Delivering Elegant Solutions to Complex Tooling Needs

Introduction

About Sierra Manufacturing

Sierra Manufacturing is a privately held first and

second generation family owned American run

tooling solutions and manufacturing firm based in San

Luis Potosi, Mexico since 1995. Our core competency

is in the production of specialty cutting tools and the

regrinding and re-manufacturing of the same. Serving

the global marketplace, we deliver the highest quality

cutting tools on time and competitively priced.

MISSION

To profitably and ethically deliver

exceptional indexable tooling

solutions at a value and in

timeframes unrivaled in our

industry.

VALUES

▪ Honesty

▪ Team Work

▪ Profesionalism

▪ Enthusiasm

VISION

To sustainably and ethically grow the most

profitable and productive indexable tooling

solutions company in the Americas. Our

commitment to delivering customer value and

continued improvement will enhance the quality

of life and independence of our employees,

customers, shareholders and client end users.

Corporate Mission, Vision and Values

Core Competency

Indexable Tooling Solutions

Value PropositionCarbide/Cermet

Ceramic

PCD

CBN

Elegant Solutions

Speed to Market

Value Always Quality

Specials

Regrinds and

Remanufactured

Our Clients

Sierra Manufacturing provides

tooling solutions to some of the

largest players in the automotive,

aerospace and cutting tool business.

We source and choose our clients

judicially to ensure we can always

delivery on our client Value

Proposition. Around 95% of our

business is direct to end user with

the remaining 5% being distributor

or private label.

Competitive Landscape

Sierra successfully competes head to

head with all of the major global

cutting tool suppliers. We pride

ourselves on delivering tools as good

as or better than companies with

larger brand recognition. We believe

in delivering elegantly simple

solutions to your complex tooling

needs.

Our Products and Services

Craftsmanship and Design Elegance

Specials

Sierra specializes in specials. We design, manufacture and roll-out

special cutting tools delivering simple solutions to complex problems

faster and more cost effective than any major industry player.

FROM CONCEPT TO PROTOTYPES IN AS LITTLE AS 6 WEEKS.

Sierra Delivery

Industry Average

Delivery

6 weeks

12 weeks

Regrinds and Remanufacturing

Sierra delivers immediate cost savings to you by

using the materials and geometries you know

work. Our regrinds perform like new for a

fraction of the price. We process thousands of

regrinds monthly with controlled processes

throughout the manufacturing process. We have

the ability to regrind and remanufacture tooling

in carbide, ceramic and CBN including many

irregular shapes.

Regrind and Remanufacture Life-Cycle

DeliveryPick Up

Sorting and Pre-Fabrication Inspection

FabricationCoating

Final Inspection

Regrind Savings

Regrind and Remanufactured Tool Savings Examples

New Regrind/Remanufactured Type % Savings

Ceramic

6 Tooth Groover 6 Tooth Groover

Regrind

56%

VDB 250 VDB 250 1st, 2nd, 3rd 64%

CNMX 454 CNMX 454 1st, 2nd, 3rd 53%

6 Tooth Groover 4 Tooth Groover

Remanufactured

75%

4 Tooth Groover 3 Tooth Groover 72%

CNMX 454 CNGN 434 60%

Ceramic Avg. Savings 63%

CBN

CCGW09T308 CCGW09T308

Regrind

67%

DNGA 433 DNGA 433 69%

CNGA 433 CNGA 434 69%

CBN Avg. Savings 68%

Carbide

SPC 636 SPC 636Regrind

68%

VDB 250 VDB 250 80%

SPC 636 SPC 533

Remanufactured

70%

SPC 533 SPC 432 66%

TPG 532 TPG 432 50%

Carbide Avg. Savings 67%

AVERAGE SAVINGSVS.

NEW

67%

Standard Inserts

While specials and regrinds are our

core competency, we offer an extensive

range of standard inserts in all

geometries, materials, grades, coatings

with and without chip breakers for all

your turning and milling needs.

Tooling Accessories

In addition to our cutting tool line, Sierra offers the gamut

of indexable cutting tool accessories including screws,

clamps, shims and tool-holders many of which we have in

inventory.

Logistical Infrastructure

Focus on Operational Excellence

Order Management

Sierra is a data driven company. To meet our client’s high standards, we employ sophisticated integrated tools to

track and manage customer rep response times, production planning, raw material orders, inventory

movements, process efficiency, job cost, quality and lead times all in real time.

Delivery and Response Time

▪ In 2016 90+ % of orders were shipped early or on time in under 30 days

▪ 93% of all customer inquiries are responded to in 1 business day or less

0.00

5.00

10.00

15.00

20.00

25.00

0%

20%

40%

60%

80%

100%

120%

Da

ys

On

Tim

e D

eliv

ery

%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

Avg. Delivery 11.55 7.14 10.29 17.63 19.99 13.30 14.11 10.36 10.29 13.43 20.57 11.07

Early 65% 25% 58% 68% 47% 95% 99% 78% 85% 90% 81% 80%

One Time 1% 22% 30% 26% 47% 5% 1% 22% 15% 8% 12% 8%

1 Week 28% 52% 12% 3% 5% 0% 0% 0% 0% 2% 7% 4%

2+ Weeks 6% 2% 0% 3% 2% 0% 0% 0% 0% 0% 0% 7%

Average and On Time Delivery

0h to 1h46%

1h to 3h20%

3h to 5h0%

5h to 8h0%

8h to 12h0%

12h to 24h20%

1 day to 2 days7% 2 days +

7%

Customer Response Time

Quality Assurance

All orders are continually monitored throughout the fabrication process as well as during final inspection. All work orders

are serialized and mapped to a unique inspection process with a unique ID. Defects greater than or equal to 2% are

reviewed weekly as part of a continual process improvement plan.

