with Proudfoot, you can.

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1 Operational Excellence What if you could achieve outstanding results fast across all functions and sites? with Proudfoot, you can.

2 World Class performance is more than just improved processes, systems and tools What if you could... execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the needs of your business? embed a culture of continuous improvement in an empowered working environment at all levels in your organization? achieve both tangible results and true cultural transformation? realize Operational Excellence that is built to last? get improvements that are driven bottom up, from the shop floor? with Proudfoot, you can. Operational Excellence Organization Processes Tools Strategy Typical Pain Points in Operational Excellence HSE Customers Mindset Is your organizations agility at the level to strive from aspiration to the actual application of Operational Excellence? Isn t your workforce more valuable when it is empowered to contribute to excellence? Behavior Proudfoot helps you to accelerate your journey to Operational Excellence, leading to sustained better performance and value generation

3 People and their behaviors are at the heart of Operational Excellence sustained results Operational Excellence programs often fall well short of management expectations. Why? Because too much effort is focused on tools and techniques, or on the development of training and handbooks. In our experience, for improvements to be sustainable far more effort needs to be placed on implementation, especially changing behaviours. Performance Level 95% 95% 95% 75% Overall Performance Processes Management Systems Improvement Techniques People & Behaviors 64% in short, the key link between aspired and achieved Operational Excellence is your people Successful Operational Excellence is powered by your people: understanding their roles and responsibilities doing the right thing whilst working with simple, aligned and wellknown processes being empowered to make decisions as required striving for excellence in all that they do being focused on the benefits for the business and building the company they want to work for

4 Operational Excellence is a journey from various stages of variability to achieving continuous improvements sustainably Performance Level 1 Basic Initiatives Level 2 Structured Approach Level 3 Established Level 4 Outstanding Level 5 Perfection Stabilise (Analyse) Standardise (Eliminate Waste) Optimise (Flow) Improve (Pull) Continuous Improvement Six fundamental principles of Proudfoot's Operational Excellence approach: Time Time Operational Excellence is a way-of-working, not a program Reinforce that Operational Excellence is a commitment to a different way-of-working, not a project with an end-date, minimize bureaucracy and use effective tools to plan and manage implementation Emphasize Operational Excellence-thinking, not Operational Excellence-tools on the creation of customer value through improved work-flow and the elimination of waste, not the implementation of tools Conduct awareness training before implementation Invest in up-front training to create understanding and awareness of Operational Excellence principles including continuous improvement, performance management and adaptive change to embrace change positively Top-down, bottom-up, and end-to-end Implement top-down performance management to create pull for improvement, build capabilities bottom-up within teams and optimize work-flow across endto-end processes to improve performance and understanding Implement KPIs before introducing Operational Excellence techniques Define value and performance measures first to identify focus areas and select the relevant approach and tools end-to-end Think big, start small, scale fast Start with a limited scope proof of concept project to demonstrate benefits, use self-implementation for rapid deployment of foundation practices, use coaches to build internal capabilities and quickly replicate best practices

5 Success factors to drive an Operational Excellence (OE) Mindset OE design principles: The missing link to achieving OE is your people in terms of leadership, change capability, ownership and accountability Leadership Communication Setting the tone Removing barriers Ensuring alignment Peer collaboration Training Coaching Accountability & Results Leadership OE Mindset Change Capabilities Accountabilities & Results Setting clear targets Results tracking Assigned responsibilities Firm expectations Peer pressure to deliver People Results Foundation Process Systems Change Capabilities Planning Engagement Tactics Pace of change Implementation experience Tools for level of maturity Visual performance Interfaces: Customer, Supplier, Value Chain, Aliances Mindset Management Model & Bias for Action Operational Excellence Behaviors Coaching & Skills Management Tools, Decision Support, Analytics & Resourcing Infrastructure Org design, RACIs Technology & Governance Strategic Your firms OE Design Choice i.e. quality, safety, cost Process Effectiveness, Workflow & Work Methods

6 Three selected client examples demonstrate our Operational Excellence expertise +700m Yearly recurring benefits at program end -3.5 /t Cash cost per ton improvement in pilot plants 4 % Utilities/ energy costs reduction 3 % Maintenance cost reduction 2 % Throughput increase in `sold out lines New Global-to-Local Target Operating Model Client Challenge: Following a major merger, this sector leader in Building Materials wanted to put in place one way of working across its cement plants What we did: Stakeholder alignment across process and interfaces at its 300+ locations Program design ensured a sustainable framework implementation, considering local specificities, delivering a Global Local Target Operating Model Covered Quarry - Lorry best practices along the total cement value chain Created Maturity Assessment tool that enabled benchmarking each plant Transformational Capability learning to achieve operational / financial objectives Results: Digital ready Target Operating Model designed and implemented for worldwide roll-out Financial Results driven by Operational Excellence (OE) Client Challenge: The European arm of a global chemicals leader needed to improve the operational and financial performance of their assets by accelerating their Operational Excellence journey What we did: Launched a phased approach across 6 countries initiated by an OE Assessment Defined and piloted new operational standards at a key location Substantiated cross-border Project Management Planning and Scheduling Developed transformation skills and expertise within client change teams Performed short-interval on contractors including Performance Management. Identified opportunities for digital solutions to further enhance performance Results: New standardized approaches fuelled by the desired cultural change, generating significant benefits in throughput, maintenance cost and energy efficiency 30 % Direct cost reduction 15 % OEE increase 5 % Absenteeism reduction Operational Excellence rescues supplier performance Client Challenge: This global Tier-1 automotive interior supplier needed to rapidly improve performance in a key plant facing chronic problems in costs, supply to OEM lines which was resulting in lost orders What we did: Conducted a thorough current state analysis of the entire plant s value chain including behavior of employees and executives Optimized processes, operational management systems and, above all, enhanced proactive leadership and a continuous improvement culture Balanced production and assembly lines eliminating non-value-add activities Executed an intensive on-thefloor change program to ensure sustainability Results: Within 25 weeks, stabilized production and on-time deliveries to OEM lines reducing scrap by 2% and rework by 14%. OEM orders were not lost

7 Proudfoot understands your pain points and how to turn them into improvement opportunities. We help you to implement the necessary productivity uplift, in order to realize the Value of your People. We engage with your Leadership Teams to rapidly unlock their hidden potentials. You gain transformational capabilities which not only make your organization more agile, but also enable the realized benefits to be sustained over time. We design, implement and accelerate Operational Excellence - realizing tomorrow s results today. What if you could? With Proudfoot, you can. GET IN TOUCH DR. SVEN FRIES Executive Vice President An der Welle Frankfurt am Main Germany sfries@proudfoot.com Tel Mob