Documents/Summits/Gigante Gary Supplier
AFS Supplier Summit | February 5, 2015 | 1
HISTORY Standing for Quality Since 1955
AFS Supplier Summit | February 5, 2015 | 2
LOCATION Six Foundry Locations • •
• •
AFS Supplier Summit | February 5, 2015 | 3
WHAT WE DO Light Vehicle Market
AFS Supplier Summit | February 5, 2015 | 4
WHAT WE DO Commercial Vehicle Market
AFS Supplier Summit | February 5, 2015 | 5
WHAT WE DO Off Highway Market
AFS Supplier Summit | February 5, 2015 | 6
WHAT WE DO Industrial Market
AFS Supplier Summit | February 5, 2015 | 7
WAUPACA FOUNDRY Key Facts & Figures
AFS Supplier Summit | February 5, 2015 | 8
WAUPACA FOUNDRY People
AFS Supplier Summit | February 5, 2015 | 9
vs.
Equipment
WAUPACA FOUNDRY Employee Development & Training
Motivated & Committed Employees
New Employees
Unskilled Employees
Training And Development Programs
Potential Managers
Input
AFS Supplier Summit | February 5, 2015 | 10
Skilled Employees
Competent Managers Process
Output
WAUPACA FOUNDRY “Promote from Within” Strategy – Growth Potential • Waupaca Foundry recognizes our employees as our most valuable asset and prioritizes their training and development. Outcome is a highly skilled workforce with little turnover.
AFS Supplier Summit | February 5, 2015 | 11
WAUPACA FOUNDRY Internal Training Programs Leadership and Communication Development Programs • Foundry Training Program • Leadership Legacy • I am Waupaca, I am Accountable • Emerging Leadership Development Program • Manufacturing Reality Training Information Technology Training • Microsoft Office (All Programs at all Levels) • Showcase (AS400 Query/Reporting) • RVI (Real Vision Image) Software • SAP, Lotus Notes, and Service Desk Request Training Process Improvement Training • Kaizen • Six Sigma • Green Belt Training • Black Belt Training & Certification AFS Supplier Summit | February 5, 2015 | 12
WAUPACA FOUNDRY External Training Programs Waupaca Foundry works closely with local technical colleges to provide technical training for our employees. Technical Training • NEC electrical code training • Hydraulic Training • Pneumatic Training • FEA/Ansys • Welding Classes • PLC training (Step 7 and 505) • ERT classes for all First Responders • Fabrication Class • Robotic Programming • Robotic Troubleshooting and General Maintenance Waupaca Foundry Customized Degree Programs: • Electro/Mechanical • Quality Engineering AFS Supplier Summit | February 5, 2015 | 13
WAUPACA FOUNDRY Tuition Reimbursement Waupaca Foundry proudly supports continued education. A tuition reimbursement is provided to all employees for approved education programs. The purpose of the Tuition Reimbursement Program is to develop a higher educated workforce and encourage employees to enhance employment opportunities through formal education and professional development.
Total number of employees currently utilizing the Tuition Reimbursement Program: 100+ employees
AFS Supplier Summit | February 5, 2015 | 14
In 2014, Waupaca Foundry reimbursed employees a total of $162,901 for education
WAUPACA FOUNDRY 2014 Training Statistics • Waupaca Foundry invested $2.5 million in employee training wages • Waupaca Foundry invested $1.1 million in employee training courses 2014 TOTAL investment in employee development $3.6 million
AFS Supplier Summit | February 5, 2015 | 15
WAUPACA FOUNDRY 2014 Key Employee Development Achievements Leadership Development Training – 72 employees participated in 2014 Emerging Leaders Development Program – 18 employees participated in 2014 Manufacturing Reality Sessions – 144 employees (6 sessions) – 1 in Marinette, 2 in Tell City, 1 in Etowah, 2 in Waupaca Kaizen Training – 177 employees Six Sigma Training – 15 employees completed Green Belt Training – 1 employee completed Black Belt Training Root Cause Analysis/Problem Solving with Safety – 818 employees trained Compliance Training – Ethics and Code of Conduct (All Salaried Employees) – Global Antitrust (All Salaried Employees) AFS Supplier Summit | February 5, 2015 | 16
WAUPACA FOUNDRY 2015 Projected Key Employee Development Activities Leadership Development Training – 216 employees to participate in 2015 Emerging Leaders Development Program – 12 employees to participate in 2015 Manufacturing Reality Sessions – 48 employees (2 sessions) – Held in Waupaca including employees from all of the Plants
Kaizen Training – 200 employees Six Sigma Training – 20 employees to complete Green Belt Training Compliance Training – Ethics and Code of Conduct (All hourly Foremen / Team Leaders)
AFS Supplier Summit | February 5, 2015 | 17
WAUPACA FOUNDRY
Average Years of Service by Location
10+ Years of Service 1524 Employees 25+ Years of Service 332 Employees
AFS Supplier Summit | February 5, 2015 | 18
Waupaca
- 14 years
Marinette Tell City Etowah
- 14 years - 8 years - 4 years
WAUPACA FOUNDRY Capital Investments
Safety
Must Improve
Quality
Productivity Cost
AFS Supplier Summit | February 5, 2015 | 19
WAUPACA FOUNDRY All Projects are Classified A.
