Copyright © Six Sigma Academy International, LLC All Rights Reserved 2006 Green Belt Deployment – Follow Up January 17, 2006

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 1 Agenda Breadth of SSA service offerings Experience as a Six Sigma vendor in a worldwide deployment Resourcing Plan Delivering on Merck’s Plan -Performance Management tools and techniques -Mentoring Support Costs Why Merck should hire SSA

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 2 Illustrative Road Map: Key Steps Goals: -Determine approach to meet goals and objectives -Organizational alignment to the approach -Establish deployment policies and processes SSA Services: -Executive Training -5 Pathways/Project Selection/ Alignment -Project Champion -Change Management -Financial Support Goals: -Preparing ‘Belts to drive sustainable results -Program Management development -Creating organizational awareness of results SSA Services : -Black Belt Training -Green Belt Training -DFSS Training -Lean (training and event support) -Mentoring and support -Financial validation support -Project and Program measurement tools Goals: -Master Black Belt identification and preparation -Transition to the organization’s internal MBBs -Transition all oversight activities to the organization SSA Services : -MBB Training -Train the Trainer (BB/GB) -Program management and measurement tools -Mentoring process SetupExecuteSustain

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 3 SSA Capacity – Global Examples 2.5 year deployment Dedicated on the ground deployment/project support Integrated Lean and Six Sigma 8 Waves of Black Belt training 15 Waves of Green Belt Training 2.5 year deployment 51 Executive Sessions 100 Project Champion Training Sessions 116 Waves of BB training (over 2000 BB’s) Currently in 4 th year of deployment 17 Waves of Black Belt training (over 300 BB’s) 2 Waves of Master Black Belt training 30 Waves of Green Belt Training Currently in 3rd year of deployment Integrated Lean and Six Sigma Dedicated on the ground deployment support 1 Wave of Master Black Belt 1 Wave of Black Belt training 5 Waves of Green Belt training 2.5 year deployment Dedicated on the ground deployment/project support 20 Executive Sessions 9 Project Champions Training Sessions 57 Waves of Black Belt training 1 year deployment 7 Executive Sessions 11 Project Champion Training Sessions 31 Waves of training (over 600 BB’s)

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 4 Resource Plan To Meet Merck’s Needs We believe that your stated goal of 500 certified Green Belts will require a significant commitment of resources to expedite classroom training and facilitate effective coaching, mentoring and support project close-out. SSA will meet those needs by ramping up to a steady state commitment of: -2 dedicated Instructors to conduct all US waves -2 dedicated Lead Mentoring Resources for coaching and closing projects -Additional Assistant Mentoring Resources for managing peak project activity periods and to match specific skill sets to unique project needs -Resource aligned by region to train and support projects (LA, EU, AP) -Project Mentors will participate in first week of training to drive consistency

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 5 Delivering On Merck’s Plan Key Drivers to Success: Establish goals/milestones: -Training locations & languages -Availability of Green Belts & timing of training -Project identification, selection & chartering Training material preparation: -Merck, SSA or customized material -Language considerations Project management: -Mentoring -Reporting/tracking -Overall program performance

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 6 Timeline and Rollout Plan To ensure Merck’s Green Belt program goals are met, we recommend a timeline and rollout plan biased towards the first half of This schedule will ensure improvements are sustained prior to Green Belt certification.

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 7 Training Content Configured to Merck’s Needs SSA believes that the best curriculum is one that communicates sophisticated concepts in ways that are easily understood. To make concepts relevant to Merck employees we will rationalize our proven materials with those currently in place at Merck to ensure: A look and feel consistent with Merck standards Content aligned with existing Black Belt materials Examples relevant to Merck Job aids Green Belt networking

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 8 Project Management & Mentoring MBB Submits Project Plans & Status Reports Deploy. Mgr. compiles data & distributes BB prepares & Updates Project Plan BB Reviews Project Plan with Champion & MBB MBB Reviews Project Plan & finalizes report BB Updates Project Plan Based on review MondayTuesday WednesdayThursday Friday MBB & Belt Meet for one hour per week for a project work session Weekly Project Plan & Status Report Update Process End Process Cycle Begin Process Cycle

