1. Lean Office: - Payroll & TM project - March 2015

2. 2 Scope & Goal Analysis phase Implementation phase Results & Next steps Agenda  Scope & Goal  Analysis phase  Implementation phase  Results and next step

3. 3 Scope & Goal Analysis phase Implementation phase Results & Next steps The scope of this Lean Office Project is the payroll departments at the head office and at the manufacturing sites. In the intention of the Sanofi HR Director, this scope represents the pilot project to start a Lean journey in the offices. Payroll Project Scope HEAD OFFICE BRINDISI GARESSIO ANAGNI ORIGGIO SCOPPITO -Pilot: payroll departments at the head office and at the manufacturing sites- NOVENTA PADOVANA

4. 4 Scope & Goal Analysis phase Implementation phase Results & Next steps By implementing the Lean Office approach, executives’ goal is to streamline process activities (less waste in the process). To achieve the set goal: To map the core processes in order to: - identify opportunities for improvement - identify any overlaps / redundancies between head office and sites To identify gaps between IT tools and the “what is expected ” To develop the customer / supplier approach: to get in time and quality the standards required infos to manage payroll activities The goal

5. 5 Scope & Goal Analysis phase Implementation phase Results & Next steps In accordance with Lean Sanofi approach, the set roadmap includes two main phases : the analysis and the implementation phases as shown in the below action plan The roadmap Lean Office Payroll path Implementation of plans towards improvement Training, Change Management Sharing action plan Standard in place Consolidation and auditing Analysis of the current state and to-be model (VSM tool) Phase 1Phase 2 May – July 2014 Sanofi Standard Lean approch Sep 2014 – March 2015

6. 6 Scope & Goal Analysis phase Implementation phase Results & Next steps Agenda  Scope & Goal  Analysis phase  Implementation phase  Results and next step

7. 7 Scope & Goal Analysis phase Implementation phase Results & Next steps The first analysis step consisted of two training sessions (theoretical - practical) on Lean Office Training Training goals: To know the basic Lean principles (5 principles, value / non-value adding, Lead Time, Process Time, Waste) To implement the approach in office processes (waste value in offices) To know the tools for measurement (stopwatch, camera, recording times, interviews…) To understand how to measure the process performances (indicators) To understand how to set activities towards improvement in the short and long term To understand the importance of teamwork -Lean office Team session -

8. 8 Scope & Goal Analysis phase Implementation phase Results & Next steps During the analysis, following the Sanofi standard, we used Value Stream Mapping tool, to detect value adding and non value adding activities, critical issues and the estimated timeline. Processes mapping By means of interviews the following data were collected: Value adding and non value adding activities (taking into consideration all activities defined as waste: unnecessary controls, unnecessary printing and filling, reminders, search for information missing, inadequate training, etc.…) Aspects to focus on/critical issues Process times (time required to carry out activities and number of people involved) -Standard VSM Sanofi--An example-

9. 9 Scope & Goal Analysis phase Implementation phase Results & Next steps Projects towards improvements identified System of monthly controlling and sharing of KPIs for anomalies System to attack waste based on these indicators (PDCA ) To define Best (common) Practices about: - time management - temporary staff management in SAP - payroll variances management To define front office opening hours To develop a self-service system for front office activities To strength the usage of ESS (e.g. communication deadlines, …) To strength the usage of TM (e.g. management shifts...) Electronic filing of pay slips To rationalize and standardize reports - Project - 2. Best practices (TM and pay slips) 3. Rationalizing reports 4. Strengthening IT system - Operative objective - 1. First Time Through Four the project identified to reach the goal:

10. 10 Scope & Goal Analysis phase Implementation phase Results & Next steps The implementation of the identified actions on the four projects strive to free up time dedicated to non-value adding activities (NVA) to focus on value adding activities (VA) actually not adequately valued Savings to be achieved The time so saved can be focused on: -To increase time for self training -To increase time for training to operators -To launch activities towards continuous improvement -To decrease the gap between worked and theoretical hours - Ratio between value adding (VA) and non value adding (NVA) timing -

11. 11 Scope & Goal Analysis phase Implementation phase Results & Next steps Agenda  Scope & Goal  Analysis phase  Implementation phase  Results and next step

12. 12 Scope & Goal Analysis phase Implementation phase Results & Next steps The implementation activities have been conducted with dedicated operative team Project team 1. First Time Through 2. Best practices 3. Rationalizing reports 4. Strengthening IT system

13. 13 Scope & Goal Analysis phase Implementation phase Results & Next steps Agenda  Scope & Goal  Analysis phase  Implementation phase  Results and next step

14. 14 Scope & Goal Analysis phase Implementation phase Results & Next steps Two main results so far: Soft results: -Sens of belonging increasing (payroll community view) -Awareness that “Things can change” -Development of a continuous improvement approach Hard results: -Decreasing of waste activities in line with expectation (ex. less rework, less expediting activities, less paper, …) -Process / activities standardization Results

15. 15 Scope & Goal Analysis phase Implementation phase Results & Next steps To sustain the results: - Process auditing approach : to monitor and verify and fine tune - Communication and involvement : to enlarge the knowledge about the Lean Office approach and to transform a “project” in a “day by day activity” Next step

16. Thank you March 2015