Agenda

1. Introduction of YOU 2. The OpEx-Approach incl. example + tools & techniques used

OpEx Project Live Example •

Introduction

OpEx Project PwC Live Example • 15. September 2013

YOU, a hands on & pragmatic PM with more then 13 years experience in providing sustainable results

1. Summary of Status, Skills,Tools and Industries – – – – – – – 52 years old, living in MyTown Change oriented OpEx Project Manager with a strong combination of excellent change and implementation skills and a hands on mentality. Language skills; fluent in English and Klingon with basic Spanish and Romulan.

Gained also strategic and administrative optimization skills due to past 3 years of work within business transformation programs at XYZ Overall XX years of working experience in project- and program management, business transformation, process improvement, production and maintenance efficiency optimization and with the sustainable implementation of operational change programs Worked across a number of different industries including Pharmaceuticals, Chemicals, Oil & Gas, Metals & Mining, Manufacturing, Construction and Automotive. Employers include: Cool Company, Big Company, and Mega-Awesome Company.

Strong track-record of delivering bottom line results while managing multicultural teams in cross border projects and an ability to transfer knowledge to clients and coach / influence on management level Certificates: Six Sigma Black Belt, MTM Practitioner, Instructor for trainees & apprentices (IHK) 2. Professional Experience and Education 2011 - 2014 Manager, Business Transformation Group, Focus on business process optimization & lean administration, Mega-Awesome Company 2006 - 2010 APM, led and was involved in many OPEX analysis, projects and programs for clients across the globe spanning many sectors and ranging from local single site programs to global multi-site, multi-country projects, Cool Company 2003 - 2006 Project Manager After-Sales Logistics, Focusing on Warehouse Optimization an MTM Implementation in Klingon After-Sales-Logistic Centers (LCs) of the Big Company 2001 - 2003 2001 - 2003 Consultant Marketing, After-Sales ,Service Tools, Agile Company Master of Business Administration, Starfleet University for business administration & international Entrepreneurship, Rigil-7, Postgraduate Study in Cooperation with Generous Company 1998 - 2001 Diplom-Betriebswirt, University of Cooperative Education Mannheim, Apprentice position at MyFirstJob Company 3. Key Projects / Deliverables – – – – – – – Currently involved in a major global business transformation program with the target to optimize the contact to cash (C2C) procedures within the global network Responsible for running large operational improvement implementation projects in various industries and delivered in total over $12m financial benefits for clients Increased the OEE by 20% in average during a huge OPEX Program (chemical industry) using SMED and further lean techniques and optimized a packaging department including realized savings of $15m (FMCG industry) Developed, designed and implemented a Management Control- & Reporting System (MCRS) for clients in the Metals & Mining, Chemical, Construction and FMCG industry during operational improvement and change projects Implemented a Stage Gate Model in order to optimize the preparation, planning, and realization of CAPEX projects resulting in savings of $3.5m (Metals & Minding) Realized annual savings of $3.15m through maintenance and contractor cost reduction and production optimization during a huge OPEX Program Successfully implemented MTM and executed continuous improvement programs in different European Logistic Centres for the Zoom Company (automotive industry)

1. Summary of Status, Skills, Tools & Industries

       52 years old, long-time resident of MyTown.

Change oriented operational PM (Project Manager) with a strong combination of excellent change & implementation skills and a hands on mentality. Gained business process improvement skills due to my work as Manager for the Business Transformation Group Overall more then 13 years of experience in project- and program management, business transformation, process improvement, production and maintenance efficiency optimization and with the sustainable implementation of operational change programs Worked across a number of different industries including Pharmaceuticals, Chemicals, Oil & Gas, Metals & Mining, Manufacturing, Construction and Automotive. Strong track-record of delivering bottom line results while managing multicultural teams in cross border projects and an ability to transfer knowledge to the client by coaching or training of stakeholders or staff Certificates: Six Sigma Black Belt, MTM Practitioner, Instructor for trainees & apprentices (IHK)

2. Professional Experience

2010 - 2013 Manager Process Optimization, Business Transformation Group, Focus on business improvement,

MegaAwesome Company

2006 - 2010 APM, led and was involved in many OPEX analysis, projects and programs for clients across the globe spanning many sectors and ranging from local single site programs to global multi-site, multi-country projects, Cool Company 2003 - 2006 Manager Industrial Engineering After-Sales Logistics, Focusing on Warehouse Optimization, CIP and MTM Implementation in German After-Sales-Logistic Centers (LCs) of the Big Company 2001 - 2003 Junior Consultant Marketing, After-Sales, Special Service Tools, MidMarket Company 2001 - 2003 Master of Business Administration, Steinbeis University for business administration & international Entrepreneurship, Rigil-7, Postgraduate Study in Cooperation with Generous Company 1998 - 2001 Bachelor’s Degree, University of Academia, School of Hard Knocks Apprentice Position, LearnWhileDoing Company, (Member of Transition Group)

