Representative Professional Portfolio 2011 - 2015

Prepared by Luigi Cusano

Table of Contents

• Expertise and Executive Summary

• Key Results

• Span of Control and Business Collaboration

• Situation (Context) / Action Plan / Results• Safety Culture Improvement Strategy• Leadership Development Program ( Q Challenge)• Strategic Master Site Plan Development and Execution• Lead Time Reduction and Business Model Alignment

• Peer feedback

Executive Summary

Passionate, engaged and resilient leader with proven ability to execute, inspire and transform organizations into safe, productive and improved value to business and customer. Outstanding ability to drive visionary strategic planning and maximizing key partnerships and relationships. Dynamic interpersonal and communications skills enhanced by strong business acumen with expertise in leading, motivating and inspiring teams to reach and exceed goals. Perfectly suited for an organization seeking an accomplished leader who has the ability to execute and drive value at all levels of the organization with a strong focus on people and customers. My dream is to create a future that "why we do what we do" is clear to all while maintaining a respectful harmony in personal lives and our work while executing flawlessly for stakeholders

Luigi Cusano

Expertise

• Senior Executive Leadership

• Manufacturing, Supply Chain, and

Quality

• Lean Six Sigma Leadership

• Enterprise revenue and margin

growth

• Strategic Planning and Execution

• Technology and Product Realization

• Business Process Engineering

• Safety and Performance Culture

Transformation

• Talent spotting and development

• Aerospace, Electronics, Specialty

Chemical and Industrial Sectors

• Doubled Oven Capacity and

Reduced VOC Emissions 50%

through Innovative Design

• World Class Capital Replacement

quadrupling Print capacity

• Advanced Lean Tools (OEE,

PQPR, PFEP)

• Removed Fear of Near Miss

Reporting

• Improved OSHA Rate from 1.9 to <1 0

• Reduced VOC emissions

• Lean Practitioner Program driving

$12mil in stakeholder value

• Managers became leaders

• Underperformers – some became

stars and some departed

• Celebrated successes

“Don't judge each day by the harvest you reap but by the seeds that you plant.”- Robert Louis Stevenson

Quality Policy Aligned to Strategy and Results

Rework improvement from 45% to <2%

Margin improvement with 3-6% material cost increase

and increased depreciation

Delivery and satisfaction index improved from 60 to

90% and 60 to 83% respectively

Key Results

2.39 2.5

1.85 1.91

0.921.17

0.95

2009 2010 2011 2012 2013 2014 2015

OSHA Injury Rate vs Goal

119140

161

201187

2010 2011 2012 2013 2014

Revenue (in millions) vs Plan

6957

92 97 92

6375

90

6375

84

2007 2008 2009 2010 2011 2012 2013 2014

Delivery(OTS)/Customer Satisfaction Index

OTS CSI

22 2220 19

23 22

0.2 0.2 1 2 3 4

2009 2010 2011 2012 2013 2014

Margin (%) vs Depreciation (Indexed)

Margin Depreciation

0

20

40

60

80

Line P Line Insert Line Cure 1 Line Cure 2Baseline 2012 2013 2014

World Class

Overall Equipment Effectiveness (OEE ) Trends

76

79

7574

75

2010 2011 2012 2013 2014

Productivity Total Plant (%)

Key Results - Continued

50700

3,500

5,5006,000

6,600

3,000

2,000

150 300

Q12011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

2014

Delinquencies ($000)

225 220250

430 415

54 54 54 56 58

2010 2011 2012 2013 2014

Labor – Direct vs Indirect

Direct Indirect

Henkel

Manufacturing Operations

Quality Assurance, Control and Engineering

Process and Manufacturing

Engineering

Planning, Material

Replenishment, Warehousing and Logistics

Facilities Engineering, Security and Maintenance

Environmental Health and

Safety

Finance

Human Resources

Project Management and Capital

Design Engineering

Information Technology

Customer Service

Hexcel

Span of Control and Business Collaboration

Henkel

Marketing, Product

Management and Sales

Global Operations /

Environmental Health and

Safety

Customer Service, Supply Chain, Strategic

Sourcing

Research and Technology

Product Development

Legal and Human

Resources

Corporate Engineering

and Advanced Manufacturing

Immediate Span of Control Business Leadership and Collaboration

Hexcel

Cross Functional Collaboration - Global Customer Interactions and Relationships

Cross Functional Collaboration - Regional and Federal Regulatory Agencies

Supplier Qualification and Negotiation

Safety Culture Improvement Strategy

• Context

• Actions

• Outcomes and Results

• 2012 a year of extreme challenge for leadership, team and individuals.

• Experienced deterioration in occupational safety, process safety, environmental compliance, process reliability and capacity shortfalls.

