1. We are all only as strong as the weakest link A Common Enterprise Supplier Supplier Supplier Supplier Supplier Raw Material Supplier Raw Material Supplier XXX Tier 4 Tier 3 Tier 2 Tier 1 XYZ Co. Plt. # 2 XYZ Co. Plt. # 1

2. Lean Organization Small Lots Pull Systems Level Scheduling Supplier Development Lead Time Reduction Error Proofing Planned Maintenance Workplace Organization & Visual Controls Employee / Process Control Containerization Quick Set-up Plant, Machine & Office Layout Transportation Reduction of Variation Machine Process Capability Standardized Operations Lean Organization

4. Strategies for the Total Cost Structure PRODUCT OPTIMIZATION STRUCTURE OPTIMIZATION MANUFACTURING OPTIMIZATION PURCHASE PARTS OPTIMIZATION DESIGN OPTIMIZATION BUSINESS REENGINEERING COMPLEXITY ANALYSIS PROCESS COST ANALYSIS RAW MATERIAL MANAGEMENT T O T A L C O S T S T R U C T U R E ADVANCE WORKSHOP LEAN IMPLEMENTATION WORKSHOP QUALITY WORKSHOP GLOBAL SOURCING FOR SUPPLIER RAW MATERIAL SOURCING COMMON APPROACH FOR M & E VALUE ANALYSIS VALUE ENGINEERING / CONTROL DFM / DFA ADVANCE PURCHASING CONSTRAINT WORKSHOP SUPPLIER COST ENGR”G QFD

5. Value ( Quality / Service / Technology / Price ) Desired Global Position Current Supplier Improved Position Identified Performance Gap Business Plan Analysis and Initiatives Transportation / Logistics Scheduling Supplier Business Plan Supplier Initiatives Process Reengineering Value Analysis / Value Engineering Containerization / Packaging Specifications Error Proofing Supplier Suggestions Advance Workshop Material Value Chain Constraint Workshop Quick Set-up Lean Implementation Workshop Quality Workshop Direct /Indirect Material Global Sourcing Raw Materials Management Supplier Development

6. Lean Manufacturing/Organization or... It doesn’t matter what you call it, as long as you do it! Synchronous Manufacturing/Organization Total Quality Management PICOS Lead-time Reduction Value Added Chain Quality Network Throughput Improvement Agile Manufacturing KAIZEN Continuous Improvement Workshop Reengineering

7. If you always do what you always did . . . . . . You’ll always get what you always got!

8. Measurements “ Tell me how you measure me and I’ll tell you how I’ll behave” Our operations are a product of the way we have measured them!

9. Continued dependence On conventional practices Using conventional measurements Will yield conventional results

11. Measurements If you don’t keep score, you are only practicing!

14. Winner or Loser? The Winner is always part of the answer. The Loser is always part of the problem. The Winner always has a program. The Loser always has an excuse. The Winner says, “Let me do it for you.” The Loser says, “That’s not my job.” The Winner sees an answer for every problem. The Loser sees a problem for every answer. The Winner sees a green near every sand trap. The Loser sees two or three sand traps near every green. The Winner says, “It may be difficult, but it is possible.” The Loser says, “It may be possible, but it is too difficult.” Be A Winner!

15. Managing Complex Change Vision Skills Change Action Plan Resources Incentives Skills Confusion Action Plan Resources Incentives Vision Anxiety Action Plan Resources Incentives Vision Skills Gradual Change Action Plan Resources Vision Skills Frustration Action Plan Incentives Vision Skills False Starts Resources Incentives

16. Maintaining A Healthy Heart PEOPLE Keep employees informed Provide job security Provide clean/safe workplace Provide necessary education Provide necessary training Balance work loads Two way communications Provide feedback Respond in a timely manner Involvement in decisions Listen to the employee’s ideas Provide reliable/capable tools & equipment

17. Remember . . . “ Vision without action is merely a dream. Action without vision is just passing time. Vision with action can change the world.” ...Joel Barker

18. Supplier Supplier Supplier Supplier Supplier Raw Material Supplier Raw Material Supplier XXX Tier 4 Tier 3 Tier 2 Tier 1 XYZ Co. Plt. # 2 XYZ Co. Plt. # 1 Supplier Business Plan Possible Improvement Strategies Supplier Lean Implementation Material VC Packaging Constraint W/S Transportation Value Analysis Quality W/S Global Sourcing