1. 1 Design. Build. Ship. Service. HR Lean (US & Canada) Project Owner: Leslie Thompson Project Sponsor: Jeff Minyard Project Team: Ana Abina, Monica Ek, Martin Morales FY11 & FY12

2. 2 Design. Build. Ship. Service. HR Lean – Agenda Overview Lean Office Strategy (HR, IT, & Finance) Overview Project Charter Key Milestones Regional HR Lean List Next Steps

3. 3 Design. Build. Ship. Service. Lean Office Strategy (HR, Finance, & IT) Objective: 1. Identify the 8 wastes at Office area using VSM for further Kaizen opportunity. 2. Secure engagement of leadership and team through Kaizen participation. 2. Establish Best Practices to share and yokoten for further Office productivity improvement. Scope: Office functions : IT, Finance and HR. Measurement: 1.Measured on a Quarterly Basis 2.Measured at a site level (Reported by Business Excellence) 3.Must be HR led to count towards HR Lean Office 4.Only HR participants involved can get credit for their site

4. 4 Design. Build. Ship. Service. 4 Lean Office Strategy (HR, Finance, & IT) Embedded as a part of current Operation LMT, Element Number 5- VSM (Changes are highlighted in Red) The score for VSM element as a part of Operation LMT in turn will become Office LMT score. Our target remains to take the same >= 3.

5. 5 Design. Build. Ship. Service. HR Lean Charter (US & Canada) Objective: 1.Develop more efficient and effective HR Operation processes. 2.Work with Sites to meet the GBE Lean Office Strategy requirement. 3.Develop VSMs and road maps for Regional Key HR processes. 4.Increase level of Lean activity 5.Embed Lean in HRs DNA. 6.Trystorm Scope: USA-Canada. Processes that are driven or supported by HR Operations. Regional Deliverables: 1.HR List of Regional Lean projects for US-Canada/ Prioritize Lean List of HR Activities 2.Identification of training requirements for all HR Operations 3.VSM (Roadmap) Key Processes 4.Lean activities through the remaining FY11 & FY12 to support site goals.

6. 6 Design. Build. Ship. Service. HR Lean Charter (US & Canada) – Key Milestones 9/30/10 HR List of Lean regional projects for the USA-Canada Identification of HR Lean Training requirements for HR Operations 10/19/10 Assign HR Lean Training to HR Operations Prioritize Regional Lean List of HR Activities 10/30/10 Communicate to sites the HR Lean Office Strategy and HR requirements for site level participation November- March VSM (Roadmap w/ list of potential Kaizen(s) and SGA(s) Key Regional Processes (November 8 th & 9 th : HR Steering Team, Charlotte, NC) HR Operations Complete Training by December 31 st or before Kaizen event Sites work with local Business Excellence to identify Site Level SGA & Kaizen (Metric reported through site BE and HR Steering Team has visibility to the tracking) Shinghi – Austin (February – TBD) FY12 Launch Regional Kaizen and SGA activity FY11 & FY12 Track metrics against Lean Office Strategy for HR Site Goals for All Office Areas per quarter: 1 VSM 2 Kaizen

7. 7 Design. Build. Ship. Service. Regional HR Lean List (Priority) Improve efficiency of LOA (Return to Work) Result: Current State VSM Opportunity: Kaizen (3) Opportunity: SGA (1) Performance Rating NE Employees Result: Current State VSM Opportunity: Kaizen (1) Opportunity: TBD (1) Termination Process Result: Current State VSM Opportunity: Kaizen (2) Opportunity: SGA (1) Hiring Process Grade 25 and Below Result: Current State VSM Opportunity: Kaizen (3) VSM 11/8-11/9 All Opportunities will incorporate lean tools including Future State VSM

8. 8 Design. Build. Ship. Service. Eastern Western Central Canada TBD

9. 9 Design. Build. Ship. Service. VSM Activity

10. 10 Design. Build. Ship. Service. VSM Activity: Benefits of Coming Together Best Practice Shared through differing processes and in some cases we realized that we didnt have a process just had to accomplish the task. Streamlining the process touches and working together helped us identify the opportunity for improvements.

11. 11 Design. Build. Ship. Service. Next Steps Approve HR Regional Lean Office Charter Approve HR Lean List Priority (Select Regional VSM) – Selected LOA and Termination as priority then as time is available complete any or all of top 5 Approve VSM Option (Steering Team or Within Regions) – Approved Steering Team meeting on November 8 th & 9 th in Charlotte, NC Communicate during regional Staff Calls Lean Office Strategy and Site Level Participation Review Outcome of VSM for Priority SGA & Kaizen Opportunities Approve Priority List for SGA and Kaizen Opportunities from VSM exercise Communicate Opportunities to the HR Ops Organization Schedule Kaizens, Leaders and Participants Launch Kaizen Activity in Creedmoore – January (TBD) EXECUTE