• We decided this was the last year of such performance shortfalls. So we asked how can we innovate to achieve our desired results?

• We wanted to be great and to do so required a strong focus on

Authentic Inspirational Leadership

Team Building

Tactics to drive the trust that catapults us up the Team Success Pyramid.

• Our journey has been a good one and we expect to be great!

Safety Culture – Context (Situation)

"I'm not certain you heard me," O'Neill continued. "If you want to understand how Alcoa is

doing, you need to look at our workplace safety figures.“

Paul O’Neill former CEO Alcoa

• Safety Logo and Tagline

• Safety Football

• Safety Challenge

•Marshmallow Challenge

• Safety Fridays

• Safety Day

•PSM / PHA

•Huddle Meetings

•Q Challenge Workshops

•Engagement

•Communications

•Training

•Vision

•Management Commitment

•Priorities Set

Safety Summit

Leadership & Safety

Teams

Team Building

Safety Awareness

Safety Culture – Strategy

Jan ‘12 Oct ‘12 Feb ‘13 Jan ‘14 Jan ‘15

• Management’s roles

and responsibilities

• Near Miss Reporting

• Objectivity (Behaviors)

Measured, Observable,

Reliable and Specific

(MORS)

• PIC/NIC• Positive Immediate

Consequence (PIC)

• Negative Immediate

Consequence (NIC)

• Effectiveness of

(MORS)

• PIC/NIC Incorporation

into management

approach

• Machine Safety

• Other

• Safety program

effectiveness

• Break out teams

identified top three

focus areas

• Communications

• Engagement

• Training

Safety Culture – Journey / Actions

Lock Out Tag Out (LOTO) Job Hazard Analysis (JHA)

Process Safety Management (PSM) 14 Elements

Lead

ersh

ipB

eh

avio

rsTo

ols

an

d

Syst

ems

Advanced Root Cause Analysis

Safety Alerts: LCDs

Risk and Hazard RecognitionFMEA / 8D

Process Hazard Analysis (PHA)

Celebrations

Leadership Development Program

• Context

• Actions

• Outcomes and Results

• Dysfunctional Leadership Team and collaboration was not a common theme

• Performance Management and Accountability not executed. Everyone had outstanding performance reviews through their careers without getting any feedback as to how they were really performing

• Goal setting was not SMART (Specific, Measurable, Achievable, Realistic, Time bound)

• Emerging Talent did not have a path for growth and development

• Problems were not being solved, symptoms were masked

• Corporate programs were not available to the leadership team and subordinates

• We decided this was the last year of such performance shortfalls. So we asked how can we innovate to achieve our desired results?

• We wanted to be great and to do so required a strong focus on

Authentic Inspirational Leadership

Team Building

Tactics to drive the trust that catapults us up the Team Success Pyramid.

Leadership Development Program – Context (Situation)

Aim high when recruiting/hiring for leadership and technical roles

Hire attitude and teach skills

Production Supervisors an Entry Level Role for Talented Engineers

Collaboration and Team Work through effective leadership programs

Q Challenge, ALP, Fierce Conversations® for Supervisors, Managers and Future Leaders

Pilot training execution and effectiveness in one key area

Encourage healthy sparring (mental martial arts)

Align oculars and actions to achieve results

Challenge and Provoke learning through setbacks

Formal mentorship

Obtain black belt in living our values

Navigate using common instruments

S.M.A.R.T. Goals

STRAP (Strategic Plan)

Cross functional and functional Roles and Responsibilities

Leadership Development Program – Context

2012 2013 2014

Leadership Development– Journey / Actions

• Defined

problem and

collaborated

with Hexcel

Global Leader

for

Development

• Provided

inputs to Q

Challenge

• Q Challenge

Session 1 of 3

• 10 Participants

• Direct and

indirect reports

• Q Challenge

Session 2 of 3

• 10 Participants

• Direct and

indirect reports

• Q Challenge

Session 3 of 3

• 10 Participants

• Direct and

indirect reports

• 8 of 10

participant s

earn certificate

• Q Challenge

Session 1 of 3

• 10 Participants

• Direct and

indirect reports

• Q Challenge

Session 2 of 3

• 10 Participants

• Direct and

indirect reports

• Q Challenge

Session 3 of 3

• 10 Participants

• Direct and

indirect reports

• 10 of 10

participant s

earn certificate

Q Challenge Group 1 Q Challenge Group 2

• Fierce

Conversations

• Direct Reports

and peers

• Fierce

Conversations

• Direct Reports

and

supervisors

Key Programs Sponsored• Communications• Engagement• Training

Key Program Sponsored• Direct Labor bidding proves

• Develop a strong team into a High Performance Team

• Improve team communications skills

• Shape the Hexcel culture for the future

• Capitalize on existing qualities and inspire peer groups

“The best teams develop themselves further when they are winning, not after they start to lose!”

