Valves & Process Systems – Little Rock Overview

Orbit Valve & General Valve Manufacturer

Safety Moment – Heavy Lifting

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Little Rock HSE Event Reporting & Highlights
2019 TRIF
1.93

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Agenda
VPS – Little Rock Plant & Product Overview

Plant Staff, Customer Service, Materials, and Engineering Organizations

Delivery Improvements

Lead Time Improvements

Cost Improvements

Plant Transformations

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Little Rock Product History
1912 Oilwell Improvements Company of Tulsa, Oklahoma was founded

1936 Company was renamed Orbit Valve Company

1937 The first Orbit Rising Stem Ball valve was manufactured

1963 Orbit Valve relocated to Little Rock, AR

1983 Orbit Valve # 1,000,000 was manufactured

1984 TruSeal was acquired by Orbit Valve

1998 Cameron Corporation acquired Orbit Valve & TruSeal.

2004 Cameron Corporation acquired General Valve in Brookshire, TX

2005 Relocated manufacturing of General Valve to Little Rock

2016 Cameron acquired by Schlumberger

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Little Rock Facility Overview
PLANT CAPACITY CURRENT HEADCOUNT
30000
Direct/Indirect 240
25000

20000
Support Staff 129
15000 TOTAL 369
10000
Product Engineering 23
5000
Mfg. Engineering 9
0
2016 2017 2018 2019 2020 Plnd
Quality Engineering 7
Units Produced Max Demonstrated Capacity

Theoretical Capacity

PLANT SIZE CORE COMPETENCIES CERTIFICATIONS

Manufacturing 192K Sqft. Orbit Core Manufacturing General Valve
Inventory & Warehousing 52K Sqft. Orbit Stem & Cam Machining • API 6D, ISO, PED, TR CU
Office Area 55K Sqft. Orbit Metal Seat Assembly Orbit
TOTAL: 299K Sqft. General Valve Slip Bonding • ISO, PED, SIL, TR CU
Orbit & GV Assembly & Test

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Little Rock Product Offering
Product Line Graphic Size Range Pressure Units Units Units Units
Styles Classes Produced Produced Produced Scheduled
2017 2018 2019 2020

Orbit
150 -
Rising Stem 1”-24” 6,490 9,747 9,127 5,323
2500
Ball Valve

General Valve 150 -

2”-36” 5,948 6,204 4,405 1,472
Plug Valve 1500

Total
Units 12,538 15,951 13,532 6,795
Produced

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Little Rock Manufacturing Technology
Turning Max Diameter: 70.5”
Max Height: 59”
Milling X axis travel: 110”
Y axis travel: 61”
W axis travel: 71”
Machine Table: 55” x 55”
Weld PTA Hardface Overlay, SMAW, GMAW,
GTAW, PTA, Stellite 6, Nickel, Hastelloy
Assembly, Test, Paint 25 Ton lift capacity
Valve Automation
10,000 psi Hydro
Fugitive Emissions Testing
Gas and Cold Box Testing
Quality CMM Dimensional
Calibration Lab
Mag Particle Inspection
Dye Penetrant
Positive Material Identification
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Little Rock Plant Staff
V&M
V&M
EMS
Inside Sales
Engineering
Amelia Bardwell
Plant Manager

Joe Keaton Todd Case Christian Douglas Anglin John Nelson Richard
V&M Proposals Product Engr Kardas Supply Chain Manufacturing Warehime
Mgr Mgr Materials Mgr Mgr Mgr Mfg Engr Mgr

Darcy Krupitsky Tommy Schichtl Thane Krile Frank Devere Jennifer Mitchell Ann Mantooth Peggy Mills
Sales Ops Mgr Quality Mgr HSE Mgr Controller HR Mgr HR Mgr Sr. Admin Asst.

