2015 Enterprise Management System

Agenda Introduction of the PAS Enterprise Management System 2015 Productive Improvement Plan (PIP) Time Line Site Schedule Phase – 1, Analyze the Process Commodity Analysis Motion Study Time Observation Analysis Phase – 2 Improve the Process Identify improvement opportunities Assign resources Initiate the improvement pilot

Agenda Phase – 3, Review the Results Track the results Analyze the data Adjust to plan Phase – 4, Standardize the Process Establish new standards Document the ‘new’ process Audit the Process Develop a process audit system Checklist /protocols Schedules Corrective Action Process Resource Requirements Identify and fill resource needs Develop deployment plans Train and qualify personnel

In pursuit of world class performance, PAS has implemented a process-based enterprise management system that is designed to achieve excellence in production, services and customer satisfaction.

Enterprise Management System (EMS) The PAS EMS model is a process-based model based on the plan- do-check-act improvement cycle. Customer requirements are defined and communicated under “Customer Planning”. Resources are allocated under “Management Responsibility”. Processes are established and implemented under “Production Realization”. Customer satisfaction and key internal expectations are measured, analyzed and improved through “Measurement, Analysis and Improvement”.

Standardize the Processes SITE Application Plan Analyze the Commodity Do Improve the Process Check Review the Results Act Standardize the Processes BASELINE Expectations IMPLEMENT Changes PERFORMANCE Analysis ADJUST for Accuracy IMPLEMENT Countermeasures ESTABLISH new Expectations

2015 Productivity Improvement Plan (PIP) EMS Implementation Project Lead, Matthew Bellonis Deployment Time line Site Schedule

Time Line Contract – Industrial Engineering Services – starting 2/9/15 Align P/E personnel to with IE representative at each site visit 1) The Objective statement should be the same as that on the charter. The Y, baseline and target should be stated. 2) Benefits should mention a $ figure and where the $ came from 3) Project Team should mention names and titles of core team

Site Schedule

2015 Productivity Improvement Plan (PIP) Phase- 1 Project Lead, Matthew Bellonis Commodity Analysis Requirements Assessment

Commodity Analysis Commodity Analysis - Requirements: Commodity Analysis 1 day /per site FA/SM/PE Input Requirements: Volume of each commodity Total revenue and labor margin Variation of profitability of each commodity Terminal impact and profitability of each commodity Output Requirements: List of key commodities (80/20 rule) Commodity profitability impact Labor margins Unit cost

Workflow Analysis Motion Study - Requirements: Workflow analysis .5 day / per commodity PE /IE/ SM Input Requirements: Walk process Process scope (start /stop) Identify workflow elements Output Requirements: Complete a high-level workflow map Identify each serial & parallel work element Develop a standard time observation form Capture each element within the workflow process Note: Prove the accuracy of the time observation form before putting it into use (walk the process)

Time Observation Analysis Time Observation Analysis - Requirements Time Observation Analysis 2 or 3 days-based on commodity PE/IE/SM Input Requirements: Review: the workflow elements and associated time observation form with team Obtain multiple copies of the time observation form (capture data on time observation form) Walk the entire process to validate workflow sequence for accuracy Output Requirements: Complete approximately 35 time observations (or as many as possible) for each work element Document a ‘current state’ workflow process map – capture the following data on the map: Cycle time (standard allotted time) – determine, mean, median and standard deviation (SD). Combined process lead time (combined standard allotted time) Calculate lift yield at each lift point Identify equipment use and lift capacity per piece of equipment Identify crane used e.g. ships crane, mobile etc. Crane lift capacity Crane cycle time Identify process waste (idle people, equipment, crane etc.,) Complete time observation package

2015 Productivity Improvement Plan (PIP) Phase- 2 Project Lead, Matthew Bellonis Improve the Process Requirements Assessment

Improvement Process Improvement Review 1 day /per event OA/IE/PE/SM Input Requirements: Completed time observation analysis package Process observations Output Requirements: Mark-up the ‘current state’ workflow map Capture process waste Provide improvement opportunities to eliminate waste Document individual improvement proposals Perform a cost benefit analysis /for each improvement option Initiate a ‘future state’ workflow map Initiate a RACI form (identify areas of responsibility) Complete the presentation /improvement plan Note: Processes may not require improvement changes if the process does not contain excessive waste however a standard performance time must be calculated and provided.

2015 Productivity Improvement Plan (PIP) Phase- 3 Project Lead, Steven Leggett /Stanley Canepa (software Support) Data Analysis & Performance review Requirements Assessment

Performance Review 1) The Objective statement should be the same as that on the charter. The Y, baseline and target should be stated. 2) Benefits should mention a $ figure and where the $ came from 3) Project Team should mention names and titles of core team

Performance Review (manual data acquisition) Post-Performance Analysis 2 days after vessel OA/PE/SM/IT Input Requirements: Obtain performance data at the commodity level (where single commodities apply such as auto or containers defer to localized plans e.g., birth to POR etc. Moves per hour Estimated process cycle time – resulting from moves per hour Travel speed, Unexpected or planned wait times Gang structure Rework (actual incidents /time to resolve) Observations /occurrences impacting vessel performance Output Requirements: Compare actual moves per hour vs plan (track on dashboard) Correlate (+/-) move status to performance standards and identify root causes Initiate formal corrective action against underperforming performance Implement ‘best practices’ where applicable for high-performance If commodities trends indicate that performance is below normal standards, initiate countermeasures to get- back-to standard performance.

