Business Performance Improvement & Continuous Improvement

Safety Moment

Company Seven power plants 825,000 customers 30,000 square mile distribution system 7 Wind Farms providing 800 MW of power

Continuous Improvement at OG&E Business Value Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards AND Transform Culture

OGE Culture

Our Culture Is Based on Common Values and Beliefs By creating member experiences that reinforce these beliefs, we can motivate actions that create the desired culture By creating member experiencesthat reinforce these beliefs,we can motivate actions that create the desired culture

Accountability Model

Continuous Improvement Training Awarenes s Local Team Green Belt Champion

Value Awareness Training the worth of a product or service, by a customer, based on its usefulness in satisfying a customer’s need

Waste Awareness Training any activity that adds costs or time but does not add value

TIMWOOD Awareness Training recognizing the seven (7) types of waste

Continuous Improvement at OG&E Business Value Known Solution Easy to Implement “Just Do It” Simple Opportunity AND Transform Culture Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards Three Opportunity Types

S pecific M easurable A ttainable R elevant T ime-bound What: What will the idea accomplish? Why: Benefits of accomplishing the idea. Who: Who is involved to execute the idea? Where: Should the idea be implemented? How much cost savings? How much time savings? Which type of waste will be removed? How will we know when it is successful? How can the idea be accomplished? How realistic is the idea and the constraints? How will it be controlled and sustained? When and how long? Does the idea support our strategic goals? Is this the right time? Is it applicable to our values and beliefs? How significant will the impact be to OG&E? Can it be done in 6 months? Can it be done in 3 months? Can it be done in 3 weeks? What can I do today? Improvement Ideas

Continuous Improvement Training Awarenes s Local Team Green Belt Champion

Local Team Manages Ideas EvaluatedInvestigatedImplementedMonitored Evaluated by Local CI Team, monthly meetings Member may be asked for more information Investigated by one member or a team Submitter will help with investigation Implementation and Sustainability Plans will be developed Approvals will be sought Implementation Plan will be followed Trial implementation may take place Sustainability Plan will be followed Benefits will be tracked Success will be celebrated The CI Team will be in communication with members throughout the process Members may be assigned to a Team to investigate and work on the idea

Continuous Improvement at OG&E Business Value Known Solution Easy to Implement “Just Do It” Simple Opportunity Some Analysis Needed Implemented Locally Team Approach Local Opportunity AND Transform Culture Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards Three Opportunity Types

Continuous Improvement Training Awarenes s Local Team Green Belt Champion

Journey to Green Belt Certification Intro to LSS (4 hours) Pre-Course Work (14 hours) LSS Green Belt (5 days) Project Execution (4-6 months) Project Presentation & Certification

Continuous Improvement at OG&E Business Value Known Solution Easy to Implement “Just Do It” Simple Opportunity Some Analysis Needed Implemented Locally Team Approach Local Opportunity Detailed Analysis Crosses Functional Areas Focused Team Effort Complex Opportunity AND Transform Culture Process Development Cost Savings Efficiency Gains Green Belt Program Idea Factory Training Visual Boards Three Opportunity Types

Continuous Improvement Training Awarenes s Local Team Green Belt Champion

Engage All Levels Deployment Champion (e.g. Director or Vice President) CI Champion (e.g. Manager) CI Champion Local CI Teams (members and supervisors)

Why CI? Why Now? CI has been around a long time at OG&E Some successes, some failures Ember has never died out History Environment is rapidly changing We need to be customer-centric Opportunities demand responsive culture Current Situation New leaders, new management approach Members want to be engaged Consistent approach, training, strategy Success Factors

Plan for 2016 Deploy our training program into additional areas of the company Recruit and train another 25 Green Belts Incorporate Champion training into training plan for new supervisors Optimize Work Processes will be a key competency in our Foundations of Leadership program Drive the use of Visibility boards and metrics Increase awareness through CI Day Out and other events

April 1 st Tour Distribution Control Center I O C Resource Coordination CI Deployment

April 1 st Tour - Logistics Lunch at Francis Tuttle Bus to OGE Facility Sign In Sheets

Questions?

Thank You and Be Safe