Production Boat Design Cycle

Quality Data Influence

Accounting & Logistics Background 6 Years in Medical Device Industry 10 Years in Marine Industry Director of Quality – BBG

Bio

Evolution of the “Boater” Utilization of Data Innovations Going Forward

Discussion Points

Customer – Boater who started small & worked his way into bigger boats – Boater DNA!

Use of Product Recreation with family & friends including water

skiing, fishing, etc… Overnight boating, trips, etc…

Boat Content – Engine, gauges & radio Expectations – Boat is functional

Boater – 20 Years Ago

Customer – Boater DNA, Casual Boater, & Image Conscious Boater

Use of Product Recreation with family & friends including water skiing,

tubing, wake boarding, fishing, etc… Day Boating

Content Casual Boater – Matches features to needs for right price Image Conscious Boater – Every bell and whistle possible

Expectations Casual Boater – Boat is reliable, easy to use & safe Image Conscious Boater – Boat is reputable,

customizable & reliable

Boaters – Present Time

Evolution of Quality Data Into New Model Development

2000’s

New Product Inputs

Quality Data

Manufacturing Defects Pros

Identify defect before boat ships Ability to correct & use as training opportunity

Cons Must stay on top of data

Internal Quality

Internal Quality

Internal Defects – Pareto for Improvement

Internal Quality

Pin Map Visual Defects

- Stress Crack

Internal Quality

Hull Weight

Variable Internal Data

Internal Audits & 3rd Party Audits Compliance, NMMA, USCG, ISO, process, supplier

installation, etc… Pros

Used to validate processes & process controls Audits minimize risk Create containment windows

Cons Audits are sporadic Window of exposure might be present

Audits

Audits

In Process Audit Results

Audits

Compliance Audit Results

Warranty Pros

Failures give you the ability to create failure rates

Cons Lagging indicator (12-18 months)

External Quality

External Quality

Begin To “Peel The Onion”

External Quality

External Quality

Sub Commodity Description Failure Reason TotalOutdrive Units MECHANICAL FAILURE $6,385

Outdrive Units Total $6,385Gauges MECHANICAL FAILURE $1,539

TACH REPLACED $1,196ELECTRICAL FAILURE $489SPEED O REPLACED $282FINISH FAILURE $181OIL PRESSURE GA REPLACED $89

Gauges Total $3,776Electric Trolling Motors MECHANICAL FAILURE $2,345

Electric Trolling Motors Total $2,345Canvas Parts REPLACE CANVAS (MISC ITEMS) $836

Poor Design $741ZIPPER FAILURE $128REPAIR CANVAS $70

Canvas Parts Total $1,775Navigational Lights MECHANICAL FAILURE $624

NAVIGATION LIGHT REPLACED $359FASTENER FAILURE $126FINISH FAILURE $42

Navigational Lights Total $1,151Switches MECHANICAL FAILURE $421

ELECTRICAL FAILURE $277HORN BUTTON REPLACED $109CRACKED/BROKEN $96

Switches Total $903Sending Units REPLACE FUEL SENDING UNIT $527

MECHANICAL FAILURE $259Sending Units Total $787

Customer Questionnaires – JD Power, CSI Pros

Quantify customer expectations Data down to the model Compare competitively

Cons Lagging data indicator (300 days after retail

sale) Low response rate (Industry average 22%)

Competitive Analysis

Competitive Analysis

BPI Question:Brand A

Best in Class Score

Best in Class Brand

Best In Class Gap

Model A Model B Model C Model D Model E Model F Model G Model H Model I

Ride and Handling: Ability to control boat at high 8.50 9.29 Brand X 0.79 8.33 9.50 9.20 9.00 9.13 9.17 9.39 8.25 9.67Ride and Handling: Ease of maneuvering boat at low speeds

8.028.93 Brand X 0.91

10.00 9.15 9.00 8.82 8.40 9.00 9.00 7.75 9.33

Ride and Handling: Ease of reversing boat 8.47 9.11 Brand X 0.64 10.00 8.95 9.00 9.18 9.00 8.83 9.11 7.75 9.67Ride and Handling: Ease of steering/maintaining course in rough water

8.249.11 Brand X 0.87

8.33 9.15 8.70 8.94 9.07 8.83 9.33 8.25 9.67

Ride and Handling: Ease of trimming boat: bow 8.38 9.19 Brand X 0.81 10.00 9.00 8.80 9.12 8.87 9.00 9.47 8.25 9.67Ride and Handling: Smoothness of ride in rough 7.70 8.76 Brand X 1.06 10.00 8.25 8.90 8.59 8.60 8.67 8.83 8.00 9.67Ride and Handling: Speed of boat 7.82 9.09 Brand Y 1.27 10.00 8.70 8.70 9.06 8.73 8.67 9.17 6.75 9.67

Segment Comparison Model Comparison

Utilize Data to Drive Segment, Model & Feature/Design Improvements

Manufacturing Processes

Innovations

Chopping & Hand Laying Infusion

Dash Instrumentation

Innovations

Swim Platform Steps

Innovations

Transom Seating

Water Sports

Innovations

Old School New School

Docking Controls

Innovations

Dual Binnacle Bow & Stern Thruster Joystick Control

Boater Will Change Must keep up with changes

Boats are More Complex More opportunity for failure Liability is higher

New Model Development Takes 12-24 months

Going Forward

Future