Thermo Electron Corporation's Compliance Test Solutions Business Wins Shingo Prize Award for Excellence in Manufacturing

LOWELL, Mass.--(BUSINESS WIRE)--June 15, 2005--The prize, described by Business Week magazine as the "Nobel Prize of manufacturing," recognizes lean manufacturing and exemplary business practices and processes that result in world-class performance and the ability to compete globally. Thermo's Compliance Test Solutions business is one of only three businesses in the Northeast region recognized with the Shingo Prize for achieving a world-class level of quality, cost, delivery, and business results.

The Compliance Test Solutions business of Thermo Electron Corporation started operations in 1975 as KeyTek, to help customers identify and alleviate electrical and electronic goods product failure problems. Founded on the principle of reducing waste as it relates to business efficiency, and product quality, KeyTek, its successor, Thermo KeyTek, and now the Compliance Test Solutions business of Thermo Electron, has spent the last three decades practicing and advancing lean/world-class manufacturing practices. Thermo's precision ESD and EMC test system solutions have been proven to be the most reliable and dependable in reducing catastrophic risks, ensuring product quality, and speeding time to market for its customers.

Under the current leadership of Gordon Woodfall, President and General Manager, Thermo's Compliance Test Solutions business has implemented a formalized Continuous Improvement Education and Training Program and a Lean Manufacturing Program, known as Thermo's PPI (Practical Process Improvement) Initiative. PPI empowers employees to make improvements to the company's production system processes to remove waste and provide greater customer value. As a result of instituting these programs, Thermo's Compliance Test Solutions business has seen on time orders improve from 27% to 85 %, a reduction of approximately 18% in material costs, a 39% in inventory reduction, and a 3600 square foot reduction in floor space in a two-year period.

"The timing of this prestigious award is perfect" said Gordon Woodfall, President of the Lowell manufacturing site. "The business is celebrating its 30th year anniversary, a testimonial to the long standing employee involvement and dedication. This prize will certainly continue to differentiate us in the global marketplace."