Tyco Safety Products Six Sigma

Projects Aligned with Business Goals Improve Customer Service, EBIT, Cash Strategic Business Goals Improve Customer Loyalty / Retention Improve Operational Efficiency Become More Capital Efficient Voice of Customer Service Performance Benchmark Competitors Decrease defects/rework Cycle Time Improvement Opportunities to improve capital efficiency

Tyco Safety Products Deployment Manufacturing – Lean and Six Sigma First projects will be quick wins inside manufacturing for FY03 savings Master Black Belts Assess and focus on opportunity at the interfaces with Sales organizations Design for Six Sigma Address top line growth Voice of the Customer in the design Major commitment to the Six Sigma program

Manufacturing – Lean and 6s Many manufacturing organizations have lean or continuous improvement programs in place Excellent success with Lean methods Train up to 35 Black Belts in Phase 1 Special 5 week DMAIC and Lean class for 30 Five seats available in transactional class Classes have not been filled Black Belts are generally full time positions Need 2 projects with $200K savings each for class

Master Black Belt assigned for the U.S. Master Black Belts Master Black Belt assigned for the U.S. Experienced in Manufacturing, Transactional, and DFSS Master Black Belt in plan for Europe Validate MBB allocation per business unit Assist manufacturing facilities with major project identification and selection Identify and scope the large projects located on the interface to the Sales units Drive results on major project clusters Opportunity more than $3M

Major focus for the Safety Products deployment Design for Six Sigma Major focus for the Safety Products deployment Additional tools for project leaders, designers, and product line managers Incorporating the Voice of the Customer in design Robust Design Significant multi-year revenue opportunity Greater involvement of customer, manufacturing, service in the product development process

TFS6S DEPLOYMENT PROCESS – Phase 1 Pre-Deployment Planning Complete Deployment Champion Complete Executive Summit March 17 - 18 Business Unit Summit April 7 - 8 Project Champion Session April FaStart Training April Replicated across all 3 Business Units May - August Black Belt Training Leadership Overview May/June Green Belt Training August - December

Tyco Fire and Security Six Sigma Deployment Schedule March April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April Phase 1 Black Belt ADT U.S. SimplexGrinnell Tyco Safety Products - Mfg Tyco Safety Products - DFSS Phase 2 – Black Belt International Assessment Latin America Worldwide Fire Asia Australia/New Zealand Simplex Grinnell Tyco Safety Products - DFSS MBB MBB Phase 3 Black Belt ADT Europe Green Belt Training Begins

Six Sigma Deployment Schedule Manufacturing/Transactional TFS Executives Complete TSP Executives 4/7 – 4/8 Mfg. Product Champions 4/22 – 4/24 Mfg. BB FaStart 4/29 – 4/30 Mfg. Black Belts 5/5 – 5/9 Mfg. Black Belts 6/2 – 6/6 Mfg. Black Belts 6/23 – 6/27 Mfg. Black Belts 7/21 – 7/25 Mfg. Black Belts 8/18 – 8/22 Design for Six Sigma Design Champions Complete DFSS Black Belts 5/12 – 5/16 DFSS Black Belts 6/9 – 6/13 DFSS Black Belts 7/7 – 7/11 DFSS Black Belts 8/4 – 8/8 DFSS Wave 2 September

Tyco Safety Products Steering Committee Senior Executive Clive Weston Micheal Corkery David Stonehouse Mike Fieramosca Mike Stewart Mark Slaughter TSP Members Gerry Head Exec –Paul Gillard Fin – J. Anderson SSA Members Committee Co-chairs Tyco Safety Products Rick Henderson Six Sigma Academy Dan Sommers Deployment Paul Giessler Deployment Manager Bruno Lenart Finance Jim Anderson DFSS Rick Henderson Back Office Support Funct. Dep. Champions HR – Bob Hetzel Finance – Bill Bufé IT – Rob Gaynor Comm/Training – Kylie Seymour

BU Steering Committee Operations Prioritizes Six Sigma Project Proposals Conducts Financial Review Participates in Tollgate Reviews Approves Project Financials Reviews/Approved Six Sigma Projects: New Project Proposals: Project Charter drafted by BB/MBB Includes Proposed Scope, estimated cost, benefits, benefits measurement systems, resource requirements Steering Committee considers Scope, Measurable Hard benefits Context -Appropriate for BU at this point in time Tollgate Reviews: Summary prepared by BB/MBB Highlight significant changes from previous tollgate review Identify barriers, issues, needs Discuss next steps Reviews/Approves Benefits Measurements to Approved or Completed Projects: Need for change prepared by BB & MBB, reviewed with BU Finance Projections prepared for impact to program of proposed change If Steering Committee does not reach agreement to change, benefits measured with previously accepted method (method approved at time of Control Phase, or subsequent agreed method) Addresses HR issues: BB & MBB Nominations BB & MBB Certification Reward & Recognition Program Placement issues (Tyco & SSA) – individuals that need to be moved out of six sigma program Reviews Results - Program performance report prepared by BU Champion Highlighted Individual projects Pipeline review Current Month performance YTD & FY Forecast Program to date summary Results summarized, reported to TFSS Steering Committee

Project Selection Approaches Major Business “Issues” (Top Down Approach) Critical to Quality, Cost, Delivery Relevant Processes Project Initialization Operational Needs Business Process/ Industrial (Bottom up Approach) Baselining Product/Process CT Tree (As Six Sigma Matures) Projects Pool Critical to Satisfaction Customer Needs

Project Selection Projects Aligned to Strategic Objectives Identify Business Levers Cash Flow, ROE, Customer Satisfaction, Asset Utilization etc. Business Unit Specific Flow Downs Developed Develop BU CTQ Flow Downs Scope Projects Properly Scoped Projects ensure timely execution Built on proven project management principles Complete Project Charter Projects Aligned to Strategic Objectives

Project Selection Review One filter used to allocate resources to projects is the 2 X 2 matrix. The 2 X 2 matrix is one of the simpler approaches, but an approach that has withstood the test of time… where will I get the biggest impact – quickest. Ease of Completion Hard Easy Value Low-Hanging Fruit!