Financial Training Update Module ObjectivesApproach Finance 101 – 1 Day SSA Staff & Client Staff requiring general Finance introduction Understanding of how Business Decisions impact Company Financials Basics of Cost Accounting, Accruals, Accounting principles, Cash Flow understanding, Basic Financial Metrics Financial Statement Understanding New Effort Simulation – group exercise - classroom Finance 201 – 1 Day SSA Staff & Client Staff who need to understand financial impact of LSS Understanding of how and to what magnitude 6 Sigma projects impact a company’s financial performance & financial statements New Development Extension of Simulation from Finance 101 Group exercise - classroom Finance Project Chartering – 4-6 Hrs. SSA Staff & Client staff – writing good charters – financial benefits calculations Ability to write a well scoped charter to include benefit calculation MCs improve ability to charter, form, scope projects with clients Update Lecture/Workshop Exercises/Examples – classroom Finance Valuation, Prioritization & Selection – 3- 4 Hrs. SSA staff & client staff – focus on project valuation considerations. Understand Project Valuation by Financial Categories Understanding of business and accounting problems around valuation Creating a framework for prioritization New Development Lecture/Workshop Exercises/Examples – classroom Finance Policy & Processes (Finance Champion Workshop) – multiple meetings Client Finance Champion Educate Client on the intricacies of the Financial 6Sigma Processes Establish the rules of engagement aka the Finance Handbook Update Workshop with FC – series of meetings over time Fin Analyst Support Role – 1 Day Client Financial Analysts Introduction to Six Sigma & Orientation FA Role FA Responsibilities Project Workshop Update Lecture/Workshop Exercises/Examples - classroom

Finance 201 Project Ideas BS/Cash Flow: –DSO reduction Cost reduction: –Reduce cost of Raw Material (QC for RM) – also inventory project –Supplier consolidation project (reduce RM cost) – also inventory project –Scrap reduction project (probably select which mfg. step to apply improvement to) –Setup time reduction project (probably select which mfg. step to apply improvement to) – also inventory project –Reduce Temp training time – also inventory project –Reduce office Sq Ft requirements –Reduce Mfg. Sq Ft requirements –MFG cost reduction (lower rate temp?) Inventory Projects: - Also Mfg. efficiency –JIT purchases (less – or no - lead time on orders) –Improved scheduling –Demand planning –Obsolescence Sales projects: –Price increase (through better advertising, features?) –Volume increase (sales force effectiveness) –Improve forecasting (perhaps see estimate of next month’s orders

Sample Six Sigma project template Project Name:Reduce Office Space requirements Problem Statement: Office space usage is disorganized and inefficient – requiring more square footage than ….. Currently leasing 700 Sq Ft at a rate of XX/Sq Ft/Mo Objective: Implement 5s project/.controls to consolidate & reduce office space requirements by 20% before month-end. Benefits: XX Sq Ft reduction in office space, at XX/Sq Ft – resulting in a monthly benefit of XX