general electric lighting january 10, 2006. ge lighting lee lagomarcino - commodity leader rich...

General Electric LightingJanuary 10, 2006

GE LightingLee Lagomarcino - Commodity LeaderRich Calvaruso - Lean Manufacturing Leader for LightingSheila Frinak - Global Sourcing Manager for LightingDel Cofield - Six Sigma Leader for Lighting

MalnoveMark Dietrich GE Lighting Account ManagerBruce Dalrymple Product Development ManagerMike Querry Vice President Midwestern Regional SalesDon Scott Vice President Eastern Regional Sales

Director of New Product Development and Innovation

General Electric and Malnove IncorporatedMeeting Attendees

Imagine, solve, build and lead - four bold verbs that express what it is to be part of GE. Their action-oriented nature says something about who we are - and should

serve to energize ourselves and our teams around leading change and driving performance.

General Electric

“We believe we can help improve theenvironment and make money doing it”

GE Chairman Jeffrey Immelt

GE & Sustainability

"Ecomagination is the convergence of economic and social needs with the unique skills of GE. Business, and society in general, need lower-cost, cleaner and more secure energy, along with cleaner, more abundant sources of usable water. GE's combination of leadership technologies, operating skills and global reach make us uniquely qualified to help solve these problems. Ecomagination is about meeting customers' needs today with our current products, but it's also about the future. We will work with customers, governments, and other thought leaders on developing tomorrow's solutions, including renewable energy technologies, hybrid locomotives, low-emission aircraft engines and water purification equipment. And we will make money doing it."

GE & Sustainability

GE Chairman Jeffrey Immelt

“Joint Process Improvement”…deliver “long-term and compounding”

economic value to the customer’s business…

“Joint Process Improvement”…deliver “long-term and compounding”

economic value to the customer’s business…

Malnove’s “Platforms of Competency”

Intelligent design based on the three (3) tenets of sustainability:

- Economic (profitable)

- Social (empowerment)

- Environment (ecologically regenerative)


Total Packaging SolutionBased Business Strategy


Malnove asks questions…and delivers the“Best Total Packaging Solutions”

How do you become truly intimate with your customer so you can consistently deliver value?

Isn’t adding value really about a focused (continuous) commitment to making true process and product improvements….that deliver “long-term and compounding economic benefits” to our customer?

Critical to our success is the ability to ask our associates, customers and prospects (3) simple questions, carefully listen and document their responses, and most importantly...develop and document action plans based on individual and/or collective needs.

1) What is working for you today? (Current Reality)

2) What is not working for you today? (Latent or Real Pain…”The Gap”)

3) If you could change something, what would it be? (Future Vision)

…”We are in fact “raising the bar” for ourselves by looking at new markets, new products, new ideas and new packaging methods that will improve the customer’s bottom line and ours as well”…

Paul Malnove CEO Malnove

Malnove’s Core Business Philosophy is based on focusing on excellence in the specific dimension of

value known as “Customer Intimacy” (ie. “Best Total Solution”)

1) Provide the Best Offering in the market place by excelling in one of the three Specific Dimensions of Value.

2) Maintain Threshold Standards on other dimensions of value.

3) Dominate your market by improving value year-after-year.

4) Build a well-tuned Operating Model “dedicated” to delivering unmatched “customer” value.

BEST TOTAL COST (OPERATIONAL EXCELLENCE)

By OPERATIONAL EXCELLENCE we mean providing customers with reliable products or services atcompetitive prices ~ delivered with minimal difficulty or inconvenience.

Operationally Excellent companies provide middle-of-the-market products at the best price with theleast inconveniences. Their proposition to customers is: Low price and hassle-free service.

• McDonalds• Costco

• Wal-Mart

BEST PRODUCTS(PRODUCT LEADERSHIP)

By PRODUCT LEADERSHIP we mean providing products that continually redefine the state-of-the-art.

Their proposition to the customer is an offer of the best product...period. They continue to innovate year after year. Competition is not about price ~ it’s about product performance.

• 3M• SONY• Intel

• Johnson & Johnson• Apple

• HP

BEST TOTAL SOLUTION(CUSTOMER INTIMACY)

By CUSTOMER INTIMACY we mean selling the customer a total solution, not just a product or service.

We specialize in satisfying UNIQUE needs which often only we, by virtue of our intimate knowledge of the customer, recognize: “Malnove has the best packaging solution for Hershey, and we will provide the support you need to achieve optimum results from the product you buy from us”.

• Clarke American• DHL Worldwide

• Nordstrom• Malnove

Any market Leader, whatever value it chooses to deliver, MUST maintain reasonable standards in the other dimensions as well.

What Specific Packaging Solutions Can We Deliver To GE Lighting, And Can We Measure The Value Of These “Joint Process Improvements”?

