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February 23, 2009 MEDIA CONTACT
Tom Frauman
(717) 682-5105
tfrauman@FlinchbaughEngineering.com

FOR IMMEDIATE RELEASE

Flinchbaugh Engineering Receives Award from Caterpillar

Company credits its lean manufacturing outsourcing solution

HELLAM, Pa. (February 23, 2009) – After two years of dedicated teamwork and continuous improvement, Flinchbaugh Engineering has been formally recognized in an award ceremony at Caterpillar Global Purchasing in Peoria, Ill. Flinchbaugh executives Rob Campbell, vice president business development and Steve Shank, vice president operations, accepted the Bronze Certification in the Caterpillar Supplier Quality Excellence Program (SQEP) on behalf of its 200 employee/owners. The Bronze Certification award is given to Caterpillar suppliers for exemplary performance in delivery, quality, process control and continuous improvement.

Gary Davies, CAT global casting category manager, presented the award with his compliments and appreciation to the entire Flinchbaugh Engineering team, recognizing the high level of effort and commitment required to attain this prestigious award. Flinchbaugh is one of only 17 suppliers to achieve certification, out of 594 machined-casting suppliers worldwide. Certified suppliers will be given access to all new products and will be given the opportunity to bid on all packages being resourced globally, resulting in additional growth in revenue and employment at Flinchbaugh.

Flinchbaugh attributes its success to its Strategic Cell Migration (www.stratcell.com) business model. Strategic Cell Migration is Flinchbaugh’s unique version of a manufacturing line transfer, where an entire work cell — including machinery, tooling and test equipment — are transferred from the client’s manufacturing facility to Flinchbaugh�������s campus. Strategic Cell Migration leverages lean manufacturing principles and six sigma to create a cost-competitive outsourcing solution for manufacturers of complex quality critical metal components.

Flinchbaugh has utilized Strategic Cell Migration to become a leading producer of components for Caterpillar transmissions. In 2003, Caterpillar transferred 35 machines from their Dyersburg,, Tenn. facility to Flinchbaugh in Hellam, Pa., where it runs production at a high level of efficiency using lean manufacturing techniques in a high-urgency culture. The line transfer created additional factory floor space for Caterpillar and all costs associated with producing the transmissions including labor and machine maintenance. Flinchbaugh Engineering has completed 15 Strategic Cell Migrations for major corporate clients including, Caterpillar, Siemens, NTN-BCA, AxleTech and Mack/Volvo.

Flinchbaugh Engineering is an employee-owned (ESOP) manufacturer of precision metal machined components used in a variety of critical applications including: heavy equipment, oil and gas exploration, wind energy and passenger rail. Flinchbaugh is located in Hellam, Pa.

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