42 thousand servers. 295 megawatts of power. zero margin

THE SCIENCE OF CERTAINTY. / www.connectpositronic.com1

MAR 2019

IN THIS ISSUE

Strategic Initiative Update

1 Kaizen Update

Sales Success Story 4 Houston…Positronic

Connectors are on their Way to the Moon!

Did You Know 7 Supply Chain Management:

Warehouse/Inventory at PIMO

Global Moments 3 Positronic and Crown

Exchange Business Skills 6 Positronic Participates in

Missouri Association of Manufacturers Panel

6 Smart Grid Expo 2019 9 Annual Award Lunch at PAPL

Kaizen UpdateOur Kaizen Teams are still active and bringing excellent contributions to our strategic initiatives. Here is an update on some of the latest efforts:

• Reduced setup times by 50%

• Increased utilization by 20%

• Savings of $126K in FY 2019 seen in increased overhead absorption in Department 66

STRATEGIC INITIATIVE UPDATE

Continued on page 2

42 Thousand Servers.295 Megawatts of Power.Zero Margin of Error.

the POSITRONIC GLOBE

Eldon CNC Setup Time Reduction Team

David Wrede, Jason Lantz, Jordan Summers, Chris Cordova, Randy Dean, Joe Hurst

3THE SCIENCE OF CERTAINTY. / www.connectpositronic.com 2

STRATEGIC INITIATIVE UPDATEContinued from page 1

Eldon Subassembly Posiband Contact Throughput Improvement Team

Mt. Vernon Thermoset Mold Setup Time Reduction Team

Campbell InventoryReduction Team

Campbell PlatingSort Reduction Team

Eldon Assembly PressSetup Time Reduction Team

Left to right: Front row - Angela Hernandez, Nikki Horton. Back row - Casey McDaniel, Kodi Horton, Cheston Jennings.

Robert Zimla, Casey McDaniel, Jordan Summers, Justin Bray, Randy Caudill, Joel Loveland

Audrey Gottsleben, Windy Cooper, Miranda Bordwell, Jessica Manuel, Tammy Nichols, Bobbi Bray

Kevin Jones, Angela Zay, Tara Long, Cody Fossett, Geoff McFarlin, Mark Cumpton

Chris Denny, Rob Bell, Rachel Davidson, Ryan Stewart, Allen Pretz

• Doubled throughput of PosiBand contacts by restructuring, standardized training, and improved tooling

• Savings of $148K in FY 2019 seen in increased overhead absorption in Department 82

• Reduced setup times from 4 hours to less than 1 hour

• Identified $2 million in inventory with no demand

• Eliminated machine defect sorting at plating

• Reduced setup times by 50% • Savings of $68K in FY 2019 seen in increased

labor efficiency in Department 81


Positronic and Crown Exchange Business Skills As part of a 2019 skills development plan, the Positronic management team in Auch participated in an educational exchange with the Crown company, located in Périgueux. Crown is a leading supplier of packaging products to consumer marketing companies around the world.

The purpose of this exchange was to experiment with cultural differences, learn about American culture, and think about ways of improving working relationships.

First, the Positronic management team went to meet the Crown management team on 22 January 2019. For the full-day program, Positronic visited the Périgueux production site and participated in several working groups to share everyday business challenges.

In return, on 19 February 2019, the management team of Crown came to visit the Positronic site in Auch. After the visit to the Positronic site, and before the constitution of new working groups, the Crown team and Positronic management team were challenged to assemble spring clips and retainers on contacts.

The experience was very enriching for everyone, and new relationships were created between the two companies' counterparts.

PISAS/GLOBAL MOMENTS


Positronic and our Authorized Distributor partner in Israel, Bos Odem, can be very proud. We will have a part in history.

Our space grade connectors have been designed and assembled on a system that is part of an Israeli Spacecraft, bound to land on the moon.

There are three Positronic connectors onboard this system:

SDD62S4B30T2G SDD78S4B30T2G SDD62M000E2G

For one brief moment last week, the world looked up towards the heavens. In the night sky above, a tiny spacecraft named, Beresheet, Hebrew for "Genesis", lifted off from Cape Canaveral and into the record books.

This was not the work of NASA or the European Space Agency, but from an upstart collective from Israel, called SpaceIL. Featuring a menagerie of mavericks – including a drone maker, a cancer researcher, and a water park magnate – their audacious attempt launched in February.

So why is this launch such a big deal? Read on...

Assuming the mission is a success, Israel will become only the fourth nation to ever land on the moon, following Russia, the U.S., and China. That is pretty impressive for a country about the size of New Jersey. With about $100 million in donations, it will also become the first-ever privately funded lunar landing. Instead of being funded by a government agency, the money came from tech companies, local universities and a group of dedicated philanthropists – including marine park mogul Morris Kahn, who contributed $40 million to the cause.

