1. TF&S – Deployment Structure February 24, 2003

2. Proposed Deployment Structure Exec. Consultant Paul Gillard TFS Ken Chmiel Division Steering Committee Exec – D. Sollenberger Fin – J. Anderson ADT - Tim Wahl SG -Dave Casares TSPM R. Henderson, TSPT XXXX Finance Jim Anderson Deployment Paul Giessler Project Champions Black Belts Project Champions Team Members/GBs Engagement MBB #5 Engagement Mgr #3 MBB Instructors TBD BU Champions Funct. Dep. Champions HR – Daniel Casteel Finance – IT – Rob? Communication Training - Lisa Back Offce Mary Tomlinson Provide Deployment Support: Deployment guidance Identify resources, structure Validate savings Training materials, scheduling Project management office Tools and Templates LogisticsLogistics ReportingReporting Partner with Champions to: Drive Project Clusters Scope and Prioritize Projects Coach Champions Deliver results Train and Mentor BBs & GBs Push project completion Provide guidance Tools support Materials development Project Champions Functional Champions Prioritization, Focus, Accountability, Reward Business Unit Deployment Team Business Unit Instruction Team Core Division Deployment Team Champion Six Sigma across enterprise Establish polices and procedures Provide resources and support Engage the employees at al levels Eliminate obstacles Prioritization, Focus, Accountability & Reward Drive Project Clusters Scope and Prioritize Projects Coach Champions Deliver results Learn and Deliver Results Drive savings across the enterprise Promote six sigma methodology Business Unit Steering Committee EC. P. Gillard Fin – J. Anderson TBD By BU Deployment Mgr Rick Henderson PG:Need to repeat for each business Unit

3. ADT Deployment Structure Project Champions Black Belts Project Champions Team Members/GBs Engagement MBB #5 Engagement Mgr #3 MBB Instructors TBD BU Champions Partner with Champions to: Drive Project Clusters Scope and Prioritize Projects Coach Champions Deliver results Train and Mentor BBs & GBs Push project completion Provide guidance Tools support Project Champions Functional Champions Business Unit Deployment Team Business Unit Instruction Team Prioritization, Focus, Accountability & Reward Drive Project Clusters Scope and Prioritize Projects Coach Champions Deliver results Learn and Deliver Results Drive savings across the enterprise Promote six sigma methodology Business Unit Steering Committee EC. P. Gillard Fin – J. Anderson TBD By BU

6. Steering Committee Structure Six Sigma Executive Review Board Business Unit Steering Committee Business Unit Steering Committee Business Unit Steering Committee Business Unit Steering Committee Business Unit Steering Committee Business Unit Steering Committee Business Unit Steering Committee Business Unit Steering Committee Number of Business Unit Steering Committees driven by level of activity at BUs Oversees BU Six Sigma Steering Committees: Who…BU Management, SSA ECs, DMs, etc. Why… BU Six Sigma Organizational/Personnel Issues Strategic Alignment…Business Goals/Projects Progress towards goals & adjustments Project review, approval, monitoring & sign-off Reward & Recognition When… Meets 2-4 hours / week Review 10 – 15 projects / week Six Sigma Executive Steering Committee: Who…Client Sr. Leaders, BU Presidents, SSA Senior Leaders Why… Communications Goal Setting & Strategic Alignment Organizational/Personnel Issues High Level Program Review (progress) Policies (R&R, rules of engagement, etc.) Major project reviews (>$10M) When…Monthly Hierarchy Addresses Different Levels Of Responsibilities & Project Volume

7. Business Unit Steering Committee Business Unit Steering Committee Nominations Certifications R&R Placement Issues Communications Nominations Certifications R&R Placement Issues Communications Human Resource BU Champ./ MBB Program to date summary Current Month performance YTD & FY Forecast Pipeline review Highlight Projects Program Performance BU Champ./ MBB BB/MBB Project Reviews (Proposed & Tollgate) BB/MBB Benefits Change Request Report to TFSS SC Performance Projects HR Meets Monthly, after books closed Business Unit Steering Committee Operations BU Champ.

8. Business Unit Steering Committee Operations 1.Reviews/Approved Six Sigma Projects: New Project Proposals: Project Charter drafted by BB/MBB Includes Proposed Scope, estimated cost, benefits, benefits measurement systems, resource requirements Steering Committee considers Scope, Measurable Hard benefits Context -Appropriate for BU at this point in time Tollgate Reviews: Summary prepared by BB/MBB Highlight significant changes from previous tollgate review Identify barriers, issues, needs Discuss next steps 2.Reviews/Approves Benefits Measurements to Approved or Completed Projects: Need for change prepared by BB & MBB, reviewed with BU Finance Projections prepared for impact to program of proposed change If Steering Committee does not reach agreement to change, benefits measured with previously accepted method (method approved at time of Control Phase, or subsequent agreed method) 3.Addresses HR issues: BB & MBB Nominations BB & MBB Certification Reward & Recognition Program Placement issues (Tyco & SSA) – individuals that need to be moved out of six sigma program 4.Reviews Results - Program performance report prepared by BU Champion -Highlighted Individual projects -Pipeline review -Current Month performance -YTD & FY Forecast -Program to date summary -Results summarized, reported to TFSS Steering Committee

9. Dispute Resolution Benefits Measurement:  Project cycle reviews (D-M-A-I-C)  Benefits Measurement method for each project are approved at the time the Control Phase is completed and the Steering Committee signs off on benefits measurement & methods.  Changes to benefits measurements require Steering Committee review & approval. If Steering Committee can not reach agreement on a recommended/requested change, measurement method will remain unchanged (i.e. method approved at Control phase, or as subsequently approved by Steering Committee) Staffing:  Tyco will identify & communicate concerns about SSA provided Trainers & MBBs to SSA’s Program Executive (Debby)  SSA will identify & communicate Tyco BB & MBB staff to Tyco’s Sr. Six Sigma Champion (Ken) and the appropriate Business Unit Champion  In addition Tyco will provide feedback to SSA on all aspects of staffing (program staff, back-office, etc.) and SSA will provide feedback on Tyco staff including Champions, Business Leaders, etc.  If unable to resolve staffing disputes, each party has the right to insist on replacement of up to 10% of subject staff used in program to-date

10. Tyco / SSA Partnership Strategy Represents deployment model for each major business group that Is selected for deployment Deployment Duplicated Across Tyco Lines of Business SSA Will Provide Tyco with a Common Language and Metrics Across All Products & Processes … a Shared Framework, a Roadmap, a Set of Principles

11. Best Opportunities to Start? Electronics Plus Fire and Security - 62% of 2001 Revenue Electronics Plus Healthcare - 66% of 2001 Revenue