility for the quality of everything we do. 747-8 747-8 1st ship set celebration Stuart The 747-8 program touches almost all of our sites and is a key program for Vought. This year our sites celebrated delivery of their first shipsets. Hawthorne Marshall Jefferson Milledgeville Stuart Hawthorne fabricates Street Street Milledgeville builds Stuart builds the and assembles the the 747-8 rudder and cargo doors for the side fuselage panels in Marshall Street Jefferson Street Freighter model and nacelle components addition to fabricating the assembles the fabricates the will be making the and composite detail skin panels for the upper entire empennage detail parts for the passenger doors for the parts for lower rudder and lower bonnets that (horizontal and horizontal and vertical Intercontinental. Stuart and Aft tab. get shipped to Marshall vertical stabilizers, stabilizers, and the Aft also builds the lower Street for assembly. upper rudder, body section. rudder/Aft tab. elevators), Section 48 Aft body, upper/lower fuselage panels and floor beams. 747-8 1st ship set celebration Hawthorne 8
  9. 9. 777 777 Stuart and Stuart Milledgeville These two sites celebrated unique milestones when they both delivered their 777th shipset for the Boeing 777. Milledgeville and Stuart produce the composite details for the main and aft inboard flaps. 767 Contour / Everett Celebrates 100th 767 Winglet Kit Ship Set The winglet kit consists of 10 assemblies, 12 stringers, 48 straps and 4 wing panels (2 upper, 2 lower). All Contour employees had a role in this landmark delivery. A330/340 Nashville Celebrates 1,000th Ship Set for Airbus Nashville supplies the mid- and outboard leading edge assemblies, top panel assemblies, center spar assemblies and mid-rear spars for the A330/A340. In 1988, the company became the first major U.S. supplier to Airbus with the award of the wing components. Vought Wins New Work on 737 and 777 Boeing entered into agreements with Vought for new work scope that included inboard flaps for the 737 NG; outboard flaps and ailerons for the 777, and extended the current contract on inboard flaps and spoilers. 9
  10. 10. Cultivating Continuous Improvement V-22 Osprey Empennage deliveries began on the initial lot of a 5-year multi-year contract and the entire V-22 team stepped up performance on all deliverables increasing move rates to support an annual 26 ship set requirement. t C-17 The C-17 continues to get funding on a year-to-year basis. The fiscal year ‘09 supplemental budget added eight VOUGHT ENTERPRISE CHANGE TRANSFORMATION & REENGINEERING aircraft for a total fleet of 213. The 2010 Defense bill provides $2.5 billion for 10 C-17 cargo aircraft. t VECTR Team members C-130 The C-130 team increased rate We are transforming our business. This beyond two units per month. We are is a big project – one of the biggest ever continuing improvements to customer undertaken at Vought, and one that will FOB schedule and we delivered 19 change our business processes forever. units through the end of November. The project is called VECTR, an acronym We negotiated follow-on contracts for that stands for Vought Enterprise Change quantities of 28, 53 and 58 ship sets Transformation and Reengineering. (deliveries through May 2013). t Global Hawk (BAMS) Vought is currently building wings for Air Force Global Hawks and will continue to build these until at least 2012. 29 USAF wings have been delivered to date. The BAMS configuration (for the U.S. Navy) will require new Spar/ Rib Bond Tooling. Tool Design t has started. 10
  11. 11. Vought Operating System The President’s Award Milledgeville Green Belt Class The Vought Operating System (VOS) is a framework of principles, tools, and processes that guide our pursuit of flawless execution. The purpose of the system is to eliminate, through improvement activities, various kinds of waste within the company. The VOS encompasses all of our improvement Best Overall Improved Site activities including Lean, Six Sigma, Management Operating System (MOS), and Quality Control Process Charting to form an integrated process improvement system. 2008 4th Quarter: Contour / Brea and Since 2006, many Yellow Belts: 1440 Contour / Everett employees have gone Green Belts: 287 through Six Sigma 2009 Black Belts: 34 Training 1st Quarter: Milledgeville Master Black Belts: 1 2nd Quarter: Marshall Street and Stuart 3rd Quarter: Marshall Street On the Road to Operational Excellence Teams at each site work through a set of objectives identified in each tier of the Vought Operating Vought Named Best System to work their way up to achieving the highest level of Operational Excellence – the Gold. Place to Work In Martin In addition to IAD Military Programs, the County, Florida following sites’ production areas have reached the Vought was recognized as a Best Places to Work first level, the Qualifying level: in Martin County (Stuart site) by a local human Hawthorne Marshall Street resources professional association. Vought is one Jefferson Street Milledgeville of three companies to receive the recognition in the category of more than 250 employees. Stuart Nashville Vought Named Top 10 Best Places to Work for Six Sigma Professionals For the second consecutive year, Vought has been named to iSixSigma’s list of Best Places to Work for Six Sigma professionals. Vought was one of three companies that remained on the Top 10 list from 2008. Last year Vought received the No. Attending the award ceremony from left to right: Rick 2 ranking on the list of iSixSigma’s Top 10 Best Places DeMarchi, Steve Livingston, Paul Sandhu, Dana to Work for Six Sigma professionals. Allen, Fred Kahl, Nancy Barkheimer, Mel Tiedemann. 