3. Key Projects / Deliverables - OpEx / Lean & Change-Projects

         Currently involved in a major global business transformation program within the MegaCool Company. The target is to optimize / standardize the contact to cash (C2C) processes within the global MegaCool network Responsible for running large operational improvement projects for Big Company as project leader or program workstream lead in various industries and delivered in total over $12m financial benefits for clients Main areas of focus are Production Optimization, Implementation of Management Control & Reporting Systems including the definition of suitable KPIs and Maintenance Optimization Increased the OEE by 20% in average during a huge OPEX Program (chemical industry) using SMED and further lean techniques and optimized a packaging department including realized savings of $15m (FMCG industry) Significantly increased the preventive maintenance tasks from 15% to 65% by implementing an effective preventive maintenance planning process for Fitters including RACI (FMCG industry) Developed, designed and implemented a Management Control- & Reporting System (MCRS) for clients in the Metals & Mining, Chemical, Construction and FMCG industry during operational improvement and change projects Implemented a Stage Gate Model and new invest process in order to optimize the preparation, planning, and realization of CAPEX projects resulting in savings of $3.5m (Metals & Minding) Realized annual savings of $3.15m through maintenance, contractor cost reduction and production optimization during a huge OPEX Program Successfully implemented MTM and executed continuous improvement programs in different European Logistic Centres for the Zoom Company (automotive industry)

Summary - 10 primary reasons why I‘m the right person for you to enable change

1. Double asset because of experience in leading enterprise wide business transformation projects (focus on business process optimization) and my experience in leading operational excellence projects with shopfloor implementation focus -> Very flexible 2. Working Experience in Industry (SmallMfg Group, Logistics Company) and as well OpEx Consulting experience (GoodSyze Consulting Company) -> Overall 13 years of working experience 3. Got hands on mentality -> The pragmatic “Shopfloor-Manager” – I’m working towards results bottom up involving the Shopfloor-staff and the Management during Multi-Site and Cross functional projects in order to drive operational change through business improvement using relevant lean management tools and practices 4. Designed and implemented already customized solutions end to end and executed transformation & change projects for top companies across Europe with a proven track record for project execution OTIF (On time in full) 5. Sales & Analysis experience due to participation in various proposals and beauty contests. Already involved in various analysis and created business cases + designed project definitions including relevant Workstreams 6. Strong practical lean knowledge and set of tools (5S, SMED, Six Sigma tools, RACI, RCA, FMEA etc.) and created my own tool-set and training database in order to be able to focus on a great variety of topics 7. Can easily transfer best practise & lean knowledge throughout the organization because of excellent training & coaching skills and moderation of plenty (> 70) workshops to train the trainers or the operations staff in different industrial sectors (FMCG, Pharma & Chemicals, Industrial Manufacturing, Automotive) 8. Strong skills in leading people during Multi-Site and Cross functional projects in order to drive operational change through business improvement using relevant lean management tools and practices 9. Flexible and able to travel up to 5 days a week

10. Expected short onboarding time

The OpEx Project Approach – Involving the people

PwC 15. September 2013

Project - Execution Modell

Overview Phases & Content

Project Initialization Analyze Design / Concept Project Execution Install Implement Project Sustainability Sustain • • Content of Phase: • Identify areas of improvement and customer requirements • Execute focus Interviews DILOS etc. -> conduct Analysis on focus areas (e.g. Maintenance) • Description of the As-Is and development of to be Situation • Definition Roadmap Business Case and Targets • Define Project-scope (scope of analysis), • Identify potential Milestones Set up the Teams Identify Stakeholders Project risks • Get agreement of Site Mgmt.& Global Lead • • Content of Phase: • Structure and operationalize targets • Define criteria for Measurement (KPIs) • Set up work packages & start working (Kick Offs) • Develop To-Be Processes (e.g. loss accounting process for OEE losses) • Develop structure of to be Management Control & Reporting System • Develop concept for To be Organization / Processes Roles & Responsibilities (RACI) • Define detailed concept and conduct preparation for pilot Develop training plan Coaching of shopfloor members & teamlead • • Content of Phase: • Develop detailed Roadmap & Strategy for Implementation • Installation of To-Be MCRS, Processes, KPIs, Meetings, SOPs • Establish new defined Roles & Responsibilities • OEE Measurement installed • Training packages delivered to the staff • Preparation of the implementation Phase Pilot trainings executed Execution of the Installation of new defined, processes, systems and behaviors within a pilot (test unit) • Follow clear roadmap for change management Content of Phase: • Roll-Out of new developed and tested systems, technologies, and processes in all units / plants • New RACI implemented • Implementation of change management concept • Optimization of Interfaces between departments (e.g. Production and Maintenance) executed • Continuous Improvement Loops (DADA) implemented • Loss accounting and RCA implemented • New Meeting structure according to to-be MCRS incl. The right KPIs implemented Content of Phase: • Definition of past project-governance • Ensure Sustainability of Improvement Loops • Define Reviews / Audits in order to follow up on mid / long term targets • Define Reviews for target Measurement • Evaluate Business Case Target (Performance) • Execute Lessons Learned session • Documentation of open points • Agreement on solving open points (how & who) • Conduct project closing report Project Management Report in Management Meetings, Quality Management, Project Controlling; Project Status Report, Support on Tools, Tactics and Methodologies OpEx Project Live Example •