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Little Rock Sales Operations Organization
Darcy Krupitsky
Manager of Sales Ops

Cornelius Simmons
Andre Akins Brian Rogers
Customer Service Team Documentation
Project Manager Project Costing Lead
Specialist

Susan Copenhaver
Sandra Johnson
Project Manager Sadira Fergusson Order Management Improvements
• Increased focus on customer service and
Martha Highsmith communication
Jaranimo Marks • Implementation of risk tool, CRITER
Project Manager Liz Miller
• Evaluation and improvement of all policies
and procedures for project management.
Fredy Para
Steve Goldberg
• Face-to-face customer meetings and
Project Manager
Kasey Steed
attendance at Kick-off Meetings

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Little Rock Materials Planning Organization
Christian Kardas
Materials Manager

Mark Rice Kellie Powell Jacob Feldman Jessie Hallmon

Planning Supervisor Orbit Value Stream GTS Value Stream Global Services Value Stream
Planning Manager Planning Manager Planning Manager

Diana Howard Greg Iosbaker Cynthia Daughtery Brenda Jackson Darla Brooks
Planner Planner Master Scheduler Master Scheduler Planner
Tommy Henthorne Pamela Kolton
Planner Planner
Materials Planning Highlights
Melanie Strozyk Joshua Kukielka • Addition of Global Services value stream team
Planner Planner
• Dedicated teams for Short Term and Long Term Planning
Carla Rix Major White • Planning Managers own demand analysis for S&OP Cycle and
Planner Planner Forecasting of respective product lines/value streams
Charlene Steele Jake Shed • Dedicated planners for respective product lines/value streams
Planner GRDP - Planner

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Little Rock Engineering Organization
Todd Case
Process & Refining
Engineering Manager

Shannon McLaughlin
Matthew Ragland Kevin Peel
Sustain Engineering
Product Lead Supervisor Application Lead
Supervisor

Steven Roderick Jake Layson

Gaudencio Arce Joseph Nguyen Mason Lewis
Product Lead - Orbit Product Lead - GV
Application Lead - Orbit

Freda Barnett Wayne Pedigo Russell Allen Bob Wolf

Holly Johnson
Katharine Eckman Dominic Rose Andrew Tilley Bulmaro Campanur Application Lead - GV

Michael Howard Eric Sullivan Dale Winslow James Rowell

Randy Jones Garrett Wilburn

Engineering Highlights
• Dedicated teams for New Product Development, Order Engineering, and Applications Engineering
• Recent Patent awards for General Valve stem set, General Valve trunnion connection, Orbit valve roller guide pin

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 Orbit Lead Time Reductions
Orbit Lead Times Orbit Lead Time Reductions (50 to 36 Weeks)
60
• Core output throughout 2018 increased 70%
Weeks EXW, Little Rock

50
• Capped distribution capacity at 50%
40
• Loading forecast from demand plan/S&OP
30
• Valve Kits
20

10
• Trim Kits
0
• Actuator Kits
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Turnkey components
2018 2019

Orbit Orbit Goal

• New Welding technology for Cores

General Valve Lead Times GV Lead Time Reductions (40 to 16 Weeks)

40
• Turnkey castings from India
Weeks EXW, Little Rock

35
30
25
• Capping distribution capacity at 60%
20
15
• Loading forecast from demand plan/S&OP
10
5
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2019

GV GV Goal

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Little Rock Past Due and OTD
35,000 Clean Fuels 90%

80%
30,000
70%
25,000
60%

20,000 Sanmar 50%

30,114
Delivery 40%
15,000
22,500 22,200
9,250
16,010 13,300 30%
13,850 6,500 3,455
10,000 13,890 14,810 13,470 12,060 8,523 2,130
8,550 6,030 5,100
4,355 6,325 20%
4,085
4,050 5,725 5,120
1,527 5,850 4,000
5,000 2,250
7,200 7,890
6,300 3,210 2,383 3,235 3,115 2,900
2,000 1,750 10%
4,620 4,920 5,300 2,500 2,100 2,000
3,720 3,720 3,620 4,260 3,590 4,270 3,360 1,800 1,600
2,900 2,450 2,400 2,650 2,770 2,650 2,000 2,240 2,760 2,170 2,400 2,000 1,500 1,500 1,500 1,250 1,000
0 0%

General Valve Orbit Sanmar OTD

Execution Mitigation Organizational Improvements

• Active capacity management with measurement of daily, • Planning manager and restructuring of planning department
weekly, monthly targets • Sales Operations Manager driving improvements in customer
• All major components have dual sourcing strategies; service and risk mitigation
some tertiary • Quality Manager with a root cause focus
• 53% reduction in CONC; solving root causes • Manufacturing Manager driving shop accountability and execution
• Implementation of Risk Mitigation tool for major projects • Manufacturing Engineering Manager driving cost reductions,
visual factory, and efficiency improvements
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Orbit Valve Cost Reduction Ambition
$6.7M (10.9%)
Target of 30% Reduction by 2021
$6.3M (10.2%) $0.4M
• 2019 – 9.9%
• 2020 – 10.4% $5.4M (8.8%) $0.9M
• 2021 – 2.3%
$3.3M (5.3%) $2.1M $6.3M
$2.8M (4.5%) $0.5M $5.4M