11 11
  12. 12. Supporting Our Communities Being a strong steward in our communities...is the right thing to do. Giving back to the community in which we work and live is a tradition for us as Vought employees. From company wide campaigns and local activities to blood drives, we strive to help those who need assistance the most. Can Do! One of Vought’s biggest fundraisers, Can Do! raised more than $215,000 last year for a variety of food banks around the country. Monies are raised through a variety of activities including golf tournaments, cake and bake sales, auctions, chili cookouts, and the sale of Can Do! T-shirts. Voluntary payroll deductions throughout the year and corporate contributions also add to the total. This fundraising activity has been a company tradition for 27 years. March of Dimes Vought and its employees nationwide raised more than $100,000 for the March of Dimes “March for Babies” campaign in April. In addition to the amounts that individual Stuart team hands over check walkers raise from sponsors, money is also raised from activities throughout the sites that include bake sales, T-shirt sales, contests, raffles, silent auctions and a corporate contribution. United Way Across America, United Way agencies improve lives by mobilizing the caring power of their communities. Our employees give generously to the United Way through payroll deductions. These funds help support local non- profit agencies, such as the American Red Cross, American Cancer Society, Salvation Army, Goodwill and the YMCA. In 2009, Vought and its employees contributed more than $200,000 to local United Ways. Hawthorne marchers 12
  13. 13. Educational Contributions Eight relatives of Vought employees received scholarship awards from Vought in 2009. Each student receives $2,000. Vought participated in Engineers Week in Dallas. As presenting sponsors at the Frontiers of Flight Museum, Vought held four different workshops for mostly middle school students that addressed different fields of interest in aerospace and other engineering disciplines. The Hawthorne site sponsored two local high school students through Loyola Marymount University’s Science and Engineering Community Outreach Program. The students from Hawthorne High School attended a summer science and engineering camp held on campus. The two-week residential summer pre-college program is designed to encourage the study of science, technology, engineering and mathematics. It also provides students with important information about SATs, Hawthorne GM Dana Dickson (second from left) receives college admission, and scholarships. plaque from Marymount University representatives in recognition for Vought’s sponsorship. Corporate Contributions Vought supplements the donations of our employees by providing funds to a limited number of 501 (c)(3) charitable non-profit organizations. In addition to the more than $100,000 that Vought donates to the organizations listed above, in 2009 our company contributions totaled over $85,000. These funds went to the organizations below. Reserveaid - Stars & Stripes Dinner Benefiting Texas Troops DFW USO “Second Annual DFW USO Patriots Salute” World Affairs Council of Dallas/Fort Worth AIA’s Team America Rocketry Challenge CCAI – Congressional Coalition of Adoption Institute The Angels in Adoption Gala September 18, 2009 UHC Scholarship Fund Brother Bill’s Helping Hand Air Force Charity Ball Dallas Rotary Club Vought engineers discuss the future of the industry with Best Buddies Virginia students at the Vought display at Engineers Week. Dallas Baptist University Dallas Citizens Council Some of the local organizations that our employees and sites donate time and/or money to: Alive Hospice Milledgeville- Baldwin County Fire Dept American Cancer Society National Fire Safety Council American Heart Association Heart Walk North Texas Food Bank Annual Baldwin 20/20 Community Retreat Pencil Foundation Baldwin Park Community Center - Santa Clothes Program Relay For Life Baldwin High School CTAE Second Harvest Food Bank of Middle Tennessee City of Hawthorne Chamber of Commerce Second Harvest Food Bank of Orange County Empty Stocking Fund South Bay Workforce Investment Board GMC & GCSU Sponsorship Special Olympics Grand Prairie Chamber Of Commerce St. Stephens Food Pantry Guide Dogs of America Susan G. Komen LA Regional Food Bank Tarrant Area Food Bank Mary Vinson Memorial Library Volunteers of America Western Washington White Doves Holiday Project 13