Israeli entrepreneurs Yonatan Winetraub, Yariv Bash, and Kfir Damari came up with the idea for their spacecraft late one night at a bar by the Mediterranean Sea. "As the alcohol level in our blood rose, we got more and more determined to do this," Winetraub recalled during a recent interview with From The Grapevine. "And it never faded away." Nearly a decade later, that booze-filled dream has become a reality.

The trio of technologists first entered their idea into the

SALES SUCCESS STORY

Houston…Positronic Connectors are on their Way to the Moon! by Nir Harpaz, Europe Sales Manager

Continued on page 5


Google LunarX Prize back in 2007. The Silicon Valley giant was offering $20 million to the first team that could land on the moon and send back high-definition pictures. Google extended the deadline multiple times hoping for an eventual winner, but to no avail. None of the dozens of teams who entered the contest could make it. So, Google finally called off the cash competition in early 2018. However, SpaceIL was just months away from finishing construction, and they kept working from a factory in Israel. The machine was finished late last year and was then shipped to Cape Canaveral in January, where additional last-minute testing was conducted before the launch.

Early estimates put the Beresheet at about the size of a kitchen dishwasher, but Winetraub told us it is closer to a smart car, which is still not large by space standards. Indeed, it is likely the smallest spacecraft ever designed for a lunar landing. Aboard the ship will be tools to conduct scientific research on the moon, as well as a

time capsule containing drawings by Israeli children and MP3 files of Israeli music. "It is very possible that future generations will find this information and want to learn more about this historic moment," Winetraub mused.

Launching a ship into space can be cost-prohibitive, so the Beresheet is hitching a ride aboard the SpaceX Falcon 9 rocket. "It's more like a ride-share," Winetraub told us, comparing it to an Uber Pool. "There are passengers in the front seat and passengers in the back seat all going up to space." The rocket will drop off various satellites and other space equipment first and the Israeli spaceship will be the final passenger dropped off. But even then, it still has a way to go on its own before it reaches the moon. The normally three-day adventure will take closer to two or three months. It is expected to make its lunar landing around late April.

Besides just landing on the moon, the ship is scheduled to conduct scientific research. A retro-reflector from NASA was installed on the spacecraft, which is an instrument that reflects laser beams, and will enable NASA to precisely locate the spacecraft on the lunar surface after the landing. SpaceIL, the Israel Space Agency, also agreed that NASA will have access to the data gathered by the magnetometer installed aboard the Israeli spacecraft. The instrument, which was developed in collaboration with Israel’s Weizmann Institute of Science, will measure the magnetic field on and above the landing site.

SALES SUCCESS STORYContinued from page 4

The spaceship was driven from the factory to Israel's Ben Gurion Airport, where it was packed into a cargo plane.


Positronic Participates in Missouri Association of Manufacturers PanelThe Missouri Association of Manufacturers held its annual Gearing Up Conference on 6 February 2019. Positronic President, Greg Rocque, was invited to participate in the Manufacturing Matters speaker panel during the event. The panel consisted of a discussion between influential executive leaders as they discussed hot topics facing the manufacturing industry, such as technology, security, workforce, and leadership. The discussion was followed by an interactive Q&A from the audience.

Smart Grid Expo 2019The International Smart Grid Expo is Japan's largest international exhibition showcasing various cutting-edge technologies and products related to smart grid and smart communities. It is held twice a year in Tokyo (February) and Osaka (September.). Positronic participated in the latest expo, held 27 February – 1 March 2019. The event included educational conference sessions and a trade show, where companies displayed their products. Attendees were able to view a variety of Positronic connectors at our booth and discuss opportunities with our Sales team. Our Sales team is now following up on those discussions to collaborate on new projects where our connectors can be utilized.

PIMO/GLOBAL MOMENTS

PAPL/GLOBAL MOMENTS


The Warehouse/Inventory function is an important piece of the supply chain. The warehouse group provides raw materials and components to the production departments, receives materials from our suppliers, and maintains the accuracy of the items stored in each warehouse location. Positronic has warehouses in all three of its Missouri facilities. Each warehouse supports production in that facility.

At the Campbell facility, our warehouse staff supports the Plating Department. They receive less-finished components from Eldon, stock the warehouse shelves, complete cycle counts, issue less-finished components to be plated, as well as receive and transfer plated components to our Eldon location.

At the Eldon facility, our warehouse staff supports two production areas with two shifts. On the day shift, we operate in teams, and we have four teams.

The warehouse team pulls requisitions for the Assembly and Sub-assembly Departments, delivers raw materials to the machining areas, loads and unloads trucks, delivers components between the various locations in Missouri, receives components and finished goods from internal departments, and restocks the warehouse shelves.