Malnove Packaging Solution: Malnove Packaging Solution:

• Malnove’s proprietary “small footprint” Malnove’s proprietary “small footprint” S.S.G. Technology reduces carton costs S.S.G. Technology reduces carton costs by 5-15%, while eliminating labor related by 5-15%, while eliminating labor related to servicing cartoning lines. This to servicing cartoning lines. This technology also delivers a 50% reduction technology also delivers a 50% reduction in the number of pallets in your plant in the number of pallets in your plant and related freight costs for inbound and related freight costs for inbound folding cartons or display cases.folding cartons or display cases.

Malnove SSG Theory of OperationPrefeeder Options; Folding Carton Delivery; Prebreak;

Hot Melt Application; Compression; Discharge

Malnove SSG Integration Options

What Specific Packaging Solutions Can We Deliver To GE Lighting, And What Is The Measurable Value Of These “Joint Process Improvements”?


• Malnove’s proprietary “small footprint” Malnove’s proprietary “small footprint” S.S.G. Technology combined with our S.S.G. Technology combined with our robotic folding carton handling system, robotic folding carton handling system, eliminates all ergonomic / safety issues eliminates all ergonomic / safety issues related to handling folding cartons in related to handling folding cartons in your plant.your plant.

Malnove SSG Common Options

- Bar Code Reading- Vision Systems- Defect Detection and Removal- EAS Tag Application- Security Label Application - Microembossing Anti-Counterfeiting- Item Level RFID Tag Application- ATIP HP Ink Jet Printing for SKU Reduction



• Malnove’s patented Stack-RiteMalnove’s patented Stack-Rite™™ technology allows a .002 - .010 caliper technology allows a .002 - .010 caliper reduction while delivering the economy reduction while delivering the economy of a “flat blank” packaging platform. of a “flat blank” packaging platform.



• Malnove’s patented Stack-RiteMalnove’s patented Stack-Rite™™ technology can also be applied to technology can also be applied to display trays and again is based on the display trays and again is based on the economy of a “flat blank” packaging economy of a “flat blank” packaging platform. platform.



• Malnove recently received patents on our Malnove recently received patents on our newest technology Stack-Rite II. This newest technology Stack-Rite II. This approach builds on our Stack-Rite I approach builds on our Stack-Rite I success, with compression strength success, with compression strength equal and/or superior to corrugated. This equal and/or superior to corrugated. This negates the need to use double and negates the need to use double and triple wall display corrugated at “big triple wall display corrugated at “big box” retailers - Costco, Sam’s and BJ’s.box” retailers - Costco, Sam’s and BJ’s.

Products

• Folding Cartons

• Thermoformed Plastic Solutions

• Packaging System Engineering, Installation, Training

Facilities

• (4) folding carton plants in the United States

• Malnove - Jacksonville

• Malnove - Omaha

• Malnove - Salt Lake City

• Creative Malnove - Hawaii (+ thermoforming)

Annual sales and conversion

• $135,000,000 (U.S.)

• 90,000 tons of paperboard converted

• SBS 43% SUS 31% CCNB 26%

About Malnove

Malnove Incorporated “Top 10” Customers; Markets Served; Solutions Provided

Osram Sylvania (Lighting Products; 50+ sizes; 200mm cartons; KANBAN Supply Chain Management)

Johnson and Johnson (McNeil Nutritionals; Packaging Category Manager; Full MRP Supply Chain Management)

McKee (Baked Goods; 50 SKU’s; 200mm cartons annually)

Unilever (Health and Wellness; Nutrition and RTD Products; Full MRP Supply Chain Management)

Dairy Queen International (Single Source Supplier Across 5,000 QSR’s Full MRP Supply Chain Management)

Con Agra (Prepared Foods; 500mm cartons annually; Focus on “Joint Process Improvement)

Wal-Mart (In-Store Bakery; Distribute to 1,800 Supercenters; Full MRP Supply Chain Management)

CPR Goya (Ethnic Foods; Highest Productivity Manufacturing / Packaging Plant in North America)

Interstate Brands (Baked Goods; Full MRP for 25 Plants; 225mm cartons annually; 300 Packaging Lines Installed)

Johanna Foods (Dairy Products; 12 Packaging Lines Installed; Full MRP Supply Chain Management)

Malnove Incorporated Folding Carton Operations

Salt Lake City, Utah

Omaha, Nebraska

Jacksonville, Florida

9 Sheet Fed Offset Presses3 Web Flexo Presses1 Rotogravure Press

4 Thermoformers

Honolulu, Hawaii

Malnove Printing Equipment

Jacksonville: Litho-Sheet fed offset - 3 presses, 7 color, 50” & 7 color 55” Flexo-Web fed - 2 presses, 4 and 6 color, 45”

Omaha: Litho-Sheet fed offset - 4 presses, 2-6 and 2-7 color, all 55” Flexo-Web fed - 1 press, 6 color, 45” Rotogravure-Web fed - 1 press, 8 color, 44”

