Information is TE Connectivity Confidential & Proprietary Do Not Reproduce or Distribute April 2012 A standard set of tools and a proven methodology TE.

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Information is TE Connectivity Confidential & Proprietary Do Not Reproduce or Distribute April 2012 A standard set of tools and a proven methodology TE Operating Advantage (TEOA) A star assessment and evaluation system Key performance indicators (“metrics”) A training program, with a “learn-by-doing” approach A leadership and management development program

Information is TE Connectivity Confidential & Proprietary Do Not Reproduce or Distribute April 2012 We have to outperform aggressive global competitors that are improving their businesses every day TE must have the most effective and cost efficient operations to reach $20 billion in sales by 2015 Customers Demand It The customer demands continuous improvement in our quality, price and delivery “and service” Competition Is Relentless20x15 Requires It Why TEOA in Procurement? Global Procurement: Influences all four customer demands Major driver in lead times and cost Procurement Transformation Necessary to enable 20 X 15

Information is TE Connectivity Confidential & Proprietary Do Not Reproduce or Distribute April 2012 Procurement Engineering Operations Other Functional Areas Productivity Finance validates the #’s Supported by TEOA Enablers and ONE TE Voice to Suppliers Competitive Sourcing: LCC / localization Optimization Make or buy Value Analysis: Rationalization Substitutions TE Specs Value Engineering: GMSS Benchmarking Teardown Value Analysis: Scrap Reduction Process Improvement Competitive Sourcing: LCC / localization Make or buy Idea generation Implementation One Shared Target : Engineering Procurement Operations OperationalTechnicalCommercial Collaboration Anchored by TEOA