Kerr draws upon the best available technology and machinery to support our quality efforts. We select optimum materials for each product and incorporate the materials and machinery with our human expertise and knowledge to design and produce quality products. Illustrative of this effort is the fact that 70% of Kerr's full product line is under Kerr Patent.

To enable our daily efforts and to achieve our goal as the supplier of choice, our actions include the following areas:

Quality Systems are ISO compliant. Kerr's quality procedures and work instructions are detailed and cover a wide scope of areas, even beyond those of ISO. Kerr operates pharmaceutical plants to cGMP requirements, with all plants annually inspected by the American Institute of Baking (AIB), which has bestowed its highest ratings on all Kerr facilities. Kerr also maintains Interstate Milk Shipper (IMS) approval at its Bowling Green, Kentucky plant. Compliance is also maintained with all regulatory requirements, including CPSC, FDA and Poison Prevention Act regulations. Examples of just some of elements of our quality system include supplier surveillance procedures, calibration systems, internal audits led by Corporate Quality personnel, full material and traceability procedures, batch record systems and review and change control procedures.

Job Structure is established to reinforce that all associates are accountable for the quality of their efforts. Individual accountability is important, but teams of people combine to continuously improve our products and services.

In-Process Verification Equipment is an important base of our quality process. Such equipment is used to assure and validate the quality of our products, not to sort good parts from bad. It is an additional layer of information and validation of product integrity. High-speed vision systems monitor many features of our closures. In out injection blow container business, Kerr has developed custom vision applications that are used to 100% verify container attributes and also utilize dimensional measurement capability to measure key features on line for all containers. Kerr has also developed an exclusive in-line system to validate part integrity of our two-piece child-resistant closure using our fluidics system.

Key Process Variable Monitoring is the centerpiece of our quality process. Kerr is continuously evolving and improving our process control capability, both in molding and secondary operations. Working with key vendors such as Husky, Plantstar and Mattec, we are using statistical techniques to monitor key process variables and to react to changes which can adversely impact product quality or productivity.

Training is a key enabler or our associates' efforts in achieving customer satisfaction. Kerr's training covers many aspects of our business. From technical training in many areas to problem solving courses to team training and required courses in GMP compliance, OSHA requirements and from special training in DOE's to process control methods, Kerr is committed to employing the best and most knowledgeable staff.

Information Reporting and Analysis provides Kerr personnel with feedback on customer satisfaction, company performance and the status in achieving the goals and objectives Kerr sets forth. Whether it is information about our manufacturing capability or part per million defect rates, the company's ability to manage the micro and macro elements of performance are enabled with our information systems. Kerr also provides its customers who desire it certain web-based information and analysis of the order-fulfillment process.

The results of our efforts that combine leadership and enabling practices is measured via customer relationships and in Kerr's ability to attract new customers. Results are also measured in our internal capability to produce quality returns to our investors and in work-life quality for our associates.

The combination of active quality leadership and commitment coupled with the areas of enablement are embodied as Kerr's Means of Excellence Process. Means of Excellence is a company effort that strives for continuous improvement in all aspects of our business and focuses those efforts on pleasing our customers.