The Eldon sales order/job team supports our assembly and sub-assembly areas, our sister locations (Campbell and Mt. Vernon), and third-party customers. They pull jobs to deliver components to the sub-assembly and assembly areas. They pull sales orders to support the component needs of our sister locations and finished goods for our customers.

The other two day-shift teams at Eldon are the packaging team and the shipping and receiving team.

Our packaging team packs all orders for shipment with appropriate packing material to protect the product.

DID YOU KNOW

Left to Right: Front row - Cookie Dalton, Lissie Watts. Back row - Larry Smith, Candi Ramirez, Jackie Combs.

Left to Right: Front row - Rick Abney, Amanda Bell, Jana Peck, Lindsey Carroll, Joe Davidson. Back row - Kathy Gleason, David Berry, Scott Mead, Tyler Haines.

Campbell Warehouse Team

Eldon Warehouse Team

Supply Chain Management: Warehouse/Inventory at PIMO

Left to Right: Front row - Savanna Lodwick, Jamika Lamoreaux, Mindee Chandler. Back row - Susan Lusk, Stephanie Yates, Brian Barton, Jordan Henry (not Pictured: Patricia Lynch).

Eldon Job and Sales Order Team

Continued on page 8


Each box contains a packing slip that lists the quantities of each product contained in the box, so the recipient of the package knows what should be in the box.

The receiving staff processes all incoming items from our third-party suppliers and components from our sister locations. The shipping team processes the shipments through our shipping system. We currently ship 213 lines per day on average – 80 to customers and 133 to our sister locations.

We also have a second shift at Eldon that supports the production areas by pulling components and raw materials.

In Mt. Vernon, the warehouse team supports the Molding Department and PosiShop. They stock the shelves with moldings produced in Mt. Vernon and send moldings to Eldon when job and sales orders require them. They also pull sales orders to ship to customers from the Posishop stock that is in Mt. Vernon. Additionally, they perform cycle counts and receive the items stocked in PosiShop.

One thing that is very important to supplying our production areas and customers is that we deliver the right parts and quantities that are needed. We use cycle counts to verify that our inventory is correct. Daily, parts are selected to be counted and we track the accuracy of our inventory monthly. Inventory accuracy at Campbell is currently at

100%, Eldon components and finished goods warehouse is at 98.1%, Eldon raw materials inventory is 99.9%, Mt. Vernon is at 99.3%, and PosiShop is at 97.7%.

We also look at the jobs and orders that are pulled. At Campbell, approximately 60 plating jobs are pulled each day. At Eldon, approximately 100 jobs and 137 sales orders are pulled from stock each day.

Jeff Bass, Logistics Manager, and Bobbie Bray, Inventory Supervisor, coordinate the efforts of the warehouse teams at the Campbell, Eldon and Mt. Vernon warehouses.

DID YOU KNOW

Left to Right: Front row - Audrey Gottsleben, Rhonda Roller, Angela Robinson, Shelly Lee Back row - Hope Brophy, Naomi Kreuger

Nicole Daniel, Scott Faulkner, Lacquin Linder

Johnna Plybon, Marion Walters (having some fun with SnapChat filters)

Bobbie Bray, Inventory Supervisor

Pam Riley, Allison Pearson, Melissa Steele, Tony Carrol (not pictured Isaac Titus)

Eldon Packaging Team

Eldon Shipping & Receiving Team

Mt. Vernon – PosiShop and Warehouse Team

Continued from page 7

Eldon Second Shift


Annual Award Lunch at PAPL On 1 February 2019, at our PAPL location, KC Ng, site leader, presented perfect attendance awards, years of service awards, and acknowledged employees who were promoted in 2018. During the award celebration, PAPL catered a Chinese New Year buffet lunch and shared the broadcast of the State of the Company meeting video presentation to all employees. The award lunch serves to recognize all employees for their efforts and hard work throughout 2018.

PAPL/GLOBAL MOMENTS

Pictured below are PAPL's 5, 10, 15 and 20 Year Service Awards, Perfect Attendance and Promotion Recipients.

Continued on page 10


PAPL/GLOBAL MOMENTS





PAPL/GLOBAL MOMENTS



Visit our intranet to stay up-to-date on the latest news

and information!connectpositronic.com/intranet

password: kaizenA password is required for those logging in

outside of the company.

Please note: we change the password periodically.

HR ANNOUNCEMENTS

HOLIDAY SCHEDULE

Schedule all divisions from 16 Mar to 15 Apr 2019

• Wednesday, 20 Mar 2019 - Dhulivandan (IN)

• Wednesday, 03 Apr 2019 - Isra Mi'raj (ID)

• Friday, 05 Apr 2019 - Tomb-Sweeping Day (CN)

Legend: CN-China; ID-Indonesia; IN-India

Visit our Intranet for more annoucements.

42 thousand servers. 295 megawatts of power. zero margin

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