Project – Approach: OpEx execution based on the needs of the company

Project Initialization Analyze Design / Concept Project Execution Install Implement Project Sustainability Sustain

Operational Excellence

Cost savings, Increased Output, Reduction of Waste, Quality improvements, Effectiveness and Efficiency Maintenance Production Innovation (R&D) Sales & OP Corporate Functions (HR, Procurement etc.) Lean Management, Kaizen, Six Sigma, Process Optimization Training & coaching of staff at all levels Management commitment, leadership & people engagement

We use selected tools, techniques and tactics tailored to the client needs and consider

behavioral change aspects

in order to achieve measureable and

sustainable results

Focus on processes, systems and people in order to enable behavioral change & sustainable results

PROCESSES

    Problem solving processes Statistical process capability evaluation Fact based improvements Project Management

SYSTEM

   Decision making System Functional and integrated Management Control & Reporting System with integrated KPIs Shop floor level visual management

PEOPLE

    Roles and responsibilities CI training & Coaching People Development Knowledge Utilization & best practices OpEx Project Live Example •

BEHAVIORAL CHANGE

      Collaboration vs. Competition Clear & transparent decision making Common language Clear Goals Structured problem solving Consistent accountability and disciplines

SUSTAINABLE RESULTS



$

    Improved Processes Operational benefits Continuous Improvement structure and culture Enhanced CI capability

The Approach:

Fundamentally changed behaviours of people working in compliance with new installed processes, systems and organizational structures. Convinced of the common work and therefore sustaining the change

Every organization will need to go through a change process to achieve sustainable results!

Experience & Reflection contributing Developing Practice & Learning

Usage

Performing

‘Ownership’

engaging take-over giving

self confidence pride cautiously positive

cooperating

hopeful

watching

mistrust

Compliance

protecting

disbelief

Understanding

withdrawing

Acceptance

OpEx Project -

Prozedural Change

uncertainty angry

Behavioural Change Cultural Change

Change Management is vital for any programs success

What is done

?

How is it done?

CHANGE PROGRAM ACTIVITIES

Execute activities to plan, design, implement & sustain the change

We need concrete actions, change and business engagement across all Sites, for the transformation driven to take

OpEx Project Live Example •

place. Without change of people’s behavior no change will happen

4

We focus on a day by day implementation working closely with the people at all levels from Shopfloor to the Top-Management

OpEx Lead

Project Management Methods and Tools  Planning & scheduling  Integration of results   Milestones & action logs Communication & escalation Corporate Sustainable

Approach

Aspiration Results Precise  Analysis of existing data & information  Test against the reality   Proceed own studies Definition of a business case  Design of an implementation project and execute Fact based Tailored Result focused Tools / Structure Decisions Behaviour Reality

Example – OpEx Project

Target (Example) Key Issues

Reduction of annualized Maintenance & Packaging department cost 0f X.X Mio. € in all plants by improving Maintenance efficiency, effectiveness and product changeover times while using selected tools for OpEx improvement OpEx Project • • • • • • • • • • • Shift handovers not executed properly No Management Control & Reporting System bottom up including the right KPIs in place* Maintenance planning system including PPM, Routines and planed corrective actions not in place Weekly planning and gatekeeping not efficient Work preparation not optimal Lack of Supervision on Shopfloor High no. of short stops on packing machines Competence Matrix for fitters not in place Contractor Work placement unclear Many “non moved” Spare parts stored Lost packaging time due to many changes in the PCO planning Lost time during Changeovers execution • • Lost availability due missing of cleaning supervision Integrated PCO Live Example • quality level

Actions How we did it?

