1. Bill Clinton Vice President - Merchandising Process Management

2. Learning Objectives –Work Systems Design –Key Work Processes –Work Process Design –Work Process Management Process Improvement –Results

3. Design and Innovate –Strategic Planning Process Strategic Objectives SWOT Stakeholder Key Requirements (SKRs) Customer Complaint Management and Continuous Improvement Projects –Modern Management Practices ISO 9001 Lean Six Sigma Baldrige Business Model Work Systems 6.1 a

4. Merch - andising Logistics Workforce Focus Order Taking Marketing Facility & Equipment Mgmnt Performance Excellence Information Systems Financial Services Key Processes Support Processes Work Systems 6.1 b

5. Logistics Stocking LAP-5 Stocking LAP-5 Damaged Product Tote Fixing Stocking Stocking Admin Cycle Counting Department Process Section Processes Area Processes Slotting Work Systems 6.1 b

6. Emergency Readiness –Integrated Contingency Planning Business Continuity Planning Disaster Recovery Planning Risk Analysis (Severity and Likelihood) Recovery Time Objectives Work Systems 6.1 c

7. –Develop Action Plan POSEC –Plan – Organize – Staff – Execute - Control –Stakeholder Requirements Strategy to Meet Stakeholder Key Requirements Measurements Goals and Benchmarks Process Documentation Process Deployment and Training Work Processes 6.2

8. Identify the process strategy Template for process development Identify Stakeholder requirements Identify interrelated processes Process Summary 6.2 a

9. Work Instructions 6.2 a Where the hands-on work happens Step-by-step guide to the process Complexity depends on the process

10. Section Performance Measure Company Scorecard Department Scorecard Area Process Measures Supervisor Daily Review Monthly SLT Review Monthly Review with President Monthly DLT Review Process Management 6.2 b

11. MidwayUSA Process Balanced Scorecard Key Process2009 2010 YTD Area Process Measures 2010 YTD February /Q1 Marketing99%97% Web Marketing88.5% Publications100.0% CRM99.2% Sponsorship, Advert & PR90.7% GunTec99.0% Training & Development100.0% Logistics93%99% Stocking100.0% Repack94.0% Receiving99.0% Shipping100.0% Warehouse100.0% Product Control100.0% Returns100.0% Training & Development100.0% Process Management 6.2 b

12. LO Process Scorecard Today’s Date: 3/1/10 Area Process Section Process Measures 2009 2010 YTDFebruaryQ1 EOYActualGoalActualGoal Shipping Same Day Shipping98%99.5%99%99.4%99% Stocking Cost per Invoice$1.55$1.51$1.52$1.51$1.52 Cost per Line$3.31$2.94$3.00$2.94$3.00 Stocking Cycle Time N/AComing Repack Cost per Invoice($0.65)$0.52 $0.00($0.65) Repack Labor Variance22.4%-11.2%+/- 10%0.0%+/- 10% Receiving Cost per Invoice$1.37$1.34 $1.00$1.34 Cost per Line$3.77$3.69$3.64$3.00$3.64 Receiving Same Day99.4%98.4%95.0%0.0%95.0% Process Management 6.2 b Sample Data

13. Shipping Process Balanced Scorecard Section Process Measures20082009 2010 YTDFeb-10 ActualGoalActualGoal Quality Shipping Pkg QA 16 99.7%99.9%99.5%99.9%99.5% Shipping Accuracy 96.79%97.3%95.5%97.5%97.4%97.0% Picking Success n/a98.9%99.2%99.0%99.3%99.0% Batch Pick Success n/a99.80%99.9%99.0%99.9%99.0% Service Same Day Shipping 98.29%98.9%99.8%99.0%99.8%99.0% Cost Cost per Invoice $4.80$3.62 $3.59$3.62 Dir Labor $$ per Inv $2.00 $2.15$1.98$2.15 Ship QC Invoices / Hr 202637303930 Picking Lines / Hour 137163 160180150 Process Management 6.2 b Sample Data

14. Individual Performance Measure: Charlie Heston Area Process Section Process Measures 2010 YTDFebruary/2010 ActualGoalActualGoal Stocking Stocking Lines / Hour 20.115NA20 Receiving Rcvng to Cart LPH 323032.830 Product Control Physical Inventory Training YesNA Shipping ShipQC Lines / Hour 38.643039.630 Picking Lines / Hour 245150267150 Picking Error Rate 3.20%3.00%2.70%3.00% Shipping Pkg Quality 79.70%79.50%80%79.50% Training & Development Reliability 98.68%97.40%98.00%97.40% Job Knowledge 15101510 Process Mgmnt CoC Violations 0000 Process Management 6.2 b Sample Data

15. Process Improvement 6.2 c Identifying the need –Monitoring, Measurement, and Review –Strategic Planning Process –Development of Action Plans to achieve Strategic Objectives –SWOT –Customer Complaint Management Process Improvement Tools –Lean Projects –Six Sigma Projects –Action Plan Charters

16. Results 7.5 Lean Project Implementation Sample Data

17. Results 7.5 Lean Project Implementation Sample Data

18. Results 7.5

19. Bringing it all together…

20. Questions? Thank you! Our best wishes to you in your pursuit of performance excellence! For more information: www.AmericaNeedsBaldrige.com qms@midwayusa.com