Utah: Litho-Sheet fed offset - 2 presses, 1-7 color 55”, 1-7 color 50”,

Malnove Over Fifty (50) Years Of Experience

1948 Malnove Inc founded in Omaha, Nebraska

1976 Malnove opens a new plant in Omaha

1981 Malnove purchases plant in Jacksonville, Florida

1988 Malnove purchases plant in Salt Lake City, Utah

1995 Malnove begins planning & design of new plant in Jacksonville

1998 Malnove establishes a joint venture with Europa Carton

1999 Malnove starts up new 250,000 sq ft plant in Jacksonville

2005 Malnove Completes (3) Year - $35mm Capital Project

Malnove Mission

The goal of our corporation is to consistently exceed our customer’s expectations.

Our people are our most valued asset.

Our business is built around our customer’s needs.

Malnove Business Philosophy

Our Customers needs determine how we think about:

Our Overall Business

Plant Capabilities

Full-Service Support

We strive to align our resources with your needs.

We demonstrate this in many ways a comprehensive approach to packaging:

Package Design & Graphics

Packaging system audit & effectiveness

Packaging equipment Engineering

Packaging equipment Support

Research & Development

Malnove Business Philosophy

Malnove Business Strengths

National Capability

We are “Market Driven” by our Customers needs

We offer a comprehensive approach to packaging solutions rather that selling “what is on the shelf”

Long term partnership agreements with board manufacturers of all substrates

Employ all major printing technologies: Offset, Rotogravure and Flexography

Malnove Business Strengths

A strong entrepreneurial spirit

Total quality management

Commitment to state-of-the-art equipment & systems

Mechanical packaging systems

Development of new technology, systems and packaging concepts

Malnove Specific Evidence Of Strengths

Continuous capital investment in our folding carton operations—one of the newest plants in US

Total Quality management - Stochos quality management data base is thefoundation of our common quality system in our three plants.

Full service mechanical packaging systems-we have over 900 systems installed to-date.

Commitment to ongoing training

Development of innovative production processes and packaging lines

Long term partnership agreements with board manufacturers of all substrates

Malnove Specific Evidence of Strengths

Utilize latest technology available in our industry.

Consistent preventive maintenance system.

New product development / innovation - StackRite tm is our latest development.

A focus on Joint Process Improvement.

Malnove Specific Evidence of Strengths

Malnove Quality Assurance

Corporate Quality Policy

* To consistently exceed our customer’s expectations.

* Our people are our most valued asset and accept this challenge daily.

* This is done by focusing on the process, not by focusing on results alone.

Corporate Quality Manager — Reports to Chairman

Consistent Quality Direction / Systems in all plants

Plant Quality Team — Process Audits / Variables Control

Operating Personnel — Variables Test / Process & Product Control


Stochos Quality Management Database

• Terminals at each process—input and monitoring.

• Hourly Operators perform checks, input data and monitor product using the system.

• Provides excellent traceability.

• Strong Quality Action Report process.

• Control charts-real time.


Standard Operating Procedures

• Built on ISO 9000 standards.

• Operations are controlled using SOP’s.

• SOP’s in place and kept current.

• SOP’s are at each Machine.

• Employees have SOP’s as part of job training.


Two year quality plan / schedule for continuous improvement:

•Customer Focus

• Training-continuous

• Color control & X-Rite

• SPC-Process Capability

• Quality measures / improvement


Malnove Corporate Quality Policy

The goal of our corporation is to consistently exceed our Customer’s expectations. To attain our goal we strive to make every Customer, Vendor and Malnove Associate a partner in our business. From receipt of raw materials and throughout each conversion process, every detail of our business is scrutinized to be continually improved in order to delight our Customers with our product. Malnove remains a quality leader through continuous improvement techniques. We strive to continually improve our quality while reducing our costs. This is done by focusing on the process, not by focusing on results alone.

Our people are Malnove Incorporated’s most valued asset and accept this challenge daily:

To consistently exceed our Customer’s expectations.

Paul Malnove, ChairmanBruce Marro, Corporate Quality Manager

Malnove Quality Assurance / Other

• American Institute of Baking (AIB)Jacksonville Overall rating in February 2005--SUPERIOR 975 RATING

Omaha Overall rating in March 2005--SUPERIOR 905 RATINGSalt Lake City Overall rating in May 2005--SUPIRIOR 925 RATING

• Supplier to Medical Devices industry/food industryGMP / QS capable

• Customer Specific Requirements:Certificate of Analysis

FG evaluation-AQL’s, MIL-STD 105-E

• Excellent traceability and line clearance.Stochos-electronic data-maintained 7 yrs.

