1. Lean Solutions © Fujitsu Canada Lean Solutions © Fujitsu Canada Exclusive Proposal Revision March 12, 2010 Exclusive Proposal EO9007 – Measurement and Analysis of Manufacturing Operations, Product definition and change management Revision March 12, 2010 Presented by : Jean-Pierre Dubé, Eng. Vice-president, Lean Solutions Cell : (514) 710-1550 E-mail : jean-pierre.dube@ca.fujitsu.comjean-pierre.dube@ca.fujitsu.com Presented to : Mr Kirk Rowe Executive Vice President, COO Email : kirk.rowe@innotech-execaire.comkirk.rowe@innotech-execaire.com Phone : (514) 636-7070 Fujitsu Consulting (Canada) Inc. 1000 Sherbrook Ouest, 15 th floor Montreal (Québec) J4B 6G4 Innotech-Execaire 10225 Ryan Avenue Dorval (Quebec) H9P 1A2 1

2. Lean Solutions © Fujitsu Canada 2 Proposal Plan  Objectives  Methodology  Budget Profits for Your Business and the Planet

3. Lean Solutions © Fujitsu Canada 3 Proposal Plan  Objectives  Methodology  Budget Profits for Your Business and the Planet

4. Lean Solutions © Fujitsu Canada Objectives In order to decide if a full diagnostic is worth doing, it is proposed to do a Measure an Analysis phase at a high level on the manufacturing, the product definition and change management. The main objectives are:  To have a good understanding of the actual situation of the current activities  Identify possible areas of improvements  Quantify in dollars the savings of the transformation 4

5. Lean Solutions © Fujitsu Canada 5 Proposal Plan  Objectives  Methodology  Budget Profits for Your Business and the Planet

6. Lean Solutions © Fujitsu Canada What is a Kaizen Workshop?  Employees participating in an Kaizen workshop are responsible for:  Providing their ideas and expertise to conduct the improvement project based on the Project Sheet  Helping their team work smoothly  Playing a significant role in examining and implementing tangible improvements  Communicating the details of the improvement project to their colleagues, asking for feedback and having their ideas validated  Informing people about potential changes that may concern them  Preparing an action plan detailing all actions required to conduct the improvement project  Estimating the improvement project’s costs and benefits  Presenting the improvement project to management and all employees  Actively participating in implementing actions  Monitoring and communicating progress in the action plan  Developing solutions to problems encountered during implementation 6

7. Lean Solutions © Fujitsu Canada Methodology; Preparation of 2 Kaizens  In order to meet the objectives, we propose to conduct 2 Kaizen workshop  One Kaizen on Assembly Line and Manufacturing work structure  On Kaizen on Product Definition and Change management  The preparation of these two kaizen will be as follows  Specific objectives to be achieved  Boundaries of the Kaizen (start and end) and scope (inclusions and exclusions)  Constraints to be respected  Agenda  Kaizen participants 7

8. Lean Solutions © Fujitsu Canada Methodology: Facilitate the two Kaizen  The two Kaizen will be of 3 days each and will be conducted at the same time in order to save calendar time  We will need two conference room as close as possible to each other for a maximum of 8 persons per room  Detailed activities and tools for each Kaizen will be forwarded with the kaizen’s agenda 8

9. Lean Solutions © Fujitsu Canada Methodology: Facilitate the two Kaizen (cont.)  Model the extended value chain with a high level VSM (Value Stream Map)  Material flows of the key operational processes  Analyze the key management rules and information systems currently used to manage materials in the extended value chain  Identify key MURA, MURI and MUDA  MURA means irregular. Irregularities in material and information flows in operational processes  MURI means excess or unreasonable. Overused or underused resources and business practices not justified by common good sense  MUDA means waste. Any activity that consumes resources without creating value in the eyes of internal or external clients 9