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 9 Sample Mentoring Meeting Agenda Project Management -Review list of previous commitments -Review current work -Develop next steps/commitments -Evaluate tool usage in template -Record comments relevant to (1-3) in template -Communicate comments, commitments and scores to GB, get agreement -Send completed template with note detailing date for next session and high level commitments. (Copy - PC, DM Within - 24hrs) Working Session - Help GB past difficult data analysis - Walk process with GB - Assist GB with teaming - Specific tool application help - “Work the project with the GB”

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 10 Structured Coaching and Mentoring SSA coaches Green Belts using a structured approach that breaks down project work into specific tasks for which the Green Belts can be held accountable. This tactical approach can be used as an overlay to most major project tracking systems or executed manually. Complete Green Belt Project Checklist Project Phases are Broken Down into executable tasks

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 11 Performance Accountability By coaching, mentoring and tracking progress on a individual Green Belt level allows us to roll-up data on a deployment level that ensures visibility to project progress as well as individual performance and development.

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 12 Certification Documentation As projects progress toward closure, we recommend using a set of tools that: Facilitate organizational knowledge management Ensure accountability for implementing and sustaining the improvement Calculate the financial impact associated with the project

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 13 Certification Process SSA will develop a Project Close-out Process specific to the situational needs of Merck. The process may evolve over time to meet capacity needs, however the foundation should remain consistent to ensure the quality of closed projects.

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 14 Managing Overall Program Performance Monitor project phases and manage progress: Information collected from Project Evaluation forms is used to drive summary reports: Identify IT dependent projects: Average Days to Close: Closing forecast allows us to manage workload & focus on near-term actions: Financial benefits: Examples of summary information used to monitor & manage deployment

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 15 Investment Summary Assumptions based on Merck’s stated goal of 500 Certified Green Belts by the end of 2006: Training: 20 Green Belt waves (1 trainer per class) $50,000 per wave of training = $1,000,000 total for training (includes IP) Mentoring Support: 1 hour of support for each Green Belt per week (estimated 4 months) Equivalent to 8,000 hours of support $200 per hour = $1,600,000 total for support (mix of onsite and phone) Total for training and support = $2,600,000 * * Travel and Expense will be billed separately

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 16 Why Choose SSA? Experience - -Regularly engaged by CEOs to lead enterprise-wide deployments. -Over 70 major corporations and 30,000 process improvement projects over the past 10 years. -Extensive Multinational deployment experience. Our Process and Commitment - -We do much more than train – we actually plan, drive, and manage deployments with clients delivering unparalleled performance and bottom-line results. -Our professionals work hand-in-hand with your staff to drive deployment success. Our optional performance-pay model goes a step further by aligning our compensation to your goals. Our Team - -Our professionals are former Six Sigma business leaders from corporations such as GE, AlliedSignal, Ford Motor Company, DuPont, Kodak, and Merrill Lynch. -Our management team has led leading organizations including Hyatt Hotels, Office Depot, and Goldman Sachs. We bring overall business acumen to each client.

Copyright © Six Sigma Academy International, LLC All Rights Reserved Pg 17 The following are trademarks and service marks of Six Sigma Academy International, LLC: Breakthrough Lean ®, Breakthrough Strategy ®, Breakthrough Value Services ®, Breakthrough Change Strategy SM, Breakthrough Design SM, Breakthrough Diagnosis SM, Breakthrough Execution SM, Breakthrough Sigma Lean SM, Breakthrough Six Sigma SM, Breakthrough Software Design SM, FASTART SM, Six Sigma Gold Belt TM, SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIME SM. Six Sigma is a federally registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc. VarTran is a federally registered trademark of Taylor Enterprises. Six Sigma Academy International, LLC 630 Fifth Avenue, Suite 1900 New York, New York