1. Supply Chain Insights LLC Copyright © 2015, p. 1 Continuous Improvement Study Summary Charts July 2015

2. Supply Chain Insights LLC Copyright © 2015, p. 2 Agenda  Study Overview  Continuous Improvement Overview  Continuous Improvement Performance  Supply Chain

3. Supply Chain Insights LLC Copyright © 2015, p. 3 Study Overview

4. Supply Chain Insights LLC Copyright © 2015, p. 4 Respondents Primarily Work for Manufacturers; Average Company Size Is $5 Billion in Revenue and 14K Employees

5. Supply Chain Insights LLC Copyright © 2015, p. 5 Nearly Two-Thirds Work in a Discrete Industry

6. Supply Chain Insights LLC Copyright © 2015, p. 6 Respondents Are Primarily in Supply Chain or Finance Roles

7. Supply Chain Insights LLC Copyright © 2015, p. 7 Two-in-Five Are Managers/Leaders of Continuous Improvement Processes and All Are Familiar with Them

8. Supply Chain Insights LLC Copyright © 2015, p. 8 Those in Supply Are More Familiar with Continuous Improvement Process Than Those in Finance

9. Supply Chain Insights LLC Copyright © 2015, p. 9 Agenda  Study Overview  Continuous Improvement Overview  Continuous Improvement Performance  Supply Chain

10. Supply Chain Insights LLC Copyright © 2015, p. 10 Summary of Continuous Improvement Processes

11. Supply Chain Insights LLC Copyright © 2015, p. 11 Definition Given to Respondents

12. Supply Chain Insights LLC Copyright © 2015, p. 12 Respondents Report Having an Average of 105 Processes; Kaizen Events Are Most Common

13. Supply Chain Insights LLC Copyright © 2015, p. 13 Those in Discrete Industries Report Having More Individual Processes, Especially Kaizen Events and Lean Processes

14. Supply Chain Insights LLC Copyright © 2015, p. 14 Those Who Rate Their Most Familiar Process as High Performing Also Have More Processes Overall

15. Supply Chain Insights LLC Copyright © 2015, p. 15 Kaizen Events and Lean Processes Are the Most Familiar Processes Asked About

16. Supply Chain Insights LLC Copyright © 2015, p. 16 No Difference by Role in Terms of Process Most Familiar With

17. Supply Chain Insights LLC Copyright © 2015, p. 17 Companies Have Been Working on Most Familiar Process for 4 Years on Average

18. Supply Chain Insights LLC Copyright © 2015, p. 18 An Average of 8 Full-Time and 3 Part-Time Employees Work on the Most Familiar Process

19. Supply Chain Insights LLC Copyright © 2015, p. 19 Over Half of Most Familiar Processes Reach Across the Organization; Manufacturing Is Most Common Functional Area Reached

20. Supply Chain Insights LLC Copyright © 2015, p. 20 Agenda  Study Overview  Continuous Improvement Overview  Continuous Improvement Performance  Supply Chain

21. Supply Chain Insights LLC Copyright © 2015, p. 21 About Two-Thirds Report Their Company Is Performing Well on the Most Familiar Process

22. Supply Chain Insights LLC Copyright © 2015, p. 22 Generally Equal Assessment of Performance by Roles

23. Supply Chain Insights LLC Copyright © 2015, p. 23 Strengths and Weaknesses of Most Familiar Process

24. Supply Chain Insights LLC Copyright © 2015, p. 24 Performance Profile: Company Details

25. Supply Chain Insights LLC Copyright © 2015, p. 25 Performance Profile: Process Details

26. Supply Chain Insights LLC Copyright © 2015, p. 26 Expected Impact and Actual Performance of Most Familiar Process Line Up in the Same Order, into Three Tiers

27. Supply Chain Insights LLC Copyright © 2015, p. 27 Top Expected Impact and Performance: Quality Improvements, Profit Increase, WIP Cost Reduction and Waste Reduction

28. Supply Chain Insights LLC Copyright © 2015, p. 28 Greatest Performance Gaps vs. Expectations: Quality Improvements, Profit Increase and Speed to Market

29. Supply Chain Insights LLC Copyright © 2015, p. 29 Those in Supply Chain Are Slightly More Likely Than Finance to Report Process Performs Well on Inventory Reduction and WIP Cost Reduction

30. Supply Chain Insights LLC Copyright © 2015, p. 30 Process Managers/Leaders Are More Likely Than Others to Report Process Performs Well on Quality Improvements

31. Supply Chain Insights LLC Copyright © 2015, p. 31 Over One-Third Report Most Familiar Process Is More Important Than Last Year

32. Supply Chain Insights LLC Copyright © 2015, p. 32 Why Process Is More/Less Important Than Last Year (Open-Ended)

33. Supply Chain Insights LLC Copyright © 2015, p. 33 Over Half Have a Center of Excellence with 5 Functions on Average

34. Supply Chain Insights LLC Copyright © 2015, p. 34 Those Who Rated Their Process Higher Are More Likely to Have a Supply Chain Center of Excellence

35. Supply Chain Insights LLC Copyright © 2015, p. 35 Three-Quarters Report Center of Excellence Is Effective at Driving Continuous Improvement Processes

36. Supply Chain Insights LLC Copyright © 2015, p. 36 Respondents Are Split on Whether Calculating Cost Impact Is Easy or Difficult

37. Supply Chain Insights LLC Copyright © 2015, p. 37 Those Who Rated Their Process Higher Are More Likely to Have an Easier Time of Calculating Cost Impacts

38. Supply Chain Insights LLC Copyright © 2015, p. 38 Three-Quarters Report Company Considers Cost Savings as Definitive Changes to the Operating Budget

39. Supply Chain Insights LLC Copyright © 2015, p. 39 Agenda  Study Overview  Continuous Improvement Overview  Continuous Improvement Performance  Supply Chain

40. Supply Chain Insights LLC Copyright © 2015, p. 40 Nine-in-Ten Have a Supply Chain Organization, with an Average of 5 Functions Reporting Through It

41. Supply Chain Insights LLC Copyright © 2015, p. 41 Nearly Two-Thirds Report That the Supply Chain Leader Reports to the President or a C-Level Executive

42. Supply Chain Insights LLC Copyright © 2015, p. 42 Nearly Two-Thirds Have a Group/Person Responsible for Design of End-to-End Supply Chain Processes

43. Supply Chain Insights LLC Copyright © 2015, p. 43 Top Elements of Business Pain: Cross-Functional Alignment and Talent Issues

44. Supply Chain Insights LLC Copyright © 2015, p. 44 Alignment Is Among Top Pain Across Roles

45. Supply Chain Insights LLC Copyright © 2015, p. 45 Alignment Is Among Top Pain Across Roles