This document discusses efforts to improve production reliability on an AF bagger line that was experiencing high downtime and lost production. A focus team analyzed root causes of equipment failures and developed an action plan. Their efforts included engaging equipment manufacturers to evaluate machines, addressing specific issues causing downtime, implementing preventative maintenance programs, and conducting equipment redesigns to improve reliability. Overall production was increased through reducing downtime from equipment breakdowns.

1. AF Bagger Line – No. 1 Bad Actor

2. Total Production 2004 to 2006 = 10.3 Million Bags

3. Lost Production due to Equipment Breakdown

4. Lost Production due to Equipment Breakdown

5. Lost Production due to Equipment Breakdown 1600 Hours of Equipment Breakdowns 2004 – 2006 Equivalent of 1.25 Million Bags Production 2004 - 2006 46 Hours of Equipment Breakdowns/Month on Average $X.XX Million in lost profit

6. Maintenance Costs 2000 - 2006 YTD

7. Maintenance Costs 2000 – 2006 YTD

8. Maintenance Costs 2000 – 2006 YTD Over $1.7 Million in Maintenance Costs over Six Years Capital Project Scope in 2000 = $750K 37% Maintenance Cost/Capital Cost Annually Demand, Downtime and Maintenance Spend are all Increasing !

9. ACTION PLAN Operations : Jim Robinson, Randy Knowles, Operators Maintenance: John Derrenbacher, Matt Clemens Engineering: Tom Friedl, Drew Mummert Management: Ron Pollock AF Bagger Bad Actor Focus Team

10. Bad Actor Focus Team Downtime Pareto Analysis

11. Bad Actor Focus Team Action Plan – Palletizer Engage Manufacturer – Premier Tech to evaluate machine (Jan-07) Develop Maintenance Project to address top recommendations Improved Photo-eyes Rebuild Pallet Dispenser Program Upgrade Improved Pacing Conveyor Belt Improved Bag Flattener Belt Adjustment Implement formal PM Program and Operator Performed Inspections

12. Bad Actor Focus Team Action Plan – Bagger Engage Sewing Head manufacturer – Fischbein to evaluate machine and train maintenance and operations (Feb-07) Address outstanding equipment issues and downtime causes Frequent bearing failures on in-feed belt pulleys Salt spillage from Bag Spout on pre-charge Bent Belt-Lifting mechanism shafts Bag Magazine Vacuum Plate/ Grippers and Vacuum Break Valve Hopper/Spout lifting mechanism wear (Winkle Bearings) Individual Gripper Arm and Conveyor Belt adjustments Implement formal PM Program and Operator Performed Inspections

13. Bad Actor Focus Team Improvements Sewing Heads Discovered no two heads were set to same stitch length (critical parameter for line speed synchronization) – established 2.5 SPI as standard Elected to have Fischbein resume Sewing Head service rather than McCain Industrial Considering new Fischbein short-stroke design sewing head for trial operation Training on set-up and troubleshooting by Bob Jenkins of Fischbein for mechanics and electricians Testing slower sewing station line speed (50-55 FPM)

14. Bad Actor Focus Team Improvements In-Feed Belt Bearings Old style shielded bearing, typical failure mode – salt contamination New style sealed bearing with Teflon-impregnated fiberglass seal

15. Bad Actor Focus Team Improvements : Salt Spout Hopper Redesign Separating the hopper from the spout reduces the load and wear on the lift mechanism and “winkle bearings”, an expensive and time consuming rebuild

16. Bad Actor Focus Team Improvements : Salt Spout Redesign

17. Bad Actor Focus Team Improvements Salt Spout Re-design Original Spout leaks salt on pre-charge, contaminating all moving machine components New Spout designed to hold salt on pre-charge with closely machined tolerances

18. Bad Actor Focus Team Improvements Salt Dust Collection No previous dust collection to capture dust generated during fill sequence New dust collection system installed over bag corners

19. Bad Actor Focus Team Improvements Conveyor Lift Shafts Original shafts unable to support load, causing sprocket misalignment and wear New shafts extend through both sprockets, providing maximum support

20. Bad Actor Focus Team Improvements Bag Magazine Vacuum Plate Original plate fastened incorrectly, clamps out of alignment to compensate New plate – clamps aligned for maximum gripping surface. Added vacuum break valve

21. Bad Actor Focus Team Improvements Bag Pusher Original pusher failed and re-welded numerous times New pusher

22. Bad Actor Focus Team Improvements Flattener Belt Adjuster Original mechanism failed repeatedly at the pinion gear New adjusting mechanism – 40 Roller Chain and sprockets

23. Bad Actor Focus Team Results