– Phil Jackson

Q Challenge Program Objectives

Program Concepts

Change

Management

Performance

Maximization

• Strategy to align culture to Hexcel Values• Leadership effectiveness• High performance negotiations• e-coaching (e.g. emotional intelligence)

• Measurement of ROI, POL and ROC• Performance Strategy and Management• Customer Marketing and Retention• High Performance Teams

Common Language and Tools

“I believe that Q Challenge was a very effective leadership course. I have attended multiple leadership courses in the past that primarily focused on book learning, personality types, team building, etc. This course focused on situations, interactions and methodologies to get the most out of yourself and your team.” “Anybody can be a manager of task, few truly lead.”

“Q Challenge was a different teaching/coaching approach from the traditional previous

leadership trainings I had attended in my career. It was a high energy, very hands on

and interactive exchange of ideas and feedback which made for a very enjoyable and

memorable training. The best and most effective tool is the SMART objectives/goals

technique.”

“Q Challenge is an unusual program in my experience because it concentrates on the person,

on an individual’s responsibility to their employees, to themselves, and to their employer. He

speaks to who you are and what you think of you. I think it is highly effective”

“My most effective concept was finally understanding what is meant by ocular.”

“Q Challenge has been unlike any other training I have encountered because it is not training, it is

coaching. I believe the program is more about becoming self-aware, and recognizing strengths

and weaknesses around you. Q challenge puts you in a position that challenges you to change

your point of view and become a better coworker, employee and ultimately leader.”

Q Challenge – Qualitative Results

Q Challenge – Quantitative Results

Fantastic results in 2013

• Occupational Safety: TAR 0.92

• Top Line Revenue: $201m

• Improved Customer Satisfaction Index from 63% to 90%

• Delinquency reduction from $6.3m to <$350k

• OTD form 48% to 87% (94% Jan’14)

• Executed complex strategic capital projects

• Developed 10 year site plan aligned to STRAP

The challenge for the business in 2014

• Adjust to an unanticipated temporary market decline

• Take the opportunity to use Blue Ocean Thinking to radically improve our cost structure and agility

• Succession Planning / Right People / Champions

Strategic Site Plan Development and Execution

• Context

• Actions

• Outcomes and Results

• Aged assets circa 30 - 50 years of age with no integration plan for either a Maintenance Management or Manufacturing Execution Systems

• Constrained capacity, low capability of critical process lines and not aligned with market • Print

• Stack

• Lean design was not factored into legacy material and process flow.

• Material flows caused severe lost time injuries

• Numerous fires, explosions and power interruptions a significant risk to business continuity

• Regulatory remediation compliance with EPA, ADEQ and Pinal County and occupational health concerns caused by high LEL / VOC exposure to employees during processing

• Title V air permit assumptions were incorrect and did not support the capacity and throughput expansion need for 2015 through 2022. Required collaboration with ADEQ, Pinal County and EPA Region 9.

• Customer collaboration and approved qualifications required per AS9100 rev C

• Closed in excess of $30million in capital improvements from 2011 through 2014

Strategic Master Site Plan Development – Context

• Saw

• Cure (Ovens)

Strategic Master Site Plan Development – Objective

Expansion Objectives

Safety and

Environment

Revenue

Development

• Title V Permit / NEIC• Innovate Process Safety Hazard Elimination • Occupational Safety Improvement through Automation

• 737 MAX, Acousticap® Programs, HexShield®, Legacy Cores • Market Retention (the right ones)• Market Capture (the right ones)

Cost Down

Value Innovation

• Direct Cost Improvement• Overhead Improvement• Operating Income Improvement

Execute STRAP Revenue Development of $300m and Margin Contribution of 23.0 GM%

through 2022 at a CGAR of 14%

• Boeing Partnership for Success (PFS) Program

• Customer Satisfaction

• Rate Readiness 2015-2025• Customer Technology

Roadmap Alignment

Internal

• Environmental Sustainability

• Product Stewardship

External

Results

NewErwinExt.20K

Exist. Erwin20K

NewDip Cure~40K

AST

NewMulti-purpose

NewShipping/ Receiving

70K

• 35% of plan executed

• Critical expansion of print and oven capacity completed ahead of schedule and below budget

• Collaboration with Boeing and subcon spec custodians afforded rapid qualifications

• Collaboration with EPA and Pinal County afforded Title V permit in 8 months vs anticipated 18 months

• Saw center relocation completed with improved flow, velocity and air quality

• Undisputed global capacity leadership

Lead Time Reduction and Business Model Alignment

• Context

• Actions

• Outcomes and Results

• Circa 2004, the business acquired an equal sized business and accelerated the consolidation of manufacturing operations in the Bay Point, CA location resulting in strained space utilization, material flow and competencies with the manufacturing processes.