Secure IP Platform and Blueprint ManagementSierra values the protection of it and its clients’ Intellectual Property. All blueprints and sensitive documentation are

stored via the BlackBerry Workspaces encrypted collaborative workspace which permits file tracking and protection

on and offline at the IP level.

Blueprints are attached at the order level. Sequenced and revision changes are managed procedurally and

systemically.

ISO 9001:2015 Certification

Sierra is in the process of rolling

out ISO 9001:2015 certification

with an estimated completion

date of Q4:2017. At this point the

majority of all our suppliers are

ISO compliant with our end goal

being full ISO compliance up and

down the supply and

manufacturing chains.

Results Delivered

Case Studies in Success

2017 Forecasted and 2016 Actual Client Savings

REAL WORLD YEARLY SAVINGS EXAMPLES

Integrator 1 Integrator 2Tier 1 Supplier 1 Tier 1 Supplier 2

Site 1 - Mexico Site 2 - Mexico Site 3 - USATool Type All Site Savings

Site 1 - Mexico

Total Site Savings Site Savings Tool Type Site Savings Tool Type Site Savings Tool Type

Tool 1 $ 40,000 $ 40,000 $ 40,000

P

C

D

N

e

w

$ 120,000 $ 35,445

Carbide Special

$ 25,563

CBN Regrind

$ 1,762

Ceramic RegrindTool 2 $ 25,000 $ 25,000 $ 25,000 $ 75,000 $ 2,619 $ 16,734 $ 425

Tool 3 $ 25,000 $ 25,000 $ 25,000 $ 75,000 $ 1,057 $ 8,063 $ 310

Tool 4 $ 20,000 $ 20,000 $ 20,000 $ 60,000 $ 1,033 $ 4,925 $ 325

Tool 5 $ 9,500 $ 9,500 $ 9,500 $ 28,500 $ 778 $ 7,997

Ceramic Special

Tool 6 $ 7,700 $ 7,700 $ 7,700 $ 23,100 $ 684 $ 4,484

Tool 7 $ 5,500 $ 5,500 $ 5,500 $ 16,500 $ 18,120

Carbide Regrind

$ 2,720

Tool 8 $ 5,500 $ 5,500 $ 5,500 $ 16,500 $ 17,647 $ 2,993

Tool 9 $ 5,000 $ 5,000 $ 5,000 $ 15,000 $ 17,619 $ 1,396

Tool 10 $ 5,000 $ 5,000 $ 5,000 $ 15,000 $ 14,821 Carbide New $ 2,673

Tool 11 $ 3,000 $ 3,000 $ 3,000 $ 9,000 $ 816

Tool 12 $ 2,800 $ 2,800 $ 2,800 $ 8,400 $ 685 Ceramic Standard

Tool 13 $ 550 $ 550 $ 550 $ 1,650

Total $ 154,550 $ 154,550 $ 154,550 $ 463,650 $ 109,822 $ 55,284 $ 26,586

ZF-TRW: Carbide

$0.0080 $0.0085 $0.0090 $0.0095 $0.0100 $0.0105 $0.0110 $0.0115 $0.0120

1

2

3

4

CPU

SPC

63

6 E

dg

es

1234

Sierra $0.0090$0.0090$0.0090$0.0090

Competitor $0.0120$0.0120$0.0120$0.0120

SPC 636 CPU Savings Sierra New vs. Competitor

1 2 3 4

Sierra 1200 1200 1200 1201

Competitor 850 850 850 850

800

850

900

950

1000

1050

1100

1150

1200

1250

Too

l Lif

e

SPC 636 Edges

Sierra SPC 636 Tool Lifevs. Competitor

Sierra Competitor

American Axle: CBN Regrind

$-

$0.01

$0.02

$0.03

$0.04

$0.05

$0.06

$0.07

$0.08

$0.09

1 2 3 4 5 6 7 8 9 10 11 12 13

CP

U

Cutting Edges Tested

DNGA 433 CBN Regrind CPU SavingsNew vs. Regrind

Sierra Competitor

$-

$0.01

$0.02

$0.03

$0.04

$0.05

$0.06

$0.07

$0.08

1 2 3 4 5 6 7 8 9 10 11 12 13 14

CP

U

Cutting Edges Tested

CCGW CBN Regrind CPU Savings

New vs. Regrind

Sierra Competitor

PSMi GM SLP: PCD

5,000

5,000

5,000

3,000

15,000

10,000

30,000

30,000

14,220

14,220

14,220

9,000

21,350

17,830

35,000

35,000

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

PT32A07715

30039802

30085707

30085688

CCGT09T308F01L1LA

CCGT09T308R1LD

PT32A07625

PT32A07626

Sierra PCD Tool Life vs. Competitor

Sierra Competitor

Sierra offers the gamut of cutting tool solutions.

For additional information, please contact us at

+52 (444) 824-1060

info@sierramfg.mx

www.sierramfg.mx