$3.3M
$2.8M

Q3 Q4 Q1 Q2 Q3

• Orbit Stems 6A718 • Orbit Stems 8620 • Turnkey Orbit Stems • Bonnet design • BCC Source H8 & H
Inconel & 660 material, new end- standardization type seat
Material, new end- mill • Orbit core welding components (Inner
mill equipment • Enhanced Packing & Outer Rings)
• Orbit body, fixturing modernization on Bonnets
• Orbit bodies & improvements • Review features on
bonnets (Turnkey • Re-sourcing of XL • Standardization on the 1-pieces stem
continuation) • Single Layer overlay Bodies & Bonnets 6A 718 Material for cycle time
design, cycle time from Peekay (elimination of heat savings, and cost
• Orbit assembly savings treat operations) (plating/coating)
kitting labor cost • Ni Alloy alternative
reduction BCC source

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General Valve Cost Reduction Ambition
Target of 30% Reduction by 2021
• 2019 – 8%
• 2020 – 6.5%
$3.1M (14.0%)
• 2021 – 4% $2.8M (12.6%)
$0.3M
$2.4M (10.8%) $0.4M

$1.7M (7.7%) $0.7M $2.8M

$2.4M
$1.7M

Q4 Q1 Q2 Q3

• General Valve • Slip Machining • Cycle time • 4-way Redesign

Assembly Kitting improvements; reduction for & BCC Sourcing
labor cost cycle time Test operations; (20%)
reduction fill & drain
• Re-sourcing GV • Turnkey Slips in
• Current domestic 8800A • Lower plate BCC BCC
8000, 800 Components Sourcing
components with BCC
sourced BCC • Stem set BCC
Sourcing

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 Machining Cycle Time Improvements
Manufacturing Engineering and Production teams evaluated our tool usage for
difficult material of Orbit Stems:

• Significant improvement in metal removal rate (11.5 cubic in/min to 20.1

cubic in/min) resulting in a 20% improvement in overall cycle times.

• Extended tool life from 1 part/tool to 3 parts/tool resulting in annual tool

savings

This improvement approach is being applied to other components with standard labor and tooling savings

• Orbit Cam 6A-718 & 660

Materials
• Orbit Stems 8620 Material
• Orbit Bodies
• General Valve Slips

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 Orbit Core Welding- Welding Cycle Time Improvements
Old weave technique with equipment issues
Old PTA welding equipment
 16”-24” Weld engineering project – throughput
improvement
• New parameters have improved FPY on 24”
cores to 95%
• New stringer weave technique, pre-heating
temperature, cooling time
 Evaluating 16”-24” Single layer overlay design -
reduction of labor and weld material
Stringer-weave technique with new
parameters
• Will reduce the cycle time of welding and
material needed
 New weld equipment – labor, rework, and material
savings – Q3 Implementation
• Will improve lead times for welding with
inductive heating and trunnion welding
Newly designed PTA welding equipment
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Assembly Kitting- Assembly Cycle Time Improvements
Current Status:
• Implemented for Orbit Small Bore, Orbit Large Bore, and
General Valve
• Delivering full valve kits to assembly rather than
individual components
• Already seeing 30% CT reduction in assembly build
times

Benefits:
• Supports future growth and Assembly Layout
improvement
• Reduces WIP and other Non Value Added activities in
assembly
• Improved lean flow – one piece flow
• Better schedule attainment

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Plant Transformation- Visual Factory

 Lighting

 Machine Painting

 Floor Painting and repair

 Machine skirting

 New work cell signs

 Digital SFDM boards

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Plant Transformation- Warehouse Improvements
 Kitting

 New scanners and

barcodes

 Increased shelf capacity

 New Warehouse

 Additional racks

 Optimized storage
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Plant Transformation- Improvements Everywhere

Digital SFDM Boards Customer Inspection Office Upgraded Test Camera System

Expanded Tool Crib Digital Kitting/WH Pick List Ergonomic Point of Use Racks

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Plant Transformation- Improvements Everywhere

Digital SFDM Boards Customer Inspection Office Upgraded Test Camera System

Expanded Tool Crib Digital Kitting/WH Pick List Ergonomic Point of Use Racks

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