• Concomitantly, commercial aerospace build rates increased 20% impacting product demand and availability to promise resulting in continually increased

• Delinquencies increased up to 1.25 months of revenue or $8million, and

• Lead times increased up to in some cases 40+ weeks

• On time shipments and customer satisfaction declined to 50-60%

• Legacy paste packaging systems were aged and unable to support the increased volumes thus were outsourced, the equipment scrapped ultimately altering the business model.

• Capital expansion of warehousing, cold and frozen storage capacity was believed to need to increase by 100% to support the current and 5 year business plan at a capital cost in excess of $5million

• 13 temporary refrigerated trailers were leased with added operating costs, introduction of safety risks, reduced productivity and inventory accuracy deterioration.

Lead Time Reduction/Business Model – Context

• Cross functional business team conducted an analysis and identified three segments resulting in a modified business model

• Make to Stock – finished good stocked for immediate delivery with available to promise 1-3 days

• Make to Order – intermediate materials stock utilized to manufacture to order with increased velocity with available to promised within 1 – 4 weeks

• Special – materials with no opportunity for intermediate stock and planned upon order with lead-times based on raw material

• The above provided a warehouse footprint requirements for raw material, intermediate and finished good stock requirement

• Integrated and semi-automated process line designed and developed to vertically integrate packaging into the factory

Lead Time Reduction/Business Model – Actions/Journey

• Warehouse footprint reduced by 50% with a capital avoidance in excess of $4.5million

• Former warehouse space converted to packaging operations

• Refrigerated and frozen storage space utilization improved

• 13 refrigerated trailers removed from site

• Achieved a 50% reduction in lead times

• 23% reduction in operating costs

Lead Time Reduction/Business Model – Results

Peer Feedback

• Leadership Qualities

• What Separates Luigi from similar candidates?

• Randy Clement, Henkel VP Operations and former supervisor

• “Deals in facts, team player, empowers his team.”

• Russ Thurman, Hexcel Director of Operations Americas and former supervisor

• Luigi is a driven leader who is very compassionate for all people who report into him”

• Chris Braakman, Q Challenge and Henkel Leadership Coach

• “Future oriented attitude, decisive, vulnerability, stimulation management, facilitator of HPO, openness to change, big picture thinker”

• Maria Pereira, Hexcel Quality Manager and subordinate

• “Nurturing, Listener, Empowering, Integrity, Connecting.”

• Luis Alberto Perez. Hexcel Operations Manager and subordinate at Hexcel and Henkel

• “Luigi is very capable of motivating a team, he genuine about his feedback and that builds trust within his team”

• Matthew Stifter, Reginal Steering Head Americas, Henkel Aerospace and former colleague

• “He is very good at giving direction and explaining why that was the correct direction to take. He built a very good

team.”

• Steve Hartsoon, Hexcel EHS Manager and subordinate

• “Very strategic, great people developer and collaborative.”

• Patrice Buisson, Hexcel Global Airbus Director and former Henkel Aerospace Colleague

• “Leading by example. Results driven.”

Peer Feedback – Leadership Qualities

• Randy Clement, Henkel VP Operations and former supervisor

• “Luigi is focused on Quality, Safety , and Customer Service. He works to build a team environment..”

• Russ Thurman, Hexcel Director of Operations Americas and former supervisor

• Luigi has broad background in manufacturing with proven success. He also focuses on building a strong, diverse team to support his operations.”

• Chris Braakman, Q Challenge and Henkel Leadership Coach

• “Luigi is team player and family man with lots of empathy and compassion.”

• Maria Pereira, Hexcel Quality Manager and subordinate

• Ability to engage with stakeholders at all levels in pursuing common goals, and extraordinary ability to develop talent “

• Luis Alberto Perez. Hexcel Operations Manager and subordinate at Hexcel and Henkel

• “Luigi brings to the table a greater level of soft skills when dealing with peers, direct reports and shop floor operators that most analytical thinkers don't always have.”

• Matthew Stifter, Reginal Steering Head Americas, Henkel Aerospace and former colleague

• The client would have a difficult finding someone with a similar background to Luigi. He has experience with everything including manufacturing, quality, R&D, operations and has really done a lot of things for the organization. His diverse work experience helps him understand what works and how to impact the organization he works for.

• Steve Hartson, Hexcel EHS Manager and subordinate

• “Employees want to work for Luigi - he's humble, a great leader, gets results and is a great people developer.”

• Patrice Buisson, Hexcel Global Airbus Director and former Henkel Aerospace Colleague

• Industrial experience including operational crisis resolution. Understands people and processes..

Peer Feedback – What Separates Luigi from similar candidates?