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Appendix III: Eighty-Twenty Improvement (“ETI”) Culture Material Cost Reduction Waste reduction • Manufacturing Efficiency Lean manufacturing focus Throughput flexibility • SKU rationalization • Savings through volume aggregation • Sourcing optimization רד • Labor pool management 80/20 SEGMENT . Flexible manufacturing model . Recent investments in machinery expected to result in productivity improvements ETI SIMPL Improvement Eighty-Twenty OPTIMIZE Pricing Strategy • Parts pricing strategy • Effective "options" pricing Working Capital Optimization • Derived benefits from manufacturing efficiencies and SKU rationalization · Improved cycle times to drive inventory reductions 24

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