10. Lean Solutions © Fujitsu Canada Where To Begin To Model Your Business? Work Method Ex: The work methods to operate and maintain a machine Operational Process Ex: Your purchasing process Extended Value Chain 1- Supply Chain 2- Internal Value Chain 3- Logistic Chain Internal Value Chain The processes for manufacturing a product family Benefits ( $ ) / Efforts ( $ ) Ratio Extended Strategic Approach Vision to 5000 m. altitude Emphasis on the overall performance of the company and its partners Internal Strategic Approach Vision to 3000 m. altitude Emphasis on the overall performance of the company Operational Approach Vision 500 m. altitude Emphasis on the achievement of Kaizen Workshops Tactical Approach Flew over the daisies Emphasis on the deployment of LEAN tools: 5S, Kanban, Cellules, Poka Yoke, … 1 2 3 4 Level of Detail + + - - 10

11. Lean Solutions © Fujitsu Canada 1 st level VSM - Value Stream Map (Strategic Direction) 1 st level VSM - Value Stream Map (Strategic Direction) 2 nd level Functional Map (Process Reengineering) 2 nd level Functional Map (Process Reengineering) 3 rd level Material or Information Flow Diagram (Work Method Improvement) 3 rd level Material or Information Flow Diagram (Work Method Improvement) How To Model Your Business? 11

12. Lean Solutions © Fujitsu Canada Proposed Team  Jean-Pierre Dubé, P Eng.  Master Black Belt LEAN Six Sigma  Vice-president, LEAN Solutions  25+ years of Experience  Daniel Cyr, P Eng.  Director, LEAN Solutions  25+ years of Experience  Frédérick Gagnon, P. Eng.  Director, LEAN Solutions  20+ years of Experience 12

13. Lean Solutions © Fujitsu Canada Partnership For Project Development  We use a project development method based on the interactive sharing of client/consultant knowledge and skills to deliver maximum results 13

14. Lean Solutions © Fujitsu Canada 14 Proposal Plan  Objectives  Methodology  Budget Profits for Your Business and the Planet

15. Lean Solutions © Fujitsu Canada Professional Fees 15 FIXED COST Vice-presidentDirectors Project Assistant 2 800 $ 2 400 $ 400 $ 1- Planning and organization of 2 simultanious kaizens work shops 1 2 Kaizen Sheets 2 agendas for the Kaizen 2 Kaizen materials 15 600.00 $2.004.001.00 2- Kaizen: Assembly Line and Manufcaturing Work structure 2 Facilitate a 3 days IMPACT-Kaizen workshop with key managers in order to; - Understand current Assembly Line and Manufacturing structure - Identify major inefficiencies and wastes - Elaborate realistic new model - Quantify in dollars the targeted gains (Efficiency and WIP reduction) 14 000.00 $2.003.003 3- Kaizen: Product requirement and change management 3 Facilitate a 3 days IMPACT-Kaizen workshop with key managers in order to; - Understand current process of product definition and change management - Identify major inefficiencies, noise and wastes - Elaborate realistic new model - Quantify in dollars the targeted gains (Efficency) 10 000.00 $1.003.00 TOTAL FIXED PRICE including professional fees but excluding expenses and applicable taxes 39 600.00 $ 3.006.003.00 Convinced that our LEAN strategy will identify important opportunities, FUJITSU is prepared to invest 50% of the professional fees in your company to conduct a Pre-Phase of the MEASURE & ANALYZE activities. 50% TOTAL FIXED PRICE including professional fees but excluding expenses and applicable taxes 19 800.00 $

16. Lean Solutions © Fujitsu Canada Why Choose Fujitsu Canada?  Exclusive improvement strategy making it possible to substantially improve the overall performance of your enterprise  Unique value creation process to deliver immediate, sustainable benefits  Extensive improvement experience gained on hundreds of projects conducted on over 200 SMEs and multinationals in 17 countries  The depth of an engineering + management firm that practices scientific resource management  Collaborative work based on the synergistic optimization of group intelligence. This approach supports the interactive sharing of knowledge and client/consultant skills to get exponential results 16

17. Lean Solutions © Fujitsu Canada Intellectual Property Policy The present document is the sole and exclusive property of Fujitsu Consulting (Canada) Inc. Unauthorized use, disclosure, or reproduction, in any form, of the material contained in this document is strictly forbidden. Its unauthorized or illegal use may result in the legal prosecution of offenders. © Fujitsu Consulting (Canada) Inc. 2009 17

18. Lean Solutions © Fujitsu Canada