Q-Squared

• Air Lock Updates - Tower bench has been constructed. V-Bottom roof work has begun. • GMP items for "other" entry points (R&D and Logistics office) will be installed soon. • Photographer taking employee pictures and Ideal poster situations. • Need to follow communication grid - to ensure all employees are informed. • Internal Q2 audits started again (warehouse). Gary reminded everyone of the correct procedure, including having department rep. present during audit. • We have been informed "mixed messages" are being communicated on the floor. Gary will meet with supervisors and make sure everyone is on the same page. • Monthly Q2 luncheons will start in May. All employees are invited and encouraged to join Gary and Stephen (and others) to discuss Q2 matters and to ask questions and offer ideas for improvements. • All employee - Quarterly meetings scheduled for May 3rd.

A new sign was hung in the plant reception area, welcoming employees and visitors alike to the Delhi plant. The sign appeared just in time for our first customer audit of 2006 (Marcor / Wyeth) A good bye sign is also posted thanking all for contributing to our success.

We restarted internal Q^2 audits last week. The first area audited was the warehouse ("section 1"). Some improvements were noticed; however additional work is still needed. Points were lost because things were not clean, or in their proper place, leaking steam pipe, and opened doors.

A lot goes into Q Squared. It is an integration of several improvement concepts and best practices. The condensed message is designed to help keep DMV employees focused on the core message.

• Rapid raise doors being installed to V-bottom hallway. • Air locks expected to be completed by 4/22/06 • Communication grid - designed to ensure no one get left behind (re: Q Squared messages). • Work on air handling system beginning 4/12/06. • Condensed Q^2 communications message developed will be put on employee paycheck envelopes and made into posters. • "Welcome" & "Thank You" posters will be hung in plant entry way. • E-bulletin board is hung, but not yet connected to network. Should be operational by 4/22/06. • E-board to communicate Q^2, S.H.E., and 6 Sigma information, Facility KPI's - such as total production, OSP, plant water usage, etc. New employees will be announced on the board, as well as customer visits / audits. Discussed possible "classified ad" section too. • Ken will be taking all three shifts on Q2 audits the week of April 19, 2006.

• Follow up air samples are within limits. We will continue as a routine part of our environmental monitoring program. • The E-board was ordered and would be installed in the break room by the end of the week. • We are investigating changing our current air filtration system to meet EU10 requirements. Conveying air and packaging room air would be filtered to this highest level of air filtration. • Communication is essential to ensure everyone knows and understands Q^2, what it means to us and why it is so important to the future of our plant / business. • Production is conducting awareness audits - several observations were recorded and Ken took an opportunity to do some coaching / training. • Construction work will begin on the aisle (V-bottom hallway) airlock.

Spring is in the air and it seems like everyone is thinking of Q Squared! Well maybe I am a bit biased. If you have good ideas on how we can make our work place better, safer, more efficient - tell your supervisor, or any member of the Q^2 project team. Some good ideas have been incorporated into action. A couple of good ideas for the air locks have been raised and will be implemented. They include 1) extra caulking and care given to the "wet side" of the tower airlock. 2) To use the same dairy board on the block walls. These are just a couple of good ideas that were causally mentioned - and put into action. As are result our work place is better off. What other ideas do you have? Let us know. Thanks

This week we begin our internal Q Squared audits. Trained auditors will be assessing our production facility and warehouse against eight criteria. 1. Progress against previously identified actions 2. Clean work place 3. Absences of leaks / leakage 4. Everything in its place 5. Maintenance according to plans 6. Secure Plant 7. Compliance to procedures and posted signs 8. Everyone knows what to do The first round of auditor training took place on April 6, 2006. Two additional auditor training sessions are scheduled over the next few weeks. Anyone interested in becoming an auditor should contact Stephen P - and their name can be added to the list.

The first round of training took place on March 31, 2006. Forty seven employees participated in the training. Results are graphed here. Additional training sessions are scheduled for April 10. Any operational or tech group employees who missed the March training are required to attend the make-up sessions Monday.

The new environmental program started on January 25th 2006. Since the start of the program we had one alert level and two action levels met. The alert level was met for site R14, the metal tube leading to each arm of the V-bottom bagger . R14 had a standard plate count of 7,200 cfu/ml. By meeting the alert level the site was cleaned to prevent any cross contamination. The two sites that met the action level were Y5, the Vent suction over the Veghel Kettle and R4 the black belt that tightens bags around diaphragm for the tower bagger. Y5 failed for enterobacteriaceae with a count of >25000 cfu/ml on 2/8/06. This site was cleaned then resampled on 2/15/06 and passed with a count of<10 cfu/ml. R4 failed for standard plate count with a count of 10,300 cfu/ml on 3/8/06. This site was cleaned then resampled on 3/15/06 and passed with a count of 730 cfu/ml.

A 42"Plasma panel was purchased and is scheduled for delivery the week of 4/3/06. This panel will serve as our " Electronic Bulletin Board " and will be installed in the South break room this week. The Electronic bulletin board will help inform employees of our progress against key objectives, new improvement programs, company successes, and provide additional educational opportunities.

• Baseline Plant Air levels to be determined. • Good progress is being made on hygiene transition zones (air locks). Expect to be completed on time. • Air filtration standards - EU10. This is the highest level of air filtration, can we implement this standard in Delhi? Don H. to investigate further (cost v. benefits, is there some middle ground?) • A concise statement that defines Q2 is being created. It will be an easy to remember the purpose / benefits of our Q^2 efforts. • New hygiene auditing map unveiled. • "beta” version of an entrance way poster presented.