1. ’re-HYDRA-ted’ Business Case Response Frank Schaapveld
Senior Director Supply Chain Medtronic

2. Business Case Assumptions
Integration goals: - keep Hydra brand & market positions - accelerate profitable growth
In house manufacturing, DC & transport
BG led integration organization
PMO resources available to support Lean
Change Acceleration Program led by HR
Well functioning IT systems & data marts
No burning issues 3rd party DC/WMS
Supplier Contracts flexible/negotiable 2

3. ‘re-HYDRA-ted’ The Power of One
3 Wave Program ‘re-HYDRA-ted’ – The Power of One
Wave 1
Prepare & Launch
Install Integration Team
Shape the Program
Launch Change Management Program
10 Days
Wave 2
Quick hits
Alignment Sales
Improve MFG output
Alignment Suppliers
Integration OTC processes
Performance Mngt
90 Days
Wave 3
Future State
KAM program top 5
Footprint optimization
Leadership & structure
TBD

4. ‘re-HYDRA-ted’ The Power of One
Wave 1
Prepare & Launch
Part of overall BG led Integration team
Select strong project leader FS Sponsor
Identify key stakeholders
X-functional (sub)team - critical functions/positions - recognize need & will to change - full time available - BG Black Belts - determine TBV project members - team objectives (not yet personal)
All leadership -> yellow belt training
All SC employees -> 5S program
10 Days
Install Integration Team
Shape the Program
Launch Change Management Program

5. ‘re-HYDRA-ted’ The Power of One
Wave 1
Prepare & Launch
Deep dive assessment comparing strategy/value proposition BG/Hydra
Identification of integration synergies
Identification of Hydra process improvement opportunities (ST/LT)
Establish a shared need for change
First data analysis & diagnose
‘Connect’ with the integration goals (profitable growth / increase flexibility)
Define KPI dashboard
Communication planl
10 Days
Install Integration Team
Shape the Program
Launch Change Management Program

6. ‘re-HYDRA-ted’ The Power of One
Wave 1
Prepare & Launch
Apply Change Acceleration Process © General Electric
Communication Plan - frequent - transparent - reach all employees
Involve Works Council
Measuring employee satisfaction
10 Days
Install Integration Team
Shape the Program
Launch Change Management Program

7. Change Acceleration Process

8. Change Acceleration Process (cont’d)

9. Change Acceleration Process
Profile on change processes
100 75 50 25
Helpful tips:
Click on the individual dots to move them up and down the line.
To move the dots, be sure you see the crossed arrows when your cursor is resting on top of the dot.
If you need more dots, simply click on a dot, right click on the mouse and choose “copy.”
Right click again on the mouse and choose “paste.”
Once you paste it, you can click on the dot to move it anywhere in the document.
Leading
Change
Creating a Share Need
Shaping
a Vision
Mobilizing
Commitment
Making Change Last
Monitoring
Progress
Changing
Systems & Structures

10. ‘re-HYDRA-ted’ The Power of One
Approach Wave 2
Wave 2
Quick hits
90 Days
Alignment Sales
Improve MFG output
Alignment Suppliers
Integration OTC processes
Performance Mngt

11. ‘re-HYDRA-ted’ The Power of One
Wave 2
Quick hits
Define Product/Market value proposition
Identify required flexibility (mix, volume, new product/packaging)
Potential short term rationalization
Implement S&OP process - copy/paste from BG - clear expectation and R&R description - demand segmentation? - consensus process
Main KPI - order fill rate - forecast accuracy (personalized)
90 Days
Alignment Sales
Improve MFG output
Alignment Suppliers
Integration OTC processes
Performance Mngt

12. ‘re-HYDRA-ted’ The Power of One
Wave 2
Quick hits
Debottlenecking production - analyzes of line efficiency (technique, processes, people)
Process analyzes applying Lean Sigma techniques; - process mapping - Kaizen improvement sessions - failure tree analysis - prioritization of quick wins
Empowerment - 5S program - value contribution tree (cascade)
Main KPI - MFG output versus built plan (S&OP) - line fill rate
90 Days
Alignment Sales
Improve MFG output
Alignment Suppliers
Integration OTC processes
Performance Mngt

13. ‘re-HYDRA-ted’ The Power of One
Wave 2
Quick hits
Collaborative process mapping - Kaizen - Failure tree analysis - potential identification
Identify leverage with BG - centralize procurement process - connect with S&OP – transparency - volume concentration
Prepare for SNC or VMI/CPFR
Renegotiate contracts
Main KPI - Efficiency improvement procurement - $ spend reduction vs pre-merger
90 Days
Alignment Sales
Improve MFG output
Alignment Suppliers
Integration OTC processes
Performance Mngt

14. ‘re-HYDRA-ted’ The Power of One
Wave 2
Quick hits
Order intake - customer master - order processing - order information to customer
Production planning - implement best practice BG - centralize production planning
Distribution & transport - leverage BG DC & transport - stop contract 3PL - 1 consolidation shipment to customer
Main KPI - Efficiency integrated processes - $ spend reduction vs pre-merger
90 Days
Alignment Sales
Improve MFG output
Alignment Suppliers
Integration OTC processes
Performance Mngt

15. ‘re-HYDRA-ted’ The Power of One
Performance Management - clear job descriptions (R&R) - personal objectives (cascaded down)
Install operational reviews - performance vs KPI target - (pro-active) root cause analysis
Create safety, trust & accountability - process focus - allow mistakes - drive accountability - coaching
Establish recognize program
Main KPI - # employees with personal objectives - operational dashboard incl. narratives - illness rate (incl. illness frequency)
Wave 2
Quick hits
90 Days
Alignment Sales
Improve MFG output
Alignment Suppliers
Integration OTC processes
Performance Mngt

16. ‘re-HYDRA-ted’ The Power of One
Customer value chain collaboration
Process alignment (VMI/CPFR) - cross dock services - packaging re-engineering - VMI / CPFR
System integration (EDI / ASN)
Wave 3
Future State
TBD
Rationalization MFG location - where to produce which product (capacity, growth, lead time to market, total sc costs, large/small split)
Multi brand / packaging facilities
Change of MFG concept; recipe central – finishing local
KAM program top 5
Footprint optimization
Leadership & structure
Future state organization structure (balanced span of control, flat, transparent, process tuned)
Talent development program
Empowerment program
Employee satisfaction

17. ’re-HYDRA-ted’