Growth
B.
Process Improvement
C.
Maintenance
D.
Safety/Environmental
E.
IT
AFS Supplier Summit | February 5, 2015 | 20
WAUPACA FOUNDRY Safety / Environmental / Energy Safety projects do not require a ROI – “Just Do It” (Examples: VMM Safety PLC Upgrade, Hoist Upgrades) Environmental projects generally do not require a ROI if compliance is involved (Examples: closed loop water systems, employee cooling/ventilation) Energy projects do require a ROI with a simple payback of less than 3 years (Examples: heat recovery, lighting upgrades)
AFS Supplier Summit | February 5, 2015 | 21
WAUPACA FOUNDRY Maintenance / IT Equipment replacement does not require a ROI, except it must improve Safety
Quality Productivity Cost (Examples: shaker replacements, roof repairs, forklifts) IT projects generally do not require a ROI, however larger system projects such as SAP implementation, or an ERP change would.
AFS Supplier Summit | February 5, 2015 | 22
WAUPACA FOUNDRY Process Improvement / Growth Process improvement and growth projects require an IRR with a minimum of 10%, and a simple payback period of 1-2 years on small projects, and 2-4 years on large projects. (Examples: coreroom expansion, molding line replacement, sand reclamation
AFS Supplier Summit | February 5, 2015 | 23
WAUPACA FOUNDRY Capital Investment Process Categories – Growth – Process Improvement – Maintenance – Safety/Environmental – IT Return on Investment – Simple Payback Period – IRR – Discounted Cash Flow
AFS Supplier Summit | February 5, 2015 | 24
WAUPACA FOUNDRY Capital Investment Process Project write-up required for larger investments –
For growth and process improvement projects
Separate spend detail & financial analysis required –
Calculates payback, IRR, and discounted cash flow
Approval by top Management –
Plant Manager and Controller, Purchasing, Safety, select Directors, CFO & CEO.
Project spend tracking to budget and forecast Upon completion project is closed and asset created
AFS Supplier Summit | February 5, 2015 | 25
WAUPACA FOUNDRY Financial Analysis Yearly Financial Information Summary (in 000's) Year
0
Date
Both monthly and long term analysis required for large projects Cost savings detail and justifications required Post audits on select projects –
Track both operational and financial results to budget
1
2
3
4
5
8/31/13
8/31/14
8/31/15
8/31/16
8/31/17
Production Hours
-
-
-
-
-
Incremental Units
-
-
-
-
-
Incremental Revenues
$0
-
$0
$0
$0
$0
Incremental Margins
-
-
-
-
-
-
Cost Savings
-
-
-
-
-
-
Standard Cost Improvements
-
-
-
-
-
-
Rearrangement Expense
-
-
-
-
-
-
Scrap Expense
-
-
-
-
-
-
Overtime
-
-
-
-
-
-
Training Expense
-
-
-
-
-
-
Supplies Expense
-
-
-
-
-
-
Maintenance Expense
-
-
-
-
-
-
Energy Expense
-
-
-
-
-
-
Product Development Costs
-
-
-
-
-
-
Other Expenses (Standard Cost Improvements)
-
-
-
-
-
-
EBITDA Impact
-
-
-
-
-
-
Check
-
-
-
-
-
Taxes (must comprehend Depreciation &Amort)
$
-
$
-
$
-
$
-
$
-
-
$
-
Working Capital (Inventory, A/P, A/R)
-
-
-
-
-
-
Working Capital (Spare Parts)
-
-
-
-
-
-
Operating Cash Flow Impact
-
-
-
-
-
-
Check
-
-
-
-
-
M&E / Tooling
$
-
$
-
$
-
$
-
$
-
-
$
-
Buildings
-
-
-
-
-
-
IT
-
-
-
-
-
-
Other CapEx
-
-
-
-
-
-
Investing Cash Flow s
-
-
-
-
-
-
Check
-
-
-
-
-
Cash flow Impact Final Year EBITDA x Terminal Multiple
AFS Supplier Summit | February 5, 2015 | 26
9/9/12
$
-
$
-
$ -
-
$ -
-
$ -
-
-
$ -
-
WAUPACA FOUNDRY
Thank you!