  14. 14. Being Responsible Each of us is personally accountable for our actions and behavior. This fall an online training course called “Vought Ethics and Standards of Business Conduct” was implemented. The training is required of all Vought employees. The course provides an introduction to our code of ethics, a reminder of our core values (the Gears for Success), and a review of common business situations that can lead to ethical lapses. At Vought each of us is accountable for our actions and behavior, and we have set high ethical standards that everyone must meet. Maintaining these standards is not only the right thing to do; it’s the only way we do business. Committed to Our Environment This year Vought employees got In Stuart, employees switched to Marshall Street recycles all its paper behind a number of activities to help using recycled paper products (paper products. our environment. As part of our 2009 towels and toilet paper.) Nashville reduced water usage in Earth Day celebration, a company- Milledgeville recently shut down the autoclave process and reduced air wide initiative was begun to recycle a tank line significantly reducing the pollution by eliminating (or retiring) printer cartridges. plant’s water usage. an old piece of equipment that was “Over 350 million cartridges are At our Hawthorne location, there a significant source of pollution and discarded in our landfills each year, is an ongoing recycling program for replacing with new Shot Peen process. and that number increases by 12% paper and wood crates. By working together and annually,” said Joanne Romano, participating in a variety of recycling Vought’s Manager of Environmental Jefferson Street held a household hazardous waste round up where programs, Vought is helping to protect Health and Safety. the future of our environment. employees could drop off hazardous A number of other recycling waste such as various chemicals, initiatives have taken place this year. fertilizers and pesticides. Jefferson Street conducted their second annual household hazardous waste pick up. 14
  15. 15. Employee Survey A number of initiatives were implemented this year as a direct result of the feedback that was received from the Employee Survey. Each site developed action plans in response to the results of the survey. Additionally, several communications pieces were developed. Mid-Week Messages A weekly e-mail to Vought leadership provides information that they can share with employees during their weekly team meetings. VoughtCast A brief video by a senior executive is distributed regularly via the Vought intranet. The audio portion is also available via an 800 telephone number. 787 Transaction On July 6, we signed an agreement to sell our North Charleston, SC operations to The Boeing Company. Vought employees at the site became Boeing employees, and Vought employees in Dallas continue to provide engineering services on the 787 aft fuselage. Vought continues to support the 787 program today through engineering support and manufacturing of various detail components (as shown in the drawing below). First Flight December 15, 2009 15
  16. 16. Service Anniversaries December 2009 45 YEARS 25 YEARS 10 YEARS 1 YEAR Marvin Arwine (N) Brian Bartlett (MSF) James Murphy (Seattle) Mohammed Ahmmed (JSF) Billy Dugan IV (JSF) Pat Walsh (N) Bounthong Chanthorn (JSF) 35 YEARS KayLynn Dunn (JSF) Billy Collum (JSF) YEARS Domingo Flores Jr. (MSF) Sourithay Dethoudom, (JSF) Steve Anderson (MSF) Walter Johnson Jr. (JSF) 5 Joe Ford (MSF) Larry Brown (MSF) Ron Love (JSF) Adrian Bruner (JSF) Gabriel Garcia Diaz (JSF) Troy Lyon, (JSF) Paul Cargile (M) Daniel Holden (JSF) YEARS David McCloskey (JSF) Jesse Keel (JSF) 30 Larry Moody (N) Donald Coyle (M) Mauricio Quintanilla (JSF) Jim Davies (E) Elton Binkley (N) Miguel Morales (JSF) Richard Davis II (M) Trevor Rios (JSF) Leon Conyer (N) Scotty Noteware (MSF) Charles English (M) Riah Rode (H) James Devoll (MSF) Lisa Gomez (Las Colinas) Somphou Sourygnavong (JSF) Joshua Stone (JSF) YEARS Joel Gammons (JSF) Brian Herringdine (M) John Gentle (N) 20 Lisa Holsey (M) Jeff Taylor (M) Valerie Jordan-Taylor (N) Mosley Mosley (M) Jimmy Tran (JSF) Rodger Jones (JSF) Douglas Lewis (JSF) Bubba Smith (N) Diane Walters (H) Ron Knight (JSF) Corry Lindsey (JSF) Beverly Taylor (MSF) Brett Weilbrenner (JSF) Michael Prairie (N) Jackie Nix (MSF) Courtney Tucker (JSF) Jesse Zuniga (JSF) Pat Russell (JSF) Douglas Nugent (S) Carol Upp, (JSF) Verne O’Neill (N) Tominique White (JSF) Buddy Reid III (N) 15 YEARS Timmy Trapp (N) David Turner (N) Frank Houston (JSF) Terry Moore (JSF) Happy Holidays! 16

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