1. www.matrixone.com Process Maturity: Things that Work Barry Foster Director, Corporate Quality 4/18/2000 Barry Foster Director, Corporate Quality 4/18/2000

2. Background of MatrixOne, Inc. MatrixOne Inc. Headquarters – Chelmsford Ma. Products serve as an Internet platform that facilitates collaboration within an enterprise and among the enterprise's customers, suppliers, and other business partners 340 Employees World Wide Involved in Process Improvement for 3 + Years Involved in Process Improvement for 3 + Years Average Project Size Average Project Size –10-15 Engineers –5 to 7 Projects going simultaneously – Sharing Resources

3. Process Improvements Enablers Enablers –Executive Support President & Engineering VPPresident & Engineering VP Reinforcement - Weekly Executive Report on ProjectReinforcement - Weekly Executive Report on Project –Strategic Objective – Technology Leadership

4. Process Improvements That Worked Neutral Assessment of Maturity Level Neutral Assessment of Maturity Level Document What We Do Document What We Do –Not What we want to Do –Assign Engineering Team to Document Procedures Project Post Mortems Project Post Mortems –Identify Areas for Opportunity Brown Bag Luncheons Brown Bag Luncheons Capitalized on our own Product Capitalized on our own Product –Electronic Process Implementation Automate Development ProcessAutomate Development Process Eliminate Paper Process – ElectronicEliminate Paper Process – Electronic Process & Project VisibilityProcess & Project Visibility Peer Reviews For Maintenance Release Peer Reviews For Maintenance Release Small Steps to Success Small Steps to Success

5. How Did Improvements Affect The Organization 90-95% of Projects Now Meet Delivery Schedule 90-95% of Projects Now Meet Delivery Schedule 30% reduction in Time to Market 30% reduction in Time to Market –1 Year Development now takes 9 months Improved Product Quality Improved Product Quality –Reduction in Number of Maintenance Release 6-8 Significant Maintenance Releases now we only have 2-36-8 Significant Maintenance Releases now we only have 2-3 Control over Development Processes Control over Development Processes Engineers have clear ownership Engineers have clear ownership –No Duplication of work or confusion Standardized & Control of our Development Processes Standardized & Control of our Development Processes –Improved Moral –Credibility with Management

6. Factors Affecting Improvements Assign MBO’s to Engineering Managers Assign MBO’s to Engineering Managers Customer Requirement Customer Requirement Engineering Team involvement with initiative Engineering Team involvement with initiative –Control and Influence over process improvement

7. Time to Show Improvement Short Term – Predictability with Meeting Schedule Short Term – Predictability with Meeting Schedule –18-24 Months Long Term – 24-36 Months Long Term – 24-36 Months –Managed Processes –Increased # of New Features in a new release –Reduction in the Number of Maintenance Release –Ability to manage more Projects simultaneously with Shared resources

8. Recommendations Executive Sponsorship Executive Sponsorship –i.e President, Vice President Engineering Strategic Objective Strategic Objective – Business Reasons not CMM-Level 2 Certification Engineering Buy-in [Highest Level] Engineering Buy-in [Highest Level] Neutral Assessment of Process Maturity Neutral Assessment of Process Maturity