Commodity Review Process Management Review Process .5 day OA/PE/SM/VP Input Requirements: Standard review package (produced and maintained by respective Operations Analyst) Actual moves per hour vs plan (track on dashboard) Actual yield vs plan (track on dashboard) Estimated process cycle time – resulting from moves per hour (track on dashboard) Open corrective action issues against underperforming commodities Implementation status of ‘best practice’ opportunities. Countermeasure plans for ‘low performing commodities’ - get-back- to-standard performance. Output Requirements: Structured review process /notes Dashboard update Corrective action updates against underperforming commodities Countermeasure plans for ‘low performing commodities’ to get-back- to-standard performance. Approved improvement solutions and/or alternative options Revised action items (RACI) Reviewed minutes and path forward plan(s)

2015 Productivity Improvement Plan (PIP) Phase- 4 Project Lead, Matthew Bellonis Process Standardization Requirements Assessment

Workflow Process Outline Standard Work 3 days OE/PE/SM/VP Input Requirements: Time observation analysis - (baseline standard allotted time and yield) Specific process observations, current state workflow analysis (visual map) Proposed improvements options & solutions Marked-up presentation /add notes Approved improvement solutions and/or alternative options Output Requirements: Initial draft - commodity discharge /load visual operating procedure /work instruction Initial draft – 1 page visual standard work document containing: method /process steps gang size / application equipment/ spreader bar/materials motorized equipment /OEE rate crane lift capacity lift yield per hour, moves per hour, cycle time special instructions

2015 Productivity Improvement Plan (PIP) Project Lead, Matthew Bellonis Workflow Audit Process Requirements Assessment

Workflow Audit Process

Workflow Audit Process Workflow Audit Process 3 days OE/PE/SM/VP Input Requirements: (when to initiate audit cycle) Time based – 3 months after baseline installation After (+/-) changes in allotted standard cycle time After shift in targeted mean /time or yield Due to process changes e.g., stowage, packaging, handling etc. Due to installation of new and/or ‘best practices’ At the request of site management After a formal corrective action has been implemented Output Requirements: Audit schedule Audit format Audit routing /review structure Closed loop - corrective action process Validation of corrective action Follow-up verification plan

Resource Requirements Deployment Plan 2015 Productivity Improvement Plan (PIP) Resource Requirements Deployment Plan

Resource Requirements Operations Excellence Resources Matthew Bellonis Jay Watson – Corp. / Shared Services (immediate availability) Mike DeMeo – DLP candidate (start date - 2.01.15) Steven Leggett (start date - 2.16.15) Open position (interview process) SM Supt PE IE FA OA VPBU Site Manager Superintendent Operations Excellence Industrial Engineer Financial Analysis Operation Analysis Same

Operation Analyst Support Container NOLA Mike Demeo Break Bulk Auto Ro/Ro Bayonne Steven Leggett Open

Matthew Bellonis - Deployment Plan Coordinate IE / PA resources to accomplish commodity analysis for all scheduled sites by March 31 2015. Work with Stanley Canepa’s software development team to create standardized dashboard metrics using Tableau to support commodity performance reviews at all sites. Work with site financial analysts to establish targeted KPI’s labor margins for each commodity under review. Review overall progress /open action items and report status to necessary stakeholders. Complete projects in support of the overall ‘EMS’ effort. Participate in and support management reviews with all sites.

Steven Leggett - Deployment Plan Work on assigned team or with IE resources to accomplish commodity analysis. Work with Stanley Canepa (software support) to develop standardized dashboard metrics using Tableau to support break bulk commodity performance reviews. Work with site financial analysts to obtain LM and cost benefits for each commodity and planned improvement opportunity. Initiate, plan and execute scheduled management reviews with applicable stakeholders. Initiate regularly scheduled management reviews to track and report commodity status, open action items etc.

Mike Demeo - Deployment Plan Work on assigned team or with IE resources to accomplish commodity analysis. Work with Stanley Canepa (software support) to develop standardized dashboard metrics using Tableau to support applicable commodity performance reviews. Work with site financial analysts to obtain LM and cost benefits for each commodity and planned improvement opportunity. Initiate, plan and execute scheduled management reviews with applicable stakeholders. Initiate regularly scheduled management reviews to track and report commodity status, open action items etc.

Jay Watson – Chandler Jay Watson, Provide direction to PAS resources and/or work independently to accomplish the Phase-1 Commodity Workflow Analysis and Improvement Opportunity effort. Provide executive assistance and guidance in the development and deployment of the overall PAS EMS program.

PAS – Operational Roll-out Matt Bellonis Mike DeMeo Jacksonville Brunswick Pt Hueneme Baltimore Jay Watson Steve Leggett Napoleon City Docks Vancouver Bayonne PAS teams will work independently or with IE resources to meet the March 31 deadline. (Current time to complete baseline data analysis is ~5 days).

Best Practices / - Communication Establish a ‘best practices’ portal to support shared ideas /accomplishments etc., and assure that productivity improvements are discussed at all forums etc.