AFS Supplier Summit | February 5, 2015 | 27
HISTORY Standing for Quality Since 1955
AFS Supplier Summit | February 5, 2015 | 2
LOCATION Six Foundry Locations • •
• •
AFS Supplier Summit | February 5, 2015 | 3
WHAT WE DO Light Vehicle Market
AFS Supplier Summit | February 5, 2015 | 4
WHAT WE DO Commercial Vehicle Market
AFS Supplier Summit | February 5, 2015 | 5
WHAT WE DO Off Highway Market
AFS Supplier Summit | February 5, 2015 | 6
WHAT WE DO Industrial Market
AFS Supplier Summit | February 5, 2015 | 7
WAUPACA FOUNDRY Key Facts & Figures
AFS Supplier Summit | February 5, 2015 | 8
WAUPACA FOUNDRY People
AFS Supplier Summit | February 5, 2015 | 9
vs.
Equipment
WAUPACA FOUNDRY Employee Development & Training
Motivated & Committed Employees
New Employees
Unskilled Employees
Training And Development Programs
Potential Managers
Input
AFS Supplier Summit | February 5, 2015 | 10
Skilled Employees
Competent Managers Process
Output
WAUPACA FOUNDRY “Promote from Within” Strategy – Growth Potential • Waupaca Foundry recognizes our employees as our most valuable asset and prioritizes their training and development. Outcome is a highly skilled workforce with little turnover.
AFS Supplier Summit | February 5, 2015 | 11
WAUPACA FOUNDRY Internal Training Programs Leadership and Communication Development Programs • Foundry Training Program • Leadership Legacy • I am Waupaca, I am Accountable • Emerging Leadership Development Program • Manufacturing Reality Training Information Technology Training • Microsoft Office (All Programs at all Levels) • Showcase (AS400 Query/Reporting) • RVI (Real Vision Image) Software • SAP, Lotus Notes, and Service Desk Request Training Process Improvement Training • Kaizen • Six Sigma • Green Belt Training • Black Belt Training & Certification AFS Supplier Summit | February 5, 2015 | 12
WAUPACA FOUNDRY External Training Programs Waupaca Foundry works closely with local technical colleges to provide technical training for our employees. Technical Training • NEC electrical code training • Hydraulic Training • Pneumatic Training • FEA/Ansys • Welding Classes • PLC training (Step 7 and 505) • ERT classes for all First Responders • Fabrication Class • Robotic Programming • Robotic Troubleshooting and General Maintenance Waupaca Foundry Customized Degree Programs: • Electro/Mechanical • Quality Engineering AFS Supplier Summit | February 5, 2015 | 13
WAUPACA FOUNDRY Tuition Reimbursement Waupaca Foundry proudly supports continued education. A tuition reimbursement is provided to all employees for approved education programs. The purpose of the Tuition Reimbursement Program is to develop a higher educated workforce and encourage employees to enhance employment opportunities through formal education and professional development.
Total number of employees currently utilizing the Tuition Reimbursement Program: 100+ employees
AFS Supplier Summit | February 5, 2015 | 14
In 2014, Waupaca Foundry reimbursed employees a total of $162,901 for education
WAUPACA FOUNDRY 2014 Training Statistics • Waupaca Foundry invested $2.5 million in employee training wages • Waupaca Foundry invested $1.1 million in employee training courses 2014 TOTAL investment in employee development $3.6 million
AFS Supplier Summit | February 5, 2015 | 15
WAUPACA FOUNDRY 2014 Key Employee Development Achievements Leadership Development Training – 72 employees participated in 2014 Emerging Leaders Development Program – 18 employees participated in 2014 Manufacturing Reality Sessions – 144 employees (6 sessions) – 1 in Marinette, 2 in Tell City, 1 in Etowah, 2 in Waupaca Kaizen Training – 177 employees Six Sigma Training – 15 employees completed Green Belt Training – 1 employee completed Black Belt Training Root Cause Analysis/Problem Solving with Safety – 818 employees trained Compliance Training – Ethics and Code of Conduct (All Salaried Employees) – Global Antitrust (All Salaried Employees) AFS Supplier Summit | February 5, 2015 | 16
WAUPACA FOUNDRY 2015 Projected Key Employee Development Activities Leadership Development Training – 216 employees to participate in 2015 Emerging Leaders Development Program – 12 employees to participate in 2015 Manufacturing Reality Sessions – 48 employees (2 sessions) – Held in Waupaca including employees from all of the Plants
Kaizen Training – 200 employees Six Sigma Training – 20 employees to complete Green Belt Training Compliance Training – Ethics and Code of Conduct (All hourly Foremen / Team Leaders)
AFS Supplier Summit | February 5, 2015 | 17
WAUPACA FOUNDRY
Average Years of Service by Location
10+ Years of Service 1524 Employees 25+ Years of Service 332 Employees
AFS Supplier Summit | February 5, 2015 | 18
Waupaca
- 14 years
Marinette Tell City Etowah
- 14 years - 8 years - 4 years
WAUPACA FOUNDRY Capital Investments
Safety
Must Improve
Quality
Productivity Cost
AFS Supplier Summit | February 5, 2015 | 19
WAUPACA FOUNDRY All Projects are Classified A.
