14 MINERALS TECHNOLOGIES INC. OPERATIONAL EXELLENCE OPERATIONAL EXELLENCE IN 2007, Minerals Technologies instituted a system of continuous improvement throughout the company that we  call Operational Excellence (OE). The focus early on was to improve productivity and efficiency in our  manufacturing operations, but in 2008 we began to apply the same Lean principles to our staff functions,  like Finance, Human Resources and Legal. We knew that the processes would take employees time to  learn and to institute, but that once embedded, the system would reap multiple benefits, and it has: The  most telling contribution of our continuous improvement effort is the five percent per year compound  annual growth in productivity.  Some of the OE processes that have become  embedded in the company by a thoroughly  engaged workforce are: In 2013, MTI employees held 1,850 kaizen  events to identify ways to reduce waste  in hundreds of processes—more than a  200-percent increase over the number of  kaizen events conducted in 2010.  MTI’s Global Suggestion System uses a  computerized platform to advance our never- ending journey for continuous improvement. The system enables and encourages the  generation of ideas for improvement in the  following areas: As you can see from the chart, in 2013 our  employees submitted more than 15,000  improvement suggestions—that is nearly  eight suggestions for every employee.  Operational Excellence • 5S: A foundational way to organize the  workplace, epitomized by the phrase: “A place for everything and everything in  its place.” This process highlights waste  and serves as a basis for continuous  improvement. The 5 S’s are: Seiri (Sort);  Seiton (Set in Order); Seiso (Shine);  Seiketsu (Standardize); Shitsuke (Sustain).  • Standard Work: A detailed definition of the most efficient method to perform a  task to ensure a safe, stable, repeatable  and unambiguous process to achieve the reliable output of processes and  superior quality. • Total Productive Maintenance: A process  to optimize equipment effectiveness,  eliminate breakdowns and promote  autonomous operator maintenance  through day-to-day activities involving the  total workforce. • Daily Management Control: A system  that supports the ability to manage  departments, functions and processes.  Key operational data is collected,  measured and charted for visual tracking. This tracking facilitates rapid response to sudden operational issues or the  adoption of countermeasures to slowly  developing adversity. • Kaizen Events: Highly focused  improvement workshops that address a  specific process or work area. (Kaizen  translates to “change for the better.”) The events, which can be multi-day or  a few hours, typically involve a cross- functional group and may include  suppliers and customers. • New product and process development  • Expense reduction  • Operational Excellence  • Customer service  • Sales and revenue generation. MTI Kaizen Growth 2,000 1,500 1,000 500 0 Events 2010 2011 2012 2013 569 722 1,850 1,191 MTI Suggestion System Performance 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 80% 75% 70% 65% 60% 55% 50% Suggestions Implementation Rate 2010 2011 2012 2013 15,446 9,696 Implementation Rate Suggestions 1,613 51% 64% 65% 70% 6,093