• Preplanning-contract review / order reviewAll pertinent disciplines involved

Packaging & Packaging Systems Create Value

Product Development - Malnove is constantly searching for new ways to deliver convenience, value and the environmental attributes in demand by today’s consumer. As an extension of the customer’s product development team, Malnove provides the experience and technology to create the industry’s most advanced paperboard packaging.

Innovation examples:

• Optical Lens Packaging Patented package secures & protects Source / Labor reduction

• Carton Converting Insert and score window film Single pass operation-multiple functions Saved $1,000,000 annually

• Stack Right™ Carton Design Allows .002-.004 caliper reduction Eliminates case packing cost

Packaging & Packaging Systems Create Value

Malnove Structural Design Capabilities

Develop initial concept, modify existing structure to improve converting processeffectiveness, reengineer existing structure to improve “effect-in-use”.

State of the art CAD CAM hardware and software.

Continuous electronic process from design to production.

Produce a “Prototype” of proposed carton.

Packaging Systems Engineering Support

• Carton performance is, in part, determined by machinability.

• Applying knowledge of product, carton and machine application,Malnove integrates new or existing equipment to satisfy requirements.

• Our people create effective packaging solutions.

• Select, customize and install new or used equipment.

• Application consulting

• Educational training

• Project Management

• On-going service support

• Emergency field service 24 hours / day

• Carton / Machine auditsDesign - Machine ability - Carton functionality - Carton troubleshooting - Efficiency

Packaging Systems Engineering Support

Malnove Packaging Systems Offers Quantitative Benefits.

• $ Savings

• Fast track product introduction

• After warranty field service

• Field technicians are recognized as best in industry

• Reduced lead time to receive machinery

• Investigate used equipment

• Reduced start-up time means faster cash flow

• Efficiency audits

Malnove Package Performance Testing

Malnove’s alliance with companies such as Riverwood International; The Institute of Paper Science and Aspen Research Labs provides progressive research and development resources and activities. We also sponsor package development and testing at The Packaging School at the University of Florida.

State-of-the-art analytical services help solve packaging problems, refine processes, and explore new packaging opportunities.

• Fingerprint, identify and quantify unknowns using enhanced detection capabilities.

• Provide problem-solving expertise at Malnove operations.

• Pre-manufacturing evaluation of new materials and processes.

• Evaluate, screen and benchmark ink/paperboard coating performance.

• Develop innovative test procedures such as FDA extraction, currently used in food packaging.

• Provide barrier information and simulated aging test.

Malnove Package Performance Testing

Malnove Printing Capabilities.

Printing Processes

Sheet-Fed Offset Lithography Nine( 10) presses

Web-Fed Flexography Three (3) presses

Rotogravure One (1) press

Printing Process Features

40”, 50”, 55” widthsSemi-automated make-ready capabilityPattern in-line coatingPerfectingOffset printing up to 7 colors

Environmentally friendly water-based inks and coatings (up to 6 colors)Back side grease barrier coatingsConsistent in-line cutting attributesMultiple site process capabilitiesOn-press collating

8-color capability2-color perfecting Print metallic, fluorescent, pearlescent inksGrease barrier coatingsMold resistant coatings

Malnove Cutting Capabilities.

Platen Cutting Processes / Benefits

• In-House laser die manufactureLow cost entry to marketplace is immediate, enhancing speed to market.

• Steel dies and counter platesGreater productivity, longer die life, consistent scoring attributes.

• Embossing / DebossingEnhances graphics and impact of “facing” at P.O.P.

• Blanking capabilitiesIncreases throughput and decreases lead-time.

Malnove Finishing Capabilities.

Finishing

• Straight-Line Gluing

• Right-Angle Gluing

• Leary Glue Detection Systems; Vision Systems

• Bar Code scanning

• Auto Case Pack

• Electronic Case Scanning

• Standard Windowing

• Specialty Windowing (Single Lane; 2-Sided; Registered Printed Film)

• Collating

• Critical Attribute Certificates of Analysis

• Label/Coupon Attach

Malnove Major Customers / Markets

Osram Sylvania - Lighting

Con Agra - Prepared Foods

P & G - HABA

Wal Mart - Baked Goods

Prime Source - Hardware

Clarke American - Financial Printing

Keebler - Baked Goods

Revlon - HABA

Panasonic - Consumer Electronics

Becton Dickinson - Medical Devices

Thank you GE for your consideration. We look forward to putting Malnove’s Team Packaging Professionals to work for you. Our goal is to continually add long-term and compounding economic value to GE’s business through our Total Packaging Solution business strategy. The key competencies Malnove will deploy will be our focused approach on true process / product improvement, and our commitment to intelligent and sustainable package

design and development.

general electric lighting january 10, 2006. ge lighting lee lagomarcino - commodity leader rich...

Documents

economic value

new products

new ideas

new packaging methods

new markets

meeting customers

unique skills of ge

convergence of economic