Growth
B.
Process Improvement
C.
Maintenance
D.
Safety/Environmental
E.
IT
AFS Supplier Summit | February 5, 2015 | 20
WAUPACA FOUNDRY Safety / Environmental / Energy Safety projects do not require a ROI – “Just Do It” (Examples: VMM Safety PLC Upgrade, Hoist Upgrades) Environmental projects generally do not require a ROI if compliance is involved (Examples: closed loop water systems, employee cooling/ventilation) Energy projects do require a ROI with a simple payback of less than 3 years (Examples: heat recovery, lighting upgrades)
AFS Supplier Summit | February 5, 2015 | 21
WAUPACA FOUNDRY Maintenance / IT Equipment replacement does not require a ROI, except it must improve Safety
Quality Productivity Cost (Examples: shaker replacements, roof repairs, forklifts) IT projects generally do not require a ROI, however larger system projects such as SAP implementation, or an ERP change would.
AFS Supplier Summit | February 5, 2015 | 22
WAUPACA FOUNDRY Process Improvement / Growth Process improvement and growth projects require an IRR with a minimum of 10%, and a simple payback period of 1-2 years on small projects, and 2-4 years on large projects. (Examples: coreroom expansion, molding line replacement, sand reclamation
AFS Supplier Summit | February 5, 2015 | 23
WAUPACA FOUNDRY Capital Investment Process Categories – Growth – Process Improvement – Maintenance – Safety/Environmental – IT Return on Investment – Simple Payback Period – IRR – Discounted Cash Flow
AFS Supplier Summit | February 5, 2015 | 24
WAUPACA FOUNDRY Capital Investment Process Project write-up required for larger investments –
For growth and process improvement projects
Separate spend detail & financial analysis required –
Calculates payback, IRR, and discounted cash flow
Approval by top Management –
Plant Manager and Controller, Purchasing, Safety, select Directors, CFO & CEO.
Project spend tracking to budget and forecast Upon completion project is closed and asset created
AFS Supplier Summit | February 5, 2015 | 25
WAUPACA FOUNDRY Financial Analysis Yearly Financial Information Summary (in 000's) Year
0
Date
Both monthly and long term analysis required for large projects Cost savings detail and justifications required Post audits on select projects –
Track both operational and financial results to budget
1
2
3
4
5
8/31/13
8/31/14
8/31/15
8/31/16
8/31/17
Production Hours
-
-
-
-
-
Incremental Units
-
-
-
-
-
Incremental Revenues
$0
-
$0
$0
$0
$0
Incremental Margins
-
-
-
-
-
-
Cost Savings
-
-
-
-
-
-
Standard Cost Improvements
-
-
-
-
-
-
Rearrangement Expense
-
-
-
-
-
-
Scrap Expense
-
-
-
-
-
-
Overtime
-
-
-
-
-
-
Training Expense
-
-
-
-
-
-
Supplies Expense
-
-
-
-
-
-
Maintenance Expense
-
-
-
-
-
-
Energy Expense
-
-
-
-
-
-
Product Development Costs
-
-
-
-
-
-
Other Expenses (Standard Cost Improvements)
-
-
-
-
-
-
EBITDA Impact
-
-
-
-
-
-
Check
-
-
-
-
-
Taxes (must comprehend Depreciation &Amort)
$
-
$
-
$
-
$
-
$
-
-
$
-
Working Capital (Inventory, A/P, A/R)
-
-
-
-
-
-
Working Capital (Spare Parts)
-
-
-
-
-
-
Operating Cash Flow Impact
-
-
-
-
-
-
Check
-
-
-
-
-
M&E / Tooling
$
-
$
-
$
-
$
-
$
-
-
$
-
Buildings
-
-
-
-
-
-
IT
-
-
-
-
-
-
Other CapEx
-
-
-
-
-
-
Investing Cash Flow s
-
-
-
-
-
-
Check
-
-
-
-
-
Cash flow Impact Final Year EBITDA x Terminal Multiple
AFS Supplier Summit | February 5, 2015 | 26
9/9/12
$
-
$
-
$ -
-
$ -
-
$ -
-
-
$ -
-
WAUPACA FOUNDRY
Thank you!
AFS Supplier Summit | February 5, 2015 | 27
