1. Product Owner Evolution Agile and Lean Development Conference - 2014 Walter Pruchnic May 2014

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3. Executive Summary Our Agile/Scrum journey has resulted in a significant reduction to management processes that historically have had unquantifiable impact on final outcomes.

4. Agenda Who are we at Intel? Early “Project Management”. Establishing the Product Owner. Q&A. 4

5. What We Do Our Unique Value,.. WW8 2013 Joan Tafoya | Intel Confidential 5 Own and execute supply strategy to position Intel for financial success Enable decisions that align stakeholders across the supply chain. Balance customer service level requirements with costs. Supply Planning Operations (SPO)

6. Some History Large-scale, robust, well integrated, algorithm-based decision support solutions for Intel’s $40B supply network. Nextgen Master Production Scheduling. Since the early 1990’s, attempted this over 9 times, spending in the hundreds of millions of dollars with very limited benefit. 6

7. 7 Next Gen MPS Roadmap Fab MPS Convergence AT MPS Convergence Program Explore ECEP Fab MPS Conv Ph 1 CPU Fab MPS Conv Ph1 Fab MPS Convergence Ph 2 Technical Platform JOLT Solver Chipsets Explore Databank WFDS Migration AT MPS One Common Design ATM MPS Phase 1 Deployments Contingent upon Explore,,Design& /or Project Launch Date ~50% confidence Committed Deployments Explore / Design / Foundational Dev Deployments Contingent upon Planning Activities Completed Deployments Chipsets / PP2 Data Readiness Integrated Testing, Schedules Validation & Deployment *Deployments require 2-3 month stabilization Fab MPS Convergence Ph 2 – Process Transformation, Convergence, CT Reduction ATM MPS Phase 2B Die Response Solver Chipset /PP2 Non-Solver MPS Convergence Chipsets /PP2 AT MPS CR Convergence ATM MPS Phase 2A Capacity Response Solver Integration of Ecosystem Tools (Dmd, Foundry, Subcon, DSE, etc.) Chipset /PP2 WFDS Technical Platform / WFDS Proliferation Chipsets / PP2 Data Conversion Chipsets /PP2 AT MPS DR Convergence Chipsets /PP2 Fab MPS Convergence Zhihui Integration Fab MPS Scrum Team ATMPS Scrum Team

8. “Why do you have to do a proof of concept?” “Tell me when you’re going to be done!” “What do you mean it’s in production?” “Well done team!”

9. ON-SITE CUSTOMER! PULL! (not Push) TEST, TEST, TEST!

11. The Scrum Team rejected. We rejected. Servant Leadership! & a member of the technical team!

12. Solution: Overview Project Manager Product Owner Idea! Value CommitGo Live Closure Backlog FormedReleases to P.O. Released to Users CONFLICTING DYNAMICS!

13. Perception Project Manager Product Owner The Project Manager is running the show & there is value. The Product Owner is my on-site customer rep & servant leader. A schedule exists. Scrum Team just keeps making progress. Management feels in control of making decisions. Scrum Team just keeps making progress. Product is delivered quickly. Scrum Team finishes & The Product Owner says “whew”.

14. ON-TIME RELEASES BEST-IN-CLASS QUALITY TRANSPARENCY ADAPTIVE TO CHANGE

15. ELIMINATION OF PLC MILESTONES

16. Key Result “The PLC process feels like watching a glacier move. It is slow, reactive, and is not set up to respond to the changing business needs. In my experience, the environmental landscape changes dramatically between the time that a ‘value’ decision is made and a ‘go’ decision is made. In between, the team working on the project through PLC is heads down and out of touch with this everything else going on. There is no ‘sensing’ mechanism in the PLC process to check: 1) if indeed the customer is getting what they want and need, 2) evaluate if this project is still the right thing to do given the business climate and resources available, and 3) provide rapid reflection for learning – in the spirit of continuously getting better. The Agile / Scrum process provides all of this. I’m not sure why anyone would want to use PLC. For any business that wants to remain competitive, profitable and relevant, PLC is not the answer –it is too expensive!” -- Joan Tafoya, Director of Supply Planning Operations, Q1-2014

17. Conclusions If you are practicing Agile/Scrum in a Waterfall culture: –Results are required. –Be open to accepting realities and find ways to make those realities work. –Have Patience, Trust, Transparency.

18. Q & A Walter Pruchnic –Chandler, Arizona, USA @ 480-552-9852. –walter.pruchnic@intel.com 18

19. Backup

20. CPLG Customer Fulfillment Planning and Logistics Group Intel Confidential — Do Not Forward 20 Leadership R&R (Agile Architects, Product Owners & Scrum Masters) Copy-Exact Explore-Design- Implementation Process (SCRUM) Copy-Exact Engineering Process & Knowledge (Agile Engr BKM’s) Common System Architecture Common Leadership Common Planning Process Common Engineering Practices Foundational Framework

21. CPLG Customer Fulfillment Planning and Logistics Group Intel Confidential — Do Not Forward Quality Data (inc. Fab MPS, ATMPS CR, & ATMPS DR) 21 Less than 5% of solve runs require SPDT support. ~40% of all support is related to explaining solve results; ~8% is a code defect.

22. Acknowledgements Illustration Acknowledgement: –“Scrum” illustration: http://blogs.msdn.com/b/bharry/archive/2011/06/2 1/the-importance-of-feedback-in-software- development.aspx http://blogs.msdn.com/b/bharry/archive/2011/06/2 1/the-importance-of-feedback-in-software- development.aspx –“Choice” picture: www.changingthetide.orgwww.changingthetide.org –“Boss” illustration: www.pbsmastragix.comwww.pbsmastragix.com –“Communication Cans” illustration: www.theemailadmin.com www.theemailadmin.com –“Servant Leadership” illustration: www.wisdomresearch.org www.wisdomresearch.org –“Magic Hands” picture: www.dreamstime.comwww.dreamstime.com Agile Fluency Model: –James Shore: www.jamesshore.comwww.jamesshore.com