• • • • • • • • • • • • • • • • • • • • Improve Shopfloor Leadership Improve Quality of bulk Improve Competence Levels of Operators Solve Issues / Root causes for Shortstops on defined machines Implement SOPs in defined lines Reduce manning per line & implement job rotation Reduce response time of fitters on machines Install & Implement a sufficient maintenance planning system Define, Install and Implement an MCRS Definition & Measurement of the right KPIs Install loss accounting process for OEE loss and continuously visualized OEE Measurement Drive cultural and behavior change Higher the percentage of planed PPM actions and planed Routines Reduce Contractor cost Reduce Spare Part cost Reduce Changeover times Optimization of Interfaces between production and Maintenance (planning aligned) Reduce cleaning times on packing machines Train fitters Visualize OEE Measurement on each packaging machine • • • • • • • • • • • • • • • • • FMEA on all packaging machines executed, Root Causes Analysis conducted and task force to eliminate the root causes installed Pilot installation of new Maintenance Planning System in one building and implementation in all buildings done afterwards Create tool in order to follow on Fitters Response and Repair times Create maintenance routines for all machines Installation of Shopfloor monitors in order to visualize the OEE per machine Proper Shift handovers installed, RACI Matrix installed to define clear Roles & Responsibilities Implementation of a job rotation system in the packaging department Management Control & Reporting System implemented Weekly KPIs measured and discussed in new installed CI meetings within an MCRS framework in order to enable performance optimization loop SOPs on all machines defined & agreed Focus on right training of fitters after new installed competence matrix showed gaps Contractor Costs reduced by renegotiation of contracts ,integrated planning , less contractor waiting times on machines & installation of new authorization process in for contractor assignments Spare Part analysis executed and significantly reduced no. of items on stock.

SMED Analysis (including Video study) executed after election of most critical machines (based on Pareto analysis) Install Cleaning Supervisor resulting in reduced cleaning times on machines before & during changeover execution Implemented Short Interval Controls on Shopfloor Management

Tools & Techniques used

• • • • • • • • • • • • • • • • • • • • • • • • • • Stakeholder Analysis SIPOC DILO Studies (Day in the life of to evaluate NVA times) Focus Interviews Failure Measurement System Histogram Fishbone diagrams SMED Analysis PARETO diagrams Failure Mode Effects Analysis (FMEA) Root Cause Analysis (RCA) Process flows PDCA Cycle CI Meetings conducted according to TOR (Terms of references) Meeting Effectiveness Measurement - Tool Different Brainstorming techniques 5 Whys 5S Control Charts Stock & run Rate Optimizer Shopfloor Management Short Interval Control KPIs installed (Maintenance e.g. MTTR, MTBF etc.) MCRS (Management Control & Reporting System) implemented Maintenance planning system implemented (incl. contractor works, planed preventive actions & routines) Shopfloor Visualization 23

Other Example – Project Pharma-/Chemicals

Benefits

Work streams Main Issues Actions Annualized Maintenance cost reduction of X.XX Million EUR by improving efficiency + Annualized Maintenance contractor cost reduction of X.XX Million EUR + Annualized reduction of Production cost of X.XX Million EUR by PCO improvements

OpEx Project • • Increase equipment Reliability • • Every building has its individual Preventive Maintenance plan IER process does not work properly • • Maintenance Planning process implementation Contractor Cost reduction and implementation of new contractor strategy • • • • Weekly planning of Maintenance tasks and gatekeeping not efficient Work preparation not optimal & lack of supervision during execution Only a view preventative Maintenance actions are planed Do it yourself SOPs missing • • • Skill Matrix / authorization process not in place Contractor work placement unclear, supervision insufficient Outsourcing of activities to the fire brigade • • • • • • Create transparency in PPM plans over all buildings Review reason / necessity for preventive maintenance Adjust PPM intervals Install continuous improvement loop Perform cost driver analysis + follow up Close IER solve loop, link to asset utilization (AU) • • • • • • • • Define Best Practice for week planning and standardize for all buildings Improve gatekeeping including KPI ´ s Match required capacity with current capacity Link weekly planning to preventive maintenance & PCO and optimize planning process (Higher Efficiency) Prepare work order properly Make tasks clear and all tools available in time Install walking tours with Short Interval Control Install continuous improvement loop by comparing actual to planned hours • • • • • • • • • Define clear skill matrix for contractor work Develop and install approval process for contractor work Regular check of long-term contracts (LV) Adjust Roles and Responsibilities Clarify and optimize different versions of contractor work Free-up time of supervisors Introduce short interval control (supervision forms) Consolidation of warehouses - (from 700 to 7) Identify additional work for fire fighters Product Changeover process optimization Live Example • • • • • Many changes in the PCO planning and high PCO Cost Gatekeeping for chemical changes not in place Time management missing, high administration Insourcing of certain activities • • • • • • • • • • Visualize effect of changing production plan (cost transparency) Create a stable production plan environment for better PCO planning (S&OP) Install gatekeeping for chemical process, chemical engineering, HAZOP actions Fix the freeze dates for Kick-off and flow sheet Include hour estimations in set-up lists Regular control of progress with own supervisors Integration Planning Maintenance - PCO PMS, KPI ´ s, Change control B700 Multi-skilled personal Standardized start-up for all plants (improvement points) 16

Example – OpEx Project Tools & Techniques I

Tools & Techniques Stakeholder Analysis Template DILO Studies (Day in the life of) Failure Measurement System (List) Histogram Fishbone (Ishikawa) diagrams / RCA PARETO diagrams FMEA Use during the project Benefit of usage

• • To identify the right Stakeholders, measure their impact on the project results and the position vs. the project TO define actions based on impact / position of Stakeholders • • • Conducted on Fitters Conducted on Cleaning Team Conducted on Operators • Installed a simple system on the shopfloor in order to measure the # of failures on machines, categorize them and evaluate the time loss per failure (e.g. short stop) • Used the technique to measure the stability of the bulk quality • Secure of Stakeholder Engagement during the project • Find out the % of NVA time and define actions to reduce wasted time • • We measured the No. of failures & Categorized them The counting of failures is basis for RCA/FMEA and for Measurement of KPIs • Identify deviations from the standard • • To break down (in successive layers of detail) root causes that potentially contribute to a particular effect on the problems of the packaging machines.

5 Why’s as questioning technique used • Used to identify the most critical machines for changeover improvements (On which machines does it make sense to conduct the SMED studies) • Assessed potential failure mechanisms, failure modes and their impact on system operation, resulting in a list of failure modes ranked according to the seriousness of their system impact and likelihood of occurrence.

• Identified Root Causes for existing problems on machines • Identify the most critical machines (80/20 rule) for the SMED studies • • Early identification and elimination of potential failure modes on production machines Improve production yield

SMED Analysis Process flows /Swim lane (VISIO) diagrams

• Conducted SMED (Single Minutes Exchange of Die) Analysis on most critical machines in order reduce NVA in the product changeover process an enable machines to start-up faster. • To map the as is authorization process for contractor assignments and develop a new authorization process which was installed to reduce work done by contractors • To achieve a significantly higher availability of machines reached resulting in an OEE improvement • Strict approval process before engagement of contractors resulting in less money spend for contractors although the work can be done by own staff 17

Example – OpEx Project Tools & Techniques II

Tools & Techniques Use during the project Benefit of usage PDCA Cycle 5 S Stock & run Rate Optimizer Brainstorming techniques / 5 Whys SIC

• Technique was used to higher the quality of the bulk. Step by step after trying different possibilities for changes and evaluating them in the weekly “CI meetings” • Trained Fitters and other blue collars on the 5s in order to save time during and before starting repair works (e.g. tools are now always prepared before etc.) • Used in order to analyze the Warehouses for Non moving parts and in order to fin d out the optimum run rate • • Used in CI meetings to gather improvement ideas of the staff Also used (besides the 5Why’s) in order to find the root causes for failures and to gather ideas to reduce the changeover times (besides conducting SMED analysis) • Short Interval Controls implemented for Audit of Meetings • • Sustainable implementation of MTC planning system Higher bulk quality • Reduced waste time of fitters • • • Optimized Warehousing Space Reduced parts on Stock Define the optimum run rate • • Clustered Ideas of Improvement and for changeover time reduction Clustered Root Causes • Higher Meeting efficiency

MCRS / KPIs Shopfloor Visualization

• Implemented an bottom up Management Reporting System including the right Meeting structure and the right KPIs • • Used in order visualize Key KPIs on the Shopfloor level We installed monitors measuring the OEE and showed the actual pan vs. Is Outputs to the Shopfloor people.

• • Meetings according to a Continuous Improvement Loop are in place Meetings for planning and comparison of As-Is vs. To-Be data are in place for all Maintenance and Packaging departments resulting in a valid management reporting • KPIs visible to the staff resulting in a change culture in which all people feel involved and focusing on the improvement targets

Shopfloor Leadership optimization

• • We increased the amount of time the Team-Leaders are visible on the Shopfloor Coaching the Department & Team Leadership • • Better understanding of problems More awareness on the Shopfloor 18

Thank You

OpEx Project